If you’re like most people, you’ve heard of all the great deals on bank repossessed cars and would like to know how to go about buying one. This information can save you a lot of money if you’re in the market for a used car.
In today’s market there are two main options for buying bank cars for sale that have been repossessed by banks: public auctions and online auctions.
If you decide to try the public auction, you will be going against professional bidders who represent used-car dealers and that will put you at a disadvantage. In addition, it all moves quickly and you’ll be in a foreign atmosphere and might make a mistake that you’ll regret later.
The best method for most of us is to buy a bank repo through an online auction. This is just another example of how dramatically the Internet is changing our way of buying products. If you’re not fairly expert with computers, it will behoove you to enlist the help of a friend who is an expert. One online source that can get you started is (choosecars.com); this website will give you information about bank repo cars for sale in your location.
When you go the online route you’ll be working from the comfort of your own home with no outside pressures to contend with. Here again, a computer-knowledgeable friend would be a big help. It’s possible to save from 50%-70% of the Blue Book price on many repo cars for sale that have been repossessed by banks. That’s a lot of money.
When you use the online auction you can check the condition and history of the car. You will probably have to use CARFAX to check on the history for possible accidents or any other problems; this will cost a small fee, but it’s worth the expenditure. One online website that can help in checking out a possible purchase is www.gov-auctions.org. There are many websites that will be helpful if you’re serious about buying a bank repo; take your time and study the Internet thoroughly before you move forward.
If you’re in the market for a used car, this is a perfect time to jump right into the online-auction process. Many used repo cars in excellent condition are being repossessed by banks because of the extreme economic problems.
One thing you should do—if you have a solid relationship with your bank—is go in person to your bank and sit down with the person in charge of repo car sales. This is far preferable to trying to do it over the phone and your chances of gaining valuable information and assistance will be much improved after a face-to-face meeting with your banker.
Don’t rush into this procedure blindly; there are pitfalls that you should be aware of and take steps to avoid. The aforementioned car history is important. You should also run everything by a lawyer before you commit yourself to purchasing a bank repo car. That won’t be real expensive and it will be money well-spent and save you worrying about whether or not you did something you shouldn’t have.
A lawyer will be able to determine whether or not there are any hidden costs or warranty issues that need to be addressed. He or she can also advise you on how to handle the change of title and license tag regulations and potential personal-property-tax issues.
It’s wise to set a limit on how much you can afford to spend. If you pay cash for the car, you’ll be much better off in the long run. The car you end up with might not be quite as fancy as you would like, but you can put a bumper sticker on the back that says—“Don’t laugh, it’s paid for.” And it will get you where you’re going.