As consumers get more creative and innovative on how to save many, many have discovered bank repossessed cars and impound cars for sale to be a great bargain! Much like the old bargain basements in large department stores, you will do some searching through the frogs before you find your prince (or princess). However, when the savings are potentially in the thousands, the effort and patience required will be worth it. Shopping for police impounded cars for sale is a bit different than then the world of bank repo cars. And, it’s helpful to know how to take advantage of the bargains and finds offered by each type.
Bank Repo Cars for Sale
When banks lend money to purchase cars, they expect to be repaid as agreed on the loan documents. Unfortunately, this does not always happen. When no agreement is reached between bank and borrower, a bank may take ownership of the car. Now, banks are not car dealerships. It is in their best interest to not maintain a large inventory of these cars. It is more likely they will put these cars up for sale at auction. Auction companies specializing in bank cars for sale will make announcements in the newspapers, on radio or on the internet. A period of time will be allowed ahead of the auction for potential buyers to come browse the inventory. Inventories may also be made available on the internet, which is helpful if you are searching for a particular make and model of car.
Not all bank repossessed car opportunities are big money savers. If the bank is owed more than the car is worth, it may seek to get market value. However, in cases where the loan balance is a fraction of the cars value a price made up of the loan balance and the commission due the auctioneer can be very attractive. Be aware then when you start identifying auctions to shop that some are public, others are private and some are strictly for car dealers. If you know a neighborhood used car specialist that frequents the auctions, you may have yet one more avenue into some great deals. Be prepared to pay a bit more. After all, the dealer wants to be compensated by his or her mark-up. Don’t overlook bank, credit union and finance company parking lots, too. Occasionally, you will see a bank repossessed car parked there with “For Sale” signs in the windows. Don’t be shy about stopping in asking and then negotiating a price.
Police Impound Cars for Sale
The government impounds vehicles for a variety of reasons. Government agencies such as police and sheriff’s departments, the DEA, FBI, and IRS are allowed by law to seize vehicles under certain circumstances. You will find impounded cars for sale that have been used in the commission of a crime and those with a less checkered past, like vehicles seized for the recovery of unpaid taxes. When we think of cars used in crime, most of us imagine high-speed car chases through obstacle-laden streets where the car ends up taking a dramatic beating. It can be safely said that we watch too many moves. A great many cars available as police impounded cars for sale are in great shape with very low mileage. However, you do not have to take the government’s word for it. You may bring your own mechanic to the lot when cars are available for inspection. In some cases, test drives may also be possible. Not unlike banks and credit unions, government agencies are not used car dealers. While they want to get as much as possible for the seized property, they are more than willing to offer a bargain. Vehicle storage is charged by the day, just like when you get your car towed. So, they will do some serious price slashing to keep their inventory moving out the door.
The Bottom Line
The best way to make the best of this kind of bargain hunting is to do your homework on the makes and models that will suit you. Know what the market value of a car in nearly perfect condition is. Know how much minor imperfections can detract from an asking price. The more you can let go of cosmetic features such as paint color or exterior accessory packages, the bigger the field of cars you will have to choose from. The other great preparation step to take is to research your lending options before you ever look at a vehicle. Most auctions are associated with some finance company to facilitate the purchase of vehicles at auction. However, like most “tie-ups” it may not be the best deal, just because it is the most convenient. The bottom line is that there are great bargains to be had in motor vehicles if you are willing to exercise patience and do your homework.
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