When you buy a new car from a dealership, its value begins depreciating the moment you put your foot on the gas pedal. To get more car for less money, you might want to consider purchasing a used vehicle. One way to get such a vehicle is through a repossession or “repo” sale.
Cars are repossessed for any number of reasons ranging from one’s failure to make payments to being seized by law enforcement during drug raids. The current economic situation has bumped up inventory tremendously. The resale of these vehicles can mean great savings for savvy shoppers.
Repo cars for sale are sold in various venues for as low as 90% below blue book value. There are several online informational websites that you can purchase memberships to for about $50. For your membership fee, you get such privileges as listings and locations of public auctions throughout the country, inventory of vehicles, contact information and directions to the auctions. Some also provide information and links to online auction sites.
Online auction sites charge membership fees as well. The downside to buying from an online site is that you usually cannot see the vehicles in person before you buy them. A large number of sellers tend to over-hype their merchandise, so this must be kept in mind. If possible, try to buy from an online site that is featuring a car in a location near to you. This way you might be able to go and see the car. You will also avoid huge transport charges. Make sure that there is some guarantee from the site that if the vehicle is grossly different from the description of what you bid on, you may return it.
Other ways to find out about repo auctions is to check your local paper. It will probably be advertised if there is a sale open to the public. You can also contact different banks in your area and ask how they dispose of their repossessions.
The local police department is another source for bank repo cars for sale. Busting up drug and other criminal rings often lead to the impounding of vehicles. As long as the vehicles themselves were purchased and not stolen, they should become available for the public to purchase.
Once you have found a public auction, take advantage of preview days if offered. This allows you to look at the inventory a day or two before the auction. If you are not knowledgeable about bank cars for sale, find someone who is and take them with you. Check the body, and if possible the interior, under the hood and under the car. You probably will not be able to take for a test run, but if you can, definitely do it. Knowing the inventory ahead of time will help you make a game plan for the vehicles in which you are interested.
If you can get the VIN number, you can purchase the CARFAX history report if the auction site will not supply it for you. The report costs between $29.99 for one report to $39.99 for an unlimited amount on that vehicle. The report will let you know reported information such whether the car was in a flood, if the body had been rebuilt due to an accident, and previous owners. Keep in mind that this is reported information, if an owner did the work on their own there would be no record on file.
No matter which venue you are using, make sure you research the Kelley Blue Book value of the bank repo cars you are interested in so you have a figure in your head. Remember to factor in any additional cash outlays, such as for bodywork that you might need. Plan in advance how much you are willing to spend. Make sure you leave your emotions out of the equation. If you fall in love with one particular car, you might be tempted to overbid. Remember that this is an auction, there will be other people bidding, and this will drive the price up.
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