With our economy in the state it is in, vehicles are being repossessed by banks left and right. The most common cause for repossession is when the signer and co-signer are unable to consistently pay the car payment. With the rate of unemployment at the highest in years due to downsizing and layoffs, some people cannot continue to pay a monthly car note when they do not have a steady income. Once the borrower has become delinquent for over two months, the bank will either work with their customer to catch the payments up, or they will have no other option but to repo the car. Conditions within the loan agreement stipulate if the borrower has defaulted on the loan, the bank may take possession of the vehicle as they are the title holder of the vehicle until the loan is paid off. This means the bank legally owns the vehicle. Because of the increased amount of people defaulting on loans, and the higher difficulty there is to get an auto loan, not only dealers are having difficulty selling cars, banks are as well.
Are you familiar with purchasing bank repossessed cars for sale? Nowadays,
with the world in an economic
slump, it is a buyer's market. This
allows savvy consumers to purchase a slightly used car from bank
auctions for a
fraction of the price found at the dealer.
For consumers who are in the market for a used car and have the
hand, bank repossessed car auctions may be the place for you to find a
new vehicle for a very low price.
Once a bank repossesses a vehicle, typically they will contract with a car dealer to auction to vehicle for sale. Auctions will be advertised for the public to attend and bid on the bank repossessed cars. At the auction there will be a minimum reserve set that the bid must reach before the vehicle is sold. Cars that do not reach the minimum reserve won't be sold. These are necessary so that the bank can make back a portion of their lost money. The reserve price will usually still be much lower than the actual retail sales price of the car, so if you are in the market for a used vehicle, these auctions may be a great choice for you.
Details to keep in mind before deciding to bid on a car are to always inspect a car before placing a bid on it. There have been times where buyers have won an auction only to find the vehicle has mechanical and interior defects. The only way to avoid this is to make sure and thoroughly look through the vehicles you are interested in before bidding starts. Bringing a valuation guide such as Kelley Blue Book is also a good idea. This tool will allow you to review each vehicle's retail and wholesale value. At an auction like this you want to pay no more than wholesale value for a car.
Now the big question is, where can I find a government or public auction that I can buy a repossessed car? These auctions usually occur at car dealerships and are widely publicized before the actual date. If you are searching for a public auction, selling bank repossessed cars, first try your local newpaper to find classifieds posted in the events section. If there are none there, you can also search for auctions through popular websites such as Craigslist.com. You may even be able to locate vehicles posted on craigslist that are bank repos for sale with pictures and detailed information on the car. Another approach to locate an auction would be to call different banks and ask for the department that handles repossessed vehicles. Although it is unusual, you may be able to get some good recommendations from the bank itself of where they send their vehicles being auctioned and other contacts that may be helpful for you. Lastly, there is the option of using online services that's specialty is researching government auctions and posting these listings. The great thing about web sites that offer these services is that they can give you updated information on auctions near you and also give you listings of the year make and models that will be included in the auctions. Knowing the vehicles that are being sold at the auctions before you go can save you lots of time and possibly money. This will enable you to research the cars wholesale valuations before even attending the auction, that way you are coming in with an accurate price range. The downside to this option is that these online services are generally not free and they will cost to subscribe and access listings. Even though this service does cost, if you are serious about purchasing a bank repossessed vehicle, paying for this fee could truly prove beneficial, because it will save you much more in the long run.