As sad as this is, it does offer the potential for others to get a good deal on a used car. Often, the bank is just interested in getting the amount of money that is left on the note. You can often get bank repo vehicles much cheaper than you could once they make it over to the dealer lot, where they are marked up and sold based on book value and not on the loan amount. If you are interested in purchasing bank repo vehicles, read on to find out where to find these deals and what you need to know about them.
Where To Find Bank Repo Vehicles
Most of the time, larger banks and lending institutions turn over their bank repo vehicles to auction houses that regularly hold vehicle auctions. There may be a preset starting bid because the bank wants to recover the amount of the original loan in addition to any fees it may have incurred during the repossession, such as towing or storage. Still, it gives consumers a chance to get a good deal on a used car, assuming the car is in good working order. Smaller lending institutions may simply feature bank repo vehicles in their own parking lots when it is something that doesn’t happen very often. One way to find bank repo vehicles is to simply call the banks in your area, and ask them what they do with their bank repo vehicles.
Keep in mind that not all these auctions are open to the public. Some are, but some are only open to dealers, so you will need to check that out before you make plans to attend. Dealers will have to provide their dealer license numbers, so for dealer only auctions, regular consumers have no chance of participating. Still, there are always plenty of bank repo vehicles at auctions that are open to the public. Sometimes, these are published in the newspaper, along with the VIN numbers, so you have time to research the vehicle history through Carfax.com, which is a good idea any time you buy a used car.
While you will find many search results for websites that sell bank repo vehicles, many of them are not useful at all and are just filled with ads. Often, though, banks and lending institutions will list their bank repo vehicles on their own websites like the one listed here.
http://www.centurybankky.com/sections/loans-and-mortgages/repos.aspx. For this reason, you will need to check out your local resources, which may guide you to a local website that lists bank repo vehicles for you to compare. Also, check out the following site for excellent advice about buying bank repo vehicles.
http://www.leaseguide.com/Articles/repoauctions.htm. You may also be interested in the following site that lists all types of car auctions, including bank repo vehicles http://www.gov-auctions.org/?hop=leasekit.
What To Look For In Bank Repo Vehicles
Time may be your worst enemy when you are interested in buying bank repo vehicles. For example, you may see a notice in the paper about an auction that will start at a certain time on a certain day. However, often, you will be given little time before the auction starts to look over the vehicles. This is a good time to take a mechanic with you, so you can have any vehicles you are interested in thoroughly checked out. Usually, sales are final, so you want to make sure you are really making a good deal. Also, if the Vehicle Identification Numbers are published in the auction notice, take advantage of the service Carfax.com offers, and order a vehicle history report on any of the bank repo vehicles you are interested in. These reports can tell you if the vehicle has ever been in an accident, sustained flood or fire damage, or even if the airbags have ever deployed. You can find Carfax at the following web address. http://www.carfax.com.
If you are operating from an ad in the newspaper or another publication, you can search vehicle guides to find the book value of any vehicles you are interested in. This may help you know if you are getting a good deal when it comes time to bid on the car. However, don’t go on book value alone, as you and your mechanic will need to inspect the vehicle to make sure that there are no major problems with it. It may be a good idea to set a budget before the auction begins and stick to it no matter what.
What To Be Aware Of In Bank Repo Vehicles
Beware of unscrupulous dealers that falsely advertise bank repo vehicles when they are really selling from their normal inventory. Be sure and check with the Better Business Bureau if you choose to do business with a dealer with which you are unfamiliar. Also, read this notice from the Washington State Attorney General’s office that details the false claims that were made, as this may help you avoid falling into the same trap. http://www.atg.wa.gov/pressrelease.aspx?id=22912
Now, assuming that you really are looking at bank repo vehicles, you want to treat this purchase like any other used car purchase. Bank repo vehicles are not exclusive to any certain type of vehicle. You may find vehicles that are almost new as well as older model vehicles that have been repossessed by the bank. You still need to exercise caution and have them thoroughly checked out by a mechanic.
You may also want to ensure that any bank repo vehicles you are interested in have a clean title and not a salvage title. This is another area where Carfax can be helpful. Although many individuals have no problem buying cars with salvage titles, others don’t want to bother with them, and so it is important that you know up front what kind of title the car comes with.
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