Before making the decision to buy repossessed cars, it’s important to understand exactly what they are. A car may become repossessed by a financing company when the person who bought it stops making payments. When this occurs, the company which seized the car sells it to regain some of their losses. They frequently sell the cars for much less than they were originally purchased for in order to liquidate them as quickly as possible. If you’d like to buy a car but don’t have the money to spend on a new or even a used car at a dealership, you might consider trying to buy repossessed cars. These steps will help you learn how to buy a repossessed car and find one that’s worth your money.
Step 1: Find Out Where Repossessed Cars Are Sold
Repossessed cars are most commonly sold at auctions. You can find local auction houses in the phone book or through an Internet search engine and call them to find out when their next repossessed car auction is. You can also attempt to purchase a repossessed car directly from the bank that repossessed it by calling and asking if they have any that have not been sent to auction yet. Occasionally, repossessed cars will be sent back to the car dealer they were originally purchased from, so a third option is to call some local car dealers and inquire about any repossessed cars for sale.
Step 2: Ask About Payment
If you plan on purchasing a repossessed car from a dealership or bank, they will be able to work with you to create a financing plan. If you’re going to auction, though, you may need to have cash available. While inquiring about the next repossessed car auction, ask which forms of payment are accepted, and make sure you have it ready before you start bidding.
Step 3: Check the Quality
Repossessed cars vary greatly in condition, from “clunker” to “gently used.” If possible, ask about a test drive before committing to a purchase. This is the easiest way to make sure the repossessed car you’re thinking of buying runs correctly. If no test drive is possible, you can at least inspect under the vehicle’s hood and make sure the engine starts. You can also write down the vehicle identification number (VIN) and get a car history check through a company such as CARFAX.
Step 4: Buy Your Car
Buying a repossessed car at auction is typically the same process as any other auction. You get a number and hold it up to keep bidding. If you’re unsure of the mechanics of an auction, the people in charge can give you a crash course so you’re prepared before the auction starts. Once you’ve made the top bid on a car, it’s yours!
With these helpful steps, it’s easy to find the car you’ve always wanted for extremely low prices. Buying repossessed cars is a great way to drive for less.