You have as much right as the next person to buy at a repossessed car auction. Will you save money? It all depends. In repossession, your vehicle is taken because payments have been missed, and when it is sold at auction, it must not only cover the payments missed, but also the amount of the entire loan. If the vehicle fails to reach the loan level, you are required to pay the bank the difference. The best solution is to offer to pay the bank its terms on repossession – usually three payments – pick up the vehicle and drive home. Try to stay away from any auction.
For more info, see Default Car Loan: What Happens Next