Repossessed Cars Guide: Where to Find Repo Cars
Lenders’ Repo Auctions. Many lenders auction off cars they repossessed cars when the owners stopped making their loan payments. Some may be willing to sell the cars before auction, which can be more convenient and possibly cheaper. There are websites that provide information for several places or you can call each one directly and ask for the department that handles these transactions. Be sure to get a list of what will be available so you can go to the auction prepared.
Government Agencies. Several different government agencies also do auctions of seized property. These car auctions are publicly advertised, but sometimes hard to find them. Try Gov-Auctions.org for auctions in your area.
Used Car Dealers. Since dealers get inventory at auction, some of them may be willing to look for a repossessed car for you at the auctions they are already attending (for a set fee in addition to the final price of the car) or they can recommend someone who does. This can be much cheaper than paying the typical dealer mark-up.
Online Auction or Classified Sites. Websites like eBay motors have repo cars up for sale, though it’s best to find something local so you can look at the car before you buy and easily pick it up. There are also many sites that have classified ads for repossessed cars. You will probably get a cheaper price at auction, but you will not always have a lot of time to inspect the car or even get a chance to test drive it.
What to Do Before You Buy a Repossessed Car
Research Makes and Models. Find out more about the makes and models you are interested in. Know what years had problems or typical issues to watch out for. Have a general idea of what the price would be for the kind of used car you’re interested in and what it costs to repair common problems so you can reduce your bidding price accordingly. You may want to check out and test drive similar cars to make sure they are comfortable and you like how they handle because you may not get to test drive the repossessed ones.
Vehicle History. Find out if the vehicle history report is available. If not, request the VIN number and go to carfax.com or Autocheck.com to get it. You want to know that the car has a clean title and find out if it has ever been damaged or flooded.
Arrange Your Financing. If you need a loan to purchase the vehicle, be sure to arrange that well in advance of when you want to buy. Some lenders may offer you a loan when you look at one of their repossessed autos, but they may not be able to offer you the best terms. It is a good idea to be pre-approved before you go to an auction or sale. Also, know what type of payment is accepted. Most auctions will only take certain methods.
How to Pick Which Repossessed Car to Buy
Inspect the Vehicles. Begin by looking on the outside and note any major issues. Check under the hood next. If you don’t have much knowledge of auto mechanics, consider bringing a knowledgeable friend along or hire a mechanic to come with you. Listen to the engine run to make sure it sounds right without any ticks or other unusual noises. Get a good look at the interior. Like many used cars, it won’t be perfect, but you want something in decent shape. Test drive the vehicle if you can.
Compare Repo Cars. If you are considering more than one car, note the mileage, overall condition, problems that need to be fixed and any special features of each car to help you decide which to purchase. If you are at an auction, have a price in mind for each one, then if the first one goes too high for you, you will be prepared to bid on a second or third. It is better to get your second choice than paying way too much for your first.