Jun 11
2
When it comes time to replace their car, or purchase an additional car for a son or daughter, many people find that repo car auctions online allow them to obtain the car they want at a price that is less than they might pay at a used car dealer. Here’s why:>
Many people find the allure of a nice, and often expensive, new car too hard to pass up. After purchasing it, sometimes people have trouble making the payments. After missing a payment, usually the financing company will contact the buyer. The temptation on the buyer’s part is to ignore or try to evade the finance company’s calls. Then the finance company has no choice but to repossess the vehicle to recoup their loss
Now the finance company doesn’t make any money on a vehicle that is just sitting in storage somewhere. So often you will find repo car auctions online where these types of cars are being sold, usually at a price below the ‘book’ value. The book could be the Kelly Blue Book, or often the NADA book price is used. (Note that the prices between various ‘books’ can be different for the same vehicle, and it is not uncommon for used car dealers to use one book when quoting a price to sell a vehicle, and another book when quoting a value on a trade-in).
Let’s look at an example. Suppose you’re looking for a Subaru STI for sale. This sport compact car retails new for around USD$30,000. It often attracts young male buyers who may not be in their peak money earning years. After purchase, they may have trouble making the payments. Sometimes a person loses his or her job and cannot make the payments. If something is not arranged with the finance company, the car may be repossessed.
So you might find the Subaru STI you’re looking for in a repo car auction online. This auction may give you the opportunity to purchase the turbocharged 300 BHP STI at a price much lower than you could find elsewhere.
Naturally, as with any used car purchase, a thorough inspection by a qualified and competent mechanic knowledgeable about the specific vehicle being purchase is advised. People vary in the amount of attention they give their cars. Some people never miss any of the scheduled maintenance in the owner’s manual, whereas other people take it as more a guideline and put off having some items performed. Transmission fluid and differential oil changes are common ones that are missed.
Also, since the Subaru STI is a performance oriented vehicle, it sometimes invites spirited driving by the owner, if not downright abuse. Sometimes people will raise the engine RPM in the car and then release the clutch quickly, which is often called ‘dumping the clutch’. In a typical front or rear wheel drive vehicle, this action would simply result in wheel spin. But since the STI is all wheel drive, dumping the clutch introduces tremendous forces on the drivetrain components. Sometimes the differential gear teeth get chipped as a result