Repossessed Car Auctions: All You Need to Know

“The cars we drive say a lot about us.” - Alexandra Paul, American actress

Today, repossessed car auctions are one of the best options to get a good deal on used cars. Buyers can save a huge sum of dollars on such auction cars for sale many of which are still in terrific condition. Owners turn in these cars because they are no longer able to make their vehicle payments to the financier. Most of these vehicles have not covered more than a few thousand, sometimes hundred, miles and sustain only minor damage or wear and tear.

Payment Issue With Car Owners

With more than a million vehicles repossessed each year in the U.S., public car auctions add variety to what bidders can bid on. A lender repossesses a car when the owner is unable to make payments, and one of the fastest ways to regain the loan money is by auctioning off the vehicle. The bank in no way expects to receive the actual value of a repossessed car on resell. Prevailing economic conditions also influence when people buy and return their vehicles.

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Vehicle Inspection

Any repo car auction opens bidders to thousands of vehicles of different makes and models. However, one downside to these auctions is that bidders cannot test-drive the cars. The best they can do is run a thorough inspection of the car they intend to buy including hear out the engine sound. In case a buyer is not knowledgeable about these repossessed cars for sale, he can hire the services of a professional mechanic to help him with the inspection.

Sold As Seen

Even though some auction sites provide warranties on repossessed cars, in most cases these vehicles are ‘sold as seen,’ ‘sold as is,’ or ‘buyer beware.’ That means any damage or repairing needs that a buyer didn’t notice during inspection but discovers after purchase will be his sole responsibility. Again that’s the reason why it makes complete sense to attend these auctions along with a trained mechanic.

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Information on Repo Cars

To play it safe, a bidder must obtain detailed information on repo cars from previous owners or auctioneers before buying them. This will assist buyers in forming a better idea of the price range within which they can bid on these vehicles. Interested individuals can attend both online and on-premise repo car auctions these days.

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Bottom Line

Generally, repo cars are affordable, low on miles, and found in good conditions. Lenders prefer to get rid of these vehicles as soon as possible, and thus they are always open to accept the minimum acceptable bid amount. These class of vehicles are a better choice than some used and beat-up cars for which a buyer may need to do a VIN check before making up his mind.

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