It can be a great way to save money If you can buy repo car from a trusted source. In many cases, you will buy repo cars at a lower cost than the real market value. Buying repo cars, however, can be difficult, particularly if you don’t know how the repossessed car trade works. We have put together a quick guide to help you find and buy repo cars safely and at minimum cost.
What Is A Repo Car?
Repo cars refers to cars that have been repossessed where an auto lender can take you’re your vehicle’s possession, sometimes without prior warning or court permission. Normally, car repossession occurs when you fail to pay your loan payments.
A repo car title is the the paperwork from the lender that declares that the car was repossessed. Ideally, the dealership that sells the car should flip the title into their own name.
Daily, many Americans fail to pay their car loans or leases and, as a result, their vehicles become repossessed cars. Since financial institutions want to recoup at least a portion of their money and avoid storage fees for their car repos, they try to sell these vehicles at used car auctions and online car auctions as soon as possible.
Where To Find Repo Cars For Sale?
The biggest aspect of purchasing repo cars is that you use extreme caution. Lenders repossess vehicles when the car payments have been delayed and several missed payments.
In an effort to get paid, most borrowers will negotiate with the owner as they depend on the interest to make money.
you can find different option for buying repo cars out there and most popular are:
1. Buying Repo Cars From Banks And Lenders Directly
Buying repo cars directly from the bank or creditor is an option indeed. no middle men no extra commission or fees, Your bank or credit union sometimes allows you to look at their repo inventory data, which lists all the repo cars for sale that they have repossessed and want to sell. The lender often only wants to recover their money, so this way you can get very good deals.
To buy a bank repo car directly from the source, just make a bid on the car you would like to have. The bank may not accept your bid right away and can wait for other dealers and other buyers to hear other offers and bids. It may take a few weeks for this part of the process. If your bid is the best the lender can consider, you will usually have the opportunity to look over the car before the paperwork is charged and signed. Make sure you do a full car inspection of your vehicle if you don’t know much about yourself.
2. Buying Repo Cars From Online Repo Car Auction
You can find many online repo cars auctions these days that are specialized in helping lenders get rid of their repossessed car stock. Look for companies that move the inventory, without taking ownership, from lender to buyer. Dealers who buy and move repo cars before reselling them will incur additional expenses that will inevitably fall on the buyer.
Operating with an online repo car auction has the advantage that these car auctions also set a standard for the car’s condition. We may even take the initiative to clean up and document each repossessed vehicle to ensure that the repo cars for sale run well before listing them for sale. Another advantage is that since online repo car auctions do not own the cars, they feel no great pressure to add a high margin to the price tag. In general, they would prefer to rapidly move a lot of inventory at a small profits, rather than taking the time to make a big profit on each repo car individually.
For example this 2018 Cadillac Escalade is being sold by progressive casualty insurance at a fixed price of 38,000 Dollars. That is 38,719 Dollars less than its actual value or 50% off the price! and if you decide to join and compete with other bidders you can get it for even less! the car is in clean title and inspection estimate it needs a little more than a thousand dollars to fix some minor issues.
3. Buying Repo Cars From Police And Government Car Aucitons
The advantages of this venue are that in most cases you will look up stock in advance and decide on your highest bid. Due to the lack of intermediaries involved, you can also get better prices. But be careful not to make you spend more than a car is worth the thrill of bidding.
One of the disadvantages of the governmental auction setting is that at the time of sale, vehicles can be rusty and in disrepair. They may be full of trash, they may have cracked tires, or they may be completely useless. Once you make the deal, any problems are your responsibility. It can also be hard to win against the pros.
4. Repo Car Dealers
You can do that directly Online from you laptop or smarphone, or you can find a used car dealership to purchase the vehicle.
Some lenders prefer selling repossessed cars to companies that specialize in the sale of these cars. This way, lenders do not take ownership of the car after reclaiming it. Used car dealers also buy repossessed vehicles. The dealership will usually clean the car up for you, add some extra touches like new tires, body repairs, and sometimes do engine repairs. Through going this route, you may be able to get a 1 month warranty or more, mechanical support, and more.
But at a premium, all this comes. Knowing that the car dealer bought the car at a repo car auction doesn’t change the fact that the dealer still wants the vehicle’s highest possible profit. The dealer had to pay for transportation, repairs, details, titling and other charges that be ready to see behind the price tag.
Benefits of Buying Repo Cars Online
With the tools and services available on the Internet, you can find repossessed cars in your area and across the country. Many offer top-quality vehicles such as Ferraris, Bentley and Cadillacs , as well as other items such like boats, RV’s, motorcycles and more for thousands less.
Of course, the unknown condition of the cars is one reason why they’re so cheap. Findin a repo car that was worth $6,000 for just $1,500 because it had a blown engine or frond end damage. And you can pay another $1,000 or two to fix it and you will be still on a good deal. Those are the sweet deals we all look for!
- A great way to buy a car at a price so low: it almost doesn’t make sense is to buy a repo car at 40% of its real value. What this means is that when someone can’t pay for something or do something illegal, various car can be seized or “Repossessed” and sold at local government auctions. These cars often times get to as high as seventy percent discount and are priced to sell like that.
- Buying Cars in good condition: This largely depends on the previous owner, but it is more normal than one would expect to find a repo car in great shape. You may even be able to retain the manufacturer warranty in the case of new year model cars!
- Different vehicles and options: listing thousands of used cars, trucks, motorcycles, boats, RVs and much more. With the help of search filters you can sort vehicles by model, year, price, quality and region weather you are looking for clean run and drive cars or salvaged ones you will always find a repo car for your interest.
- Car Inspection Available: in most car auctions there are no guarantees what are you getting – You get what you see! But with online auto auctions like Bid Export you can do a full car inspection before buying or start bidding with other competitors like yourself. Car inspections include and not limited to: A lot of extra pictures, Test drive of the vehicle (if possible), check all fluids, full damage report with missing parts and their OEM numbers and many more custom checks.
What To Look For When Inspecting A Repo Car for sale?
Repo cars are usually sold as-is, there fore a full car inspection would be considered important and a tremendous advantage. If permitted, bring an approved inspector with you or send one as a proxy to get an in-depth look at the car. In case you are using an online auction like Bid Export, you can ask for a professional car inspection.
If you have the required knowledge and experience and decide to inspect the car alone and are allowed to do so, start by looking at the car body and paint, start the engine and listen for any strange noises or knocks. Do not forget to inspect electrical components such as power locks and windows, lights and other major modules. If you can, check the levels of oil, transmission fluid to check if last owner was taking good care of the car regularly. Visit Bid Export’s car inspection full guide for more tips and guidelines.
How To Buy Repo Cars With Bid Export
Now that we have discussed the important aspects prior buying a repo car, you are probably asking yourself but how can I actually buy one?
The easiest and most convenient way to buy a repo car is using online services of a repo car auction.
Step 1: Sign Up
All you need is a 1 minute registration to create yourself a personal account with the correct information in order to begin bidding or purchasing in online auto auction. The registration is simple without any further complications and is free of charge.
Step 2: Set Your Budget Right
Once you have browsed the inventory list, it’s time to narrow your potential choices down to something more manageable. One easy way to scale down your list of vehicles is to determine your budget range. This will automatically exclude some vehicles off your list.
Remember your budget should include the following: the winning bid price, any auction fees, any government fees (such as title, tags, registration), and any immediate repair cost needs.
Step 3: Bid or Buy
With the help of our search filters, you are connected to thousands of listed repo cars for sale. You can optimize the results to your preferences. Whether you are looking for a car, truck, motorcycle, boats or any other vehicle type liste you can either start bidding to win it or just buy it now for the listed fixed price.
Learn more how to bid or buy in our online car auction.
Step 3: Payment
All payments must be received no later than 1 day after the sale date. Please note that US Dollars are the only acceptable currency for payments.
Full payments for successful purchases must be sent by bank wire transfer or with an online payment method. You can find wire transfer details in your account Bank Deposit Page
Step 4: Shipping & Transportation
All the repo cars for sale listed on Bid Export car auction, can be fully inspected and transported to your desired location. All vehhicls are insured in case of certain incidents, but we also offer additional insurance at an additional cost.
Check more about Bid Export Shipping Services and how you can transport you car from bid export Florida car auction.
Why Would I Buy A Repo Car?
Just think of it.. buying a car at half price that works just fine, not because any damages but because of financial problems with previous owner and creditors. We are not talking about buying cars that still has outstanding payments on it in the name of a previous keeper. We are talking about car and other vehicles that has been already sent to car auctions to be sold and the financing company or creditors do not have any financial interest in it and would sell it in a car reserve price they set to cover any further losses keeping the car possession to their selves.
However, it’s sometimes in the finance company’s interest to get rid of a car even below its reserve value. It can sometimes make sense to sell it at a slight loss, then at least everything is over and done with and the company no longer has to worry about the car not selling and losing further value through ongoing depreciation. and here comes the sweet deal for you as a buyer, because you won’t be bothered with such concerns.
It is indeed a good deal to find a clean repo car and buy it, it will save you thousands of dollars most of the times and you will get much higher value for the amount you have set to spend on a car!
Find Repo Cars For Sale With Bid Export
BidExport.com is authorized and licensed online auction that was shaped by individuals who have numerous long stretches of involvement in the US auto sales industry. Our team and representatives have been filling in as directors in enormous used cars dealerships and strategic logistics organizations.
Bid Export began 14 years back with a solitary used cars dealership in Los Angeles CA. Presently headquartered in Miami, Florida as worldwide leader in online car auctions, and a premier destination for the resale of the best used cars. With more than 150,000 listings you can find your dream car, or supply your auto business with both clean and salvage vehicles for prices much affordable than buying from dealerships.
