How to Buy Repossessed Cars
With so many cars being repossessed nowadays, buying one can save you a lot of money. But where can you find repossessed cars and how do you buy them?
Car repossession occurs when finance companies repossess a vehicle from an owner for non payment. For further details on the actual car repossession process, read Why Is A Car Repossessed. Once the vehicle is repossessed, the lender will look to sell the car as quickly as possible, which can mean that the price will often be lower than the going rate – excellent news for any prospective buyer.
Often people who cannot afford to buy from a conventional car dealer will look to buy a repossessed car. Repossessed cars are often cheap and in mint condition. Our step by step guide for knowing how and where to buy them will help you if buying a repossed car is something you are interested in.
1. Where are Repossessed Cars Sold?
There are various methods for selling repossessed cars, depending on where you live. The best place to start looking for one is in a car auction. The majority of repossessed cars are sold in car auctions. On the bottom right of our homepage there are links to local car auctions in your area.
If you are looking to buy repossessed cars online we would highly recommend Government Auctions UK. This site has agreements with auctioneers and police services to sell repossessed cars. It is by far the best option on the web with legitimate deals being closed daily.
Read our guide on Buying Repossessed Cars At Auction for further advice on buying at a car auction.
As well as auctions, it’s also a good idea to get in touch with local car dealers. A good local car dealer will often be attending these auctions and picking up bargains himself. Speaking to them for advice can be helpful and often they may have purchased repo cars themselves and are looking to sell them – this means you won’t have to attend a car auction yourself and go through the bidding process. Their experience can help you.
If you are planning on attending an auction make sure you know what you are doing. Reading our guide on Bidding For Repossessed Cars At Auction will help.
Another option would be to contact the bank themselves. They often have lists of repossessed homes as well as repossessed cars. These lists are made up of repossessed properties and vehicles which are due to go to auction, sometimes you can get access to a car before it goes to auction.
When purchasing from a car auction, its usually preferable to have cash available. Many auctions nowadays accept other forms of payment so it’s worthwhile contacting the auctioneers prior to attending and finding out.
When purchasing from a bank, they may be interested in setting up a new finance plan with you for the vehicle. Make sure you stick to manageable payments – otherwise it could be you facing car repossession.
3. Check The Car
When buying from an auction, it’s very important to remember that cars are sold “as seen”. this means that there won’t be a refund available in the majority of cases, so it’s important to check the car before you buy.
4. Buy The Car
When buying at an auction, it’s very important to understandthe bidding process. When bidding it’s very easy to end up paying over the odds, make sure you have a maximum price in mind for any car and stick to it. Being patient is the key, your car will come but don’t rush it and end up buying a clunker. Remember there are no refunds.
Read our guide on bidding for repossessed cars at auction.