Here is an ad I liked featuring one of my favourite cars, the BMW M5. The model shown is the older version. The BMW M5 would be a highly recommended car to buy from any repossessed cars auction.
Archive for the ‘Latest Information Posts on Repossessed Cars’ Category
Video: BMW M5 – Repossessed Cars
Wednesday, June 3rd, 2009Car Repossession Example Scenario
Wednesday, May 27th, 2009
Below is an example scenario which happens to many people when their car is repossessed.
A) Car value £25,000
B) Deposit £5,000
C) Loan Amount £20,000
D) Repayments £5,000
E) Still Owed £15,000
F) Car Auction £8,000
G) Deficiency £7,000
Explanation
A) In this example, £25,000 is the sale price for a new car.
B) The buyer puts down £5,000 deposit.
C) The loan amount borrowed from the finance company is £20,000.
D) The buyer begins to make repayments, lets say for example they make £5,000 worth and then run into financial difficulty and are unable to make further payments. The lender goes ahead and repossesses the car.
E) The amount still owed to the finance company is 15,000 after the car is repossessed.
F) After repossession, the finance company opts for a quick sale through a car auction and sells the repossessed car for £8,000.
G) The Deficiency is the amount the loan company will look to recover after the car has been repossessed. In this case the deficiency amount will be £7,000.
If your car has been repossessed in this way, you can expect the loan company to chase you in order to recover the deficiency amount. you can also expect your credit rating to be affected if repayments are not made or even face bankruptcy.
Bidding For Repossessed Cars At Auction
Saturday, May 23rd, 2009
When attending a car auction, there are certain techniques which can be implemented to ensure you get the bargain repossessed car that you have been looking for:
1. Take a Trial Run
Bidding at auction is not necessarily straightforward for a first timer. We advise going on a trial run by attending the auction to observe and see how it works. This will give you an idea of how much time you have to view the cars, regsitereing and getting the catalogue and most importantly how the bidding process is carried out.
2. Look for Quiet Auctions
Auctions attended by a large number of people are often the hardest to pick up a bargain. It doesn’t take a genius to see a bargain and the more experienced car traders will be looking to snap up those cars too. British Car Auctions and Manheim Car Auctions are both well known auctions all over the UK selling repossessed cars, so attending these would be the best option for the inexperienced. We would advise to check the auction times and go for a weekday which will tend to be quieter. Buying right at the end of the year is also recommended as car dealers tend to slow down on their buying during this period, so the auctions tend to be quieter.
3. Check the Car
We advise taking a mechanic with you or someone who knows about cars. Check the car you are interested in properly but remember that time is limited and you probably won’t get as good a chance to check the car as thoroughly as possible. Look for any signs that the car has been in an accident, our guide for buying repossessed cars at auction will help you. When they bring the car forward look for any signs of smoke when the engine is started, or listen for any abnormal noises.
4. Look Like a Car Dealer
This may sound trivial but always remember that genuine car dealers are extremely experienced and attend auctions regularly. They see the same faces and so can recognise a new one. Often they can use tactics of bidding with no intention of buying in order to get newcomers to keep increasing bids and end up paying more. There is no need to attend dressed up looking like Del Boy but then its always important to know that its rare to see a car dealer in an expensive suit either so try and find some middle ground.
5. Bidding
This is the most important part of the process. We would advise standing in the trough with the other car dealers, rather than the stand seats where the private buyers usually sit. When bidding, raise your catalogue for your first bid to get the auctioneers attention, a nod will be sufficient for further bids. If you attend the auction with someone else, make sure you don’t accidentally start bidding against each other, this happens more often than you would imagine, so its best to decide on one person for bidding.
6. Have a Maximum Price and Stick to it
When attending auctions, it is very easy to become interested in other cars and forget the one you went for. Make sure you stick to the car you like and also stick to the maximum price you set yourself. Anyone can win an auction, you just have to keep bidding, the secret is knowing when to stop, after all there will be more auctions so don’t feel upset if you are outbid, the nxt auction is only a few days away.
7. Fees
Remember that when you buy any repossession car, auctioneer fees will also need to be added to the price. These are usually set at 3% of the sale value and are payable upon purchase. Car auctioneers usually don’t accept credit cards but debit cards are allowed. Inform your bank beforehand that a large payment may be leaving your account on that particular day. This will save you hassle while the bank authorises the transaction. Cash is the preferred method of payment but there is usually a cash limit of around £10,000 due to money laundering laws.
8. Remember There Are No Refunds
Its important to remember when buying repossessed cars at auction, that there are no comebacks if there is a problem, so although you may be able to pick up a bargain, its important to follow these steps and not end up buying a lemon.
Repossessed Cars Video – BCA
Sunday, May 17th, 2009
Brief video illustrating what a car auction is actually like. Car auctions are the best place to buy repossessed cars at a cheap price. Read our auction guide for further information.
Repossessed Cars – Buying at British Car Auctions
Sunday, May 17th, 2009This video from British Car Auctions, gives you an insight on what actually happens at an auction and how the bidding is done. Car Auctions are a great place to find repossessed cars and British Car Auctions are a nationwide auctioneer.
When attending an auction we would advise to always have a maximum bid in your mind and stick to this figure and don’t be tempted to go over it. There are plenty of other cars available don’t be sucked into overbidding on one. To find out more about auctions feel fere to read our free informational auction guide so you know which is the best repossessed car to buy.
Guide for Buying Repossessed Cars At Auction
Thursday, May 7th, 2009
When buying at a repossessed car auction, there is much more to do than just assessing the appearance of a car you are interested in. Further research is required before a purchase is made. Car auctions are widely regarded as being the best place to pick up second hand or repossessed cars at the best price, but it is also very important to note that people often end up paying over the odds or picking up a repossessed car which gives them mechanical problems.
For this reason we have put together a comprehensive guide to buying a repossessed car at a car auction near you. This will help to assist you especially if you are attending your first auction. If you are going to your first auction, we would recommend attending with someone who has been before and is familiar with the process or we would recommend only observing on the first occasion. Remember that casr are sold “as is” at auction, which means that the vehicles will be sold as they appear on the lot and once the highest bid has been made, it is binding.
Below is a guide to purchasing a repossessed car at an auction:
1. Take A Mechanic With You
It is advisable to take a car mechanic with you when attending an autcion, particularly if your knowledge on what’s under the bonnet is limited. The expertise of a mechanic could save you lots of money in the long run so even paying him a small amount could help you pick up a good deal. It is important to check the car from top to bottom especially the engine. The majority of auctions do the utmost to make sure the repossessed cars on offer are at a high standard and are reliable. However, it is important to note that some vehicles which are below standard do make it through so it is important to make sure you avoid these kind of vehicles.
2. Study the Vehicle History
Before making a bid you should make sure you study the history of a vehicle. Auctions are often made up of cars which have previously been in accidents, and these are the cars which are usually being sold cheaper than the market rate for the specification of car. It is important to note that these cars may cause problems by not running properly especially if they have been in a major accidents and repaired. Slightly accident damaged motors can often prove to be a bargain so try to keep an eye out for these.
3. Have a Price in Mind and Stick to it
Do not bid too much for a car. It is very easy to go above market price when bidding so we would advise to calculate a price for a vehicle you are interested in and don’t go above this price. Repossessed cars often get overpriced when there is a bidding competition. In these cases we would advise to not get involved and let the winning bidder take it. If the price becomes too overinflated it may be better to look at other options.
4. Check the Pedals and Steering Wheel
A very simple tip when buying at auction or buying any used cars is to check the pedals. These are usually not replaced or changed so it can often be a giveaway when the exterior of a car has been modified or repaired to make it look almost new. If the pedals are worn and the outside of the car looks brand new then you know that something has been changed. It is recommended to check the paintwork thoroughly and also have check the steering wheel. Move it back and forth, any clunking noises and this is a car we would not recommend you buy.
5. Carefully Examine the Frame
If a car has a damaged frame, this would indicate that this is a vehicle which has been involved in a major accident at some point in its history.
6. Run A Finger Into The Edges
When examing the car we would advise to run your finger into the edges of the paintwork, rough spots indicate that the car has been fixed after being in a major accident. These rough spots appear when masking tape has been applied to the car bodywork during a paint job. Also look for changes in shades of colour. New resprays may have a slightly different shade of colour – another giveaway that a car has been repainted after a collission.
In summary its important to not rush into buying something you are not sure about. You should have a good feel about the car and make sure the price is right. If its something you are planning on driving for a while why push yourself into buying a car at the first auction you attend. Would it not be better to attend a few auctions, learn the process and wait for the right car at the best price to come along?
Video – What is Car Repossession?
Tuesday, May 5th, 2009Video – Hip Hop Lil Kim’s Bentley Repossessed
Tuesday, May 5th, 2009New York Hip Hop Artist, Lil Kim has to deal with the car repossession bailiffs.
Fastest Car Repossession Ever!
Tuesday, May 5th, 2009Look how quickly your car can be repossessed. You turn your head and your pride and joy is gone!
