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.

Here are some links to auctions or recommended sites for buying repossessed cars in Wales:

» British Car Auctions Newport
BCA brings more car buyers and sellers together with an enormous range of sales each year including: Manufacturer sales, General sales, Prestige & Performance, 4×4 and Diesel, MPV, Ministry of Defence, and Fleet, Finance & Lease, and more, at 22 UK locations. BCA is the best location for repossessed cars with repossessed auctions all over the UK.

» British Car Auctions Newport Commercials
BCA brings more repossessed car buyers and sellers together with an enormous range of sales each year including: Manufacturer sales, General sales, Prestige & Performance, 4×4 and Diesel, MPV, Ministry of Defence, and Fleet, Finance & Lease, and more, at 22 UK locations.

» Clwyd Auction Centre
Ten minutes from Chester, on a 4 acre site, we are the largest auction centre in North Wales. Car auctions, each Wednesday and Saturday. Commercials sales including repossessed vans held the first Monday in the month.

» Merthyr Motor Auctions
At MMA we are renowned for the selection of direct fleet cars and commercial vehicles, including vans, trucks, tippers, minibuses and ambulances that we auction annually. Over 2500 vans, repossessed commercials and cars auctioned each week. Auction days, cars, 4×4 and light commercials, Monday, Wednesday and Friday. Heavy commercials, Monday.

» Newport Auctions Ltd
Three sales a week at our modern facilities, which include an on-site cafeteria, 2 miles from the M4. Hundreds of cars in every sale with a wide selection of franchise dealer part exchange vehicles and finance repossessions. Auction days –Monday, Wednesday and Friday.

» Swansea Motor Vehicle Auctions
Our customer base is wide, ranging from PLC companies, finance houses, contract hire companies, main dealers and many others. We offer a wide range of cars and commercial vehicles. Sales days – Wednesday and Saturday.

» Wilsons Auctions Queensferry
Wilsons Auctions Queensferry offer a complete service to the buyer or seller of used repossessed cars and light repossed commercial vehicles. The majority of our vendors are established franchised dealerships and also local and national fleets. Auction days – Tuesday and Friday.