Posts Tagged ‘avoid car repossession’

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Repossessed Cars Info

Tuesday, August 2nd, 2011



The majority of Americans and Brits rely heavily on their vehicles. This involves driving to and from work, picking up children from school, visiting your local store for food shopping and many other day-to-day activities. It’s something we take for granted, in reality life without your car can prove to be a huge burden. If you are unable to make repayments on your car, it may become repossessed. This can also happen for failure to make car insurance repayments in certain US states.

Once you sign a purchase contract for your vehicle, the finance organisation or creditor has rights on the car until all payments are made or when the contract ends. This contract will vary from state to state but typically a failure to fulfil the contract could result in car repossession. The creditor is not under obligation to provide any advanced warning and they have the ability to take the vehicle at any time. This can be carried out without a court appearance. The creditor also has the right to make a sale of the vehicle to a third party in order to recoup losses. Often this may be done at a cut price in order for the finance company to recoup losses and use the income against your debt. You will then be liable to pay any outstanding money following the vehicle sale. This figure will be the purchase price minus any payments you made plus the amount recouped following the sale of the car.

Repossessing the Carrepossessed cars
Depending on the state you are in, the law will vary on seizing your car. In a number of states, the finance company has the right to take the vehicle as soon as a payment is defaulted. This often comes as surprise to many car owners who go to drive the vehicle but then find out that the car has actually been repossessed.

Many creditors are more sympathetic and they will look to try and assist you based on your circumstances. It could be that they decide to provide you with a new payment plan, which meets your requirements. It’s important to get any new payments plans in writing from your creditor as a verbal agreement may not stand.

In the majority of US states, the finance company has the right to come on to your property to repossess your vehicle. This can be carried out without them having to provide you with any advanced notice. The creditor must follow guidelines when carrying out the repossession, they are not able to use any physical force or threaten to use force. They are also unable to remove the car from a garage which is closed without obtaining consent from you.

The creditor has the right to claim for any expenses incurred as additional charges following a repossession, however during the repossession if the guidelines are not met and the repo man carries out a “breach of the peace” then the creditor may be liable to pay penalties or provide compensation if there is any damage done to you or your property.

The creditor also has no rights to any of your personal possessions which are left in the vehicle following repossession. Often a repo man will provide an inventory of items which were in the vehicle when it was repossessed. Failure to recover any items can allow you to claim for them back, a lawyer may be able to assist with this process.

In certain states, creditors fit a vehicle with a device which will disable the engine rather than physically repossessing the car. This is often considered as being the same as a repossession.

Selling Your Repossessed Car
Once a car has been repossessed, the finance company has the right to sell the vehicle in order to recover losses from the loan amount. The car can be sold privately or often will end up in a public auction. This is a good place for people to buy cheap repossessed cars. In certain states, the creditor must provide you with information on what will happen with the vehicle once it has been repossessed. Certain laws also require a finance company provides you with details of the location and time of the repossessed cars for sale so that you are able to go to the auction and take part in the auction process. This gives vehicle owners the opportunity to bid for their vehicle following the repossession. Certain states operate with consumer laws which provide an owner with the ability to “reinstate” their loan by paying any defaulted payments plus any costs incurred from repossession of the vehicle. This means that you have the ability to buy back your vehicle and then continue making repayments as per the contract.

It’s important to remember that the creditor has an obligation to obtain a fair price for a vehicle once it is sold. Failure to sell a vehicle at a reasonable price can give you the opportunity to make a claim against the creditor, but they also have the right to sell it at market value, don’t expect them to get a high price. Often the price will be low as they look to make a quick sale.

Advice
Resources such as Repossessed Cars are an excellent source of advice and free information in order to help you avoid repossession. It’s important to remember that a creditor is much more likely to try and help the repossession taking place if you speak to them early on. Once the vehicle has been repossessed, it is always much harder to get them to cooperate. They may be willing to provide leniency or help you and prevent car repossession, however you can expect your credit score to be affected.

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Finding Repossessed Car Auctions UK

Tuesday, May 17th, 2011



During these hard times brought about by the worldwide economic downturn, the virtue of the moment has to be frugality, something we seem to have lost way back during the middle ages or the great depression of the 1920s in the U.S.A. Since a car purchase has to be one of the major decisions in one’s economic life, it may be wise these days to consider purchasing repossessed cars and joining repossessed car auctions as a most practical and smart alternative.

What is a car repossession anyway? Whenever a car owner defaults or fails to make on-time loan or lease payments for whatever reason, the bank or finance company may opt to take back or repossess the vehicle, a standard clause or stipulation written into every financing contract. There will be some grace period allowed but eventually when it’s clear that the buyer cannot catch up on his installment payments, it’s repossession time – the bank or lending company’s repossession procedures take over. The rest, as they say, is history. The repossessed car is sold to recover the loan balance, including towing and storage charges,as well as professional fees for the repo company that recovered the vehicle. Where does the car end up next? More than likely in a repossessed cars auction.

Many who have taken the opportunity will swear that visiting auctions could mean savings of as much as 80% on one’s tight budget. What is more, with the convenience of online shopping nowadays, looking for repossessed cars and joining car auctions have given new meaning to the term “let your fingers do the walking.” Now, it’s more like your fingers doing the “clicking” on your computer mouse.

Where to find repossessed vehicles? There are of course any number of ways. Going online nowadays is the most convenient. If you are looking to buy repossessed cars on the internet 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. Or, you could also simply contact your neighborhood bank, finance companies, credit unions in your area or even some local auction company and ask about auction locations, rules and schedules.

Another advantage of dealing with repossessed car auctions is that you will invariably be dealing with reputable banks and financing companies. Hence, you will be spared the proverbial “hard sell” that used-car dealers are notorious for. These finance institutions have a reputation to protect and are not likely to engage in cheap tricks just to turn in a fast buck.

It goes without saying of course that as with any major purchase, the buyer has to proceed with caution. Caveat emptor is as old as the Romans – let the buyer beware. Since you are buying a used item, a highly complex machine at that, you have to know a little bit about cars or consult with somebody knowledgeable. There will not be the usual dealer or manufacturer’s warranties that usually go with a brand-new purchase. It’s strictly an “as-is, where-is” deal or a take-it-or-leave-it affair. So do your homework on repossessed car auctions. Frugality does not mean getting a bargain for bargain’s sake. After all, you don’t want to go home being penny-wise and pound-foolish.

Visit our article resource and find further free information on repossessed cars.

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How Much Can You Save Buying Repossessed Cars?

Thursday, May 5th, 2011



Many buyers become wary when searching for repossessed cars for sale. Often they think the car will be in poor condition and not maintained. Sometimes this can be true, but on other occassions a repossessed car will be in pristine condition. When buying a repossessed car it is important to think about who the owner was before it was repossessed. Often they will have been professionals, company executives, salesmen and other individuals in highly paid employment. They may have seen the car as their pride and joy, carrying out regular dealer services, and paying top dollar for the maintenance of their vehicle.

Cars like this will be listed hundreds or even thousands of dollars below the market value. Yes really that much!

Remember the bank or finance company which repossessed the car will be looking to recover debts as quickly as possible. Selling the car at the highest price possible is not a priority for them. Instead they will aim to recover the debt as quickly as possible. This means a quick sale of the vehicle at a cheap price. Repossessed cars will always be sold may below the list value. There are many documented cases where a bank has repossessed a car with a value of £10,000 and then sold the car for £7000.

Knowing where to buy repossessed cars is the first step. The majority are sold at car auctions. The bank will repossess the vehicle and then sell the car on via a car auction. Auctioneers are cash ready and so the bank will see this as an attractive avenue in order to get money back quickly. If the auction will not pay the finance company a lump sum up front, it is much more likely that the auctioneer will be able to auction the repossessed car quickly. This huge saving will ultimately be passed on to the someone buying the repossessed car.

Sounds simple? In reality actually going ahead through this process is not so straightforward. Knowing what to do in the auction is extremely important. Inexperienced buyers often end up paying a lot more than an experienced buyer. Knowing how to succeed in auctions can help you make massive savings.

Read our guide on buying repossessed cars from auction to help you with the buying process.

If you are looking to buy repossessed cars on the internet 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.

One of the most essential parts of the repossessed cars buying process is being able to identify a car which is in good condition. Low mileage is not the only factor which determines whether a car is in good running condition. The main auction companies often provide you with the opportunity to check the vehicles prior to auction as well as history regarding where the car came from – this may be details of whether it was repossessed or a stolen recovered vehicle. If this is something you arent too sure about, look for a mechanic or someone who knows about cars to take with you to auction. Paying a small amount for their expertise could be hugely beneficial when looking to save hundreds or even thousands!

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How To Stop Your Car From Being Repossessed

Thursday, February 17th, 2011



The right of owning a vehicle is available to anyone, but it also comes with responsibilities. If you purchase a car on finance, what’s important is that you make your repayments on time. If you don’t then the car repossession man will turn up and repossess your vehicle, which can result in extra costs as well as bad mark on your credit rating.

Many of the brand new cars these days are fitted with a GPS tracker system which is embedded in the hardware of the car so if you did end up not paying your outstanding repayments and then try and hide the car from the finance company, the repossession man will have the relevant GPS tracking software to enable him to find the vehicle and remove it from you.

When buying your vehicle, check the repayments and make sure they are within your budget. Remember that circumstances can change easily, particularly with today’s economic climate, so consider your purchase carefully before going ahead and with your loan agreement. Make sure you make your repayments in a timely fashion, in order to avoid repossession.

The best advice is to save up your money and outright buy your vehicle. Maybe you might have to consider buying a car which isn’t the one you wanted ideally but it means you can avoid car repossession.

Read our article on Avoiding Car Repossession or How to Dispute a Car Repossession.

Alternatively, visit our Repossessed Cars Homepage which will provide you a starting point on many articles regarding car repossession.

Finally, if you have arrived at our site and are looking to buy a repossessed car, then visit our Repossessed Cars Buying Guide.

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Car 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.

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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.

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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.

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Repossessed Cars – Buying at British Car Auctions

Sunday, May 17th, 2009

This 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.

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Repossessed Cars: How to Avoid Buying A Stolen Car

Thursday, May 14th, 2009



Last year, 350,000 cars were stolen in the UK. If you were to accidentally buy a stolen car, you may have no right to keep it even if you handed over your own money for the car. Below is a guide on avoiding how to buy a stolen car. Some of these tips can be used when trying to buy repossessed cars.

1) Telephone Numbers
Check the number on a car advert. Mobile numbers are almost impossible to trace, so try and get to speak to the owner on a landline. Be wary if you are asked to call at a specific time, this could be a phone box number.

2) Viewing
Arrange to view the car in the daytime at the address the car is registered to. Don’t agree to have the car driven to you or meet in a  public place like a lay-by or car park. If you are asked to do this you should be suspicious.

3) Check Documents
Ideally every car seller will provide a V5 log book which is its registration paper, MOT, Tax, Service history and receipts for maintenance work. Check the seller’s name is on the registration to make sure they have the right to sell the car. Ask them for ID to confirm this.
Check the VIN number on the vehicle registation papers. VIN stands for “Vehicle Identification Number”  and every car has a unique one.
Check the registration matches the car’s number plate. Hold the V5 log book up to the light and check that you can see the DVLA watermark on the paper. Never buya  car without a V5 log book, ewven iof the seller claims that he has sent it away to update the information to the DVLA.

4) VIN and Etching
A stolen car that has its VIN changed is a “ringer”. Some car models have the VIN etched on the windows or the headlamps of the car so its important to look for these. Be wary if there are stickers on windows as this may be an attempt to conceal numbers that don’t match the vehicle.

5) Inspect the Vehicle
Check the locks as thieves replace locks, also inspect the vehicle thoroughly to see if there is any damage. Check the paint in the boot by removing the carpet where the spare tyre is. The inside should be the same any different could indicate the car has been resprayed.

6) Car check
There are many companies offering car checks and HPI checks on vehicles for a small fee. This will tell you if the car has any outstanding finance, it has been written off or if it has been registered stolen. They will also tell if you if it is registered as SORN (Statutory Off Road Notification), this means the car has been registered as not road worthy. It is worth paying this and avoiding bigger headaches after purchasing a stolen car.

7) Instincts
Always trust your instincts. If the deal feels at all suspicious, you have the right to just walk away, there are plenty of other cars available.

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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?

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