Posts Tagged ‘car repossession’

Bank Repossessed Cars

Saturday, June 13th, 2015

In some situations, you may end up in a poor scenario where financial institutions have to take very punitive measures in relation of missed finance payments on a car or motor vehicle. This may result in the repossession of your vehicle. But it is important to know that financial institutions will give you sufficient opportunities to resolve the issue and avoid the worst case scenario mentioned.

In effect if the bank has tried to resolve repayments from your side and has not been able to acheive this, they are bound to go into the next level where they will request legal intervention that will be required for you to be forced to repay via legal means. If that situation fails, then the bank has no alternative than to request a repossession of the vehicle due to debts owed.

Vehicles that have been repossessed are generally sold via auction by financial institutions to recover debt that may be owing to them that you may have created. Banks will look for the opportunity to get the best value of money for the vehicle, and quickly, hence why they use an auction where every indiviuals and businesses who may want to purchase bank repossessed cars will be in one place to ensure a fast deal as close to the market rate as possible.2016-Audi-Q1-render

Once they have sold the bank repossessed car, they will expunge the debt that you have through the income that they got from selling that vehicle, however, if there is a balance left in that account, the bank will still hold you liable to settle the balance. If the amount that has been received through this action is higher than what was owed, then the balance taking into account all costs including any legal costs will be paid back to yourself. In this sense, the bank is not attempting to penalise the consumer, but get back whatever is owed to them, if there is anything remaining then this can be paid back to yourself.

Finance Repossessed Cars For Sale

Monday, April 16th, 2012

During these tough times, the saying “every penny counts” could not be truer than ever. People are continuously finding ways to save their hard earned money for the rainy days. And because of this, more and more people are discovering the advantages of buying finance repossessed cars for sale. Here are a few reasons why people are opting to buy repossessed vehicles, rather than a brand new one.

Of course, the most obvious advantage of purchasing a repossessed car is the amount of potential savings it will bring to the buyer. Repossessed cars are sold at a very low price simply because the bank or auto dealer would wish to liquidate their assets in order to recover losses. The main reason for the repossession of a car is because the previous car owner was not able to make the necessary monthly payments, thus causing the bank or auto dealer to lose revenue. By selling the repossessed car at a very low price, they are able to get back their losses quicker.

Another advantage of buying a repossessed car is that you are purchasing a vehicle in good condition. Car loans usually only allow three to five years for the buyer to repay the loan amount. And repossessed cars are reclaimed from their previous owners within that time frame, thus the car is still relatively new and is still in a good condition. However, this still depends on how well the previous owner was able to do maintenance checkups or service the vehicle. But some auto dealers or finance companies opt to carry out minor repair and restoration to the repossessed car so that it could be sold at a slightly higher repossessed cars for sale

Lastly, the process of purchasing repossessed cars has been made simpler in the past few years, making it as convenient as possible. The sale of a repossessed car can be handled primarily by the bank or auto dealer, or it can be auctioned off by an auctioneer. Most car auctions would only require a couple of basic documentats providing proof of your financial capacity and you can start making bids or offers on the auctioned cars. Alternatively, there are car auctions carried out over the internet which allows a person to make bids from his home using a computer. However, it is still recommended to check the car’s current condition personally before making any offers.

The benefits of purchasing a repossessed car are obvious hence the reason for its increased popularity amongst car buyers. However, in order to be truly successful in buying finance repossessed cars for sale, it requires time and effort from the car buyer in order to ensure that he is getting the most value out of his money.

Repossessed Cars Questions

Wednesday, November 16th, 2011

Why are there so few sites selling repossessed cars online?
Despite the fact that there are so many products and services being sold online nowadays, places available to buy repossessed cars on the internet are scarce. This is mainly because it is easier to sell these vehicles in one location via an auction. Cars can be sold in a matter of minutes and payments can be exchanged immediately. There is no hassle of transporting cars to customers that selling via a website might have. There are repossessed car auctions operating in every major city in both the UK and USA so finding one isn’t hard. They also provide the opportunity for potential buyers to physically inspect the vehicle while the sellers are recouping money back for the loan on the car through a quick sale. Having said that, there are auction sites such as GAUK who are selling very successfully over the web.

My car is due to be repossessed, will I be charged to have it taken away?
When a car is repossessed the finance company will charge you any additional costs on top of the loan amount on the vehicle. This can include bailiff costs or the amount it costs them to get someone to tow the car away. Court costs and payment penalties can also be incurred. So therefore the answer to this question is yes.

After making regular payments and paying off the full loan on my car, the finance company repossessed my car without written warning after claiming that 7 months of payments had not been made on the vehicle. My bank statements prove I never missed a payment. What can I do?
The finance company has no right to repossess your vehicle in this way. Our advice would be to speak to a lawyer or visit the local Citizens Advice Bureau.

My car still has finance repayments outstanding, can a bailiff still come and repossess the car for a different debt eg. failure to pay parking fines?
Yes, even though the car still has finance, the car can be repossessed if the vehicle is in your name. When you owe money for an unrelated debt, the bailiffs will look to recover the debt they have come for by removing your assets. If one of your assets is your car then they will have the right to take this away. The unfortunate thing is that you will still have to pay back the loan on the vehicle even when it has been taken away so it is best to pay those parking fines.

Repossessed Cars: Subprime Car Loans On The Rise

Sunday, September 4th, 2011

The collapse of the US housing market was largely blamed on banks offering “subprime mortgages” to a large number of people. As time went on and the economy struggled more, the interest rates increased and borrowers were expected to meet repayments they could simply not afford. This resulted in a massive growth in property repossession in the United States, leaving many people homeless.

Subrime loans are those which are offered by lenders to borrowers who may not have passed the normal criteria for lending. This involves providing credit to those who may not necessarily have had access to the credit market. Examples would include people with previous debt defaults, first time lenders, people with a bad credit history etc. The loans are provided on the basis that the repayments are at a premium or higher rate. This means the borrower gets the loan but the repayment amounts are significantly higher than those with a decent credit history. The offer of obtaining a property would have seemed attractive to someone desperate for their own house but as the market suffered and interest rates increased, the number of people struggling to make repayments also did. This may have been a result of change in circumstances or loss of work, or even the fact that the cost of living is on the rise.

Following the boom in subprime mortgages, it appears banks and lenders are now targeting a whole new market – the car buyers. Credit Score company, Experian has reported a sharp rise in the number of subprime auto loans available, a change in the cautious approach which had been implemented by lenders over 2009 and 2010 following the collapse of the housing market.

People who were previously unable to buy a car because their credit was bad or because they simply couldn’t afford it are now being offered the latest models coupled with a “slightly higher loan”. For some this may be a great deal, if their financial circumstances can manage it then they may have to make slightly higher repayments but they get a car they may not have previously. For others, this can mean they are spending above their means, and the attraction of a new car pushes them to make an agreement they can’t fulfill. This can ultimately lead to their car being repossessed as they begin to miss their repayments.

Experian have stated that the percentage of subprime car loans has increased from 37.2% at the end of 2010 to almost 41% in 2011.

From a lender’s perspective the ability to repossess a car is much easier than repossessing a house. They can send the repo man out and pick up a car in a matter of hours and then resell it quickly through a repossessed car auction. In contrast, repossessing a house is much more difficult and can take a vast amount of time. This makes subprime car loans an attractive proposition for a lender as a car is a lower risk.

If you are considering a subprime car loan we would advise to check the repayment amounts and make sure they affordable for you. Don’t forget the other costs involved when owning a car – petrol, insurance, taxes etc. Also look at the interest rates and the total repayment amount, is the total viable? All of these checks can help you avoid car repossession.

Facebook Friends Help Son Get Murdered Mother’s Repossessed Car Back

Tuesday, July 5th, 2011

A distraught son ended up losing his mother’s car to repossession after her mother. A single mother in Denver was brutally murdered by an ex boyfriend in America leaving her two children behind.

Following the murder, the car was taken by police as evidence and then automatically repossessed by the lender. Despite making the car payments after the death of his mother, Toyota failed to give back the car to the son, Aaron and ended up repossessing it. Toyota demanded the full balance of the vehicle despite receiving the repayments citing state law as giving them the power to repossess.

After Aaron posted his feelings on social networking site, Facebook, his friends decided to take matters into their own hands and began commenting on the injustice that he had received by Toyota. They posted hundreds of comments regarding the repossessed car on the Facebook page of the car manufacturer.

View the whole story here:

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!


Get Your Repossessed Car Back

Thursday, April 7th, 2011

People in America will have no fear about getting their car repossessed thanks to the Spike TV network. Vehicle owners who find themselves the victim of car repossession will be given the opportunity to win back their repossessed car courtesy of a brand new tv gameshow due to hit screens in April 2011.

“Repo Games” will provide car owners the chance to win back the car they had previously defaulted on and winners will get back their car outright! No more repayments and the repossession is cancelled.

The below article from CNN Money provides further info on the show, I for one will be interested to see the format, knowing Spike TV the process won’t be straightforward.

NEW YORK (CNNMoney) — “Repo Games,” a reality television show from Spike TV that allows debtors a chance to win back their repossessed cars, will hit the airwaves later this month.

“This is the only show that combines the game-show format with actual repos,” said producer Sally Ann Salsano, “On the show, we give them a chance to win their car back, clean and simple. No car payments ever again.”

She explained that debtors on the show are “not thrilled” when they discover their repossessed cars hooked up to a tow truck, as a video crew captures their reaction. But they brighten a bit, she says, when they realize they’ve got a fighting chance to get their car back, with all debts paid off, if they successfully answer three out of five trivia questions.

“This could be a terrible situation, but this could also be your lucky day,” she said.

The trivia questions, she said, range from food and drink to science, pop culture, movies, technology and other topics.
Salsano of 495 Productions will debut this show April 26, right on the heels of “Jersey Shore,” a reality show that recently wrapped up its third season on MTV, which owns Spike TV.

As one of the producers of “Jersey Shore,” Salsano lived in the show’s beach house where the crew filmed her ne’er-do-well roommates — the stars of the show — as they lounged around all day, got drunk in clubs, argued about trivialities and attempted to score with like-minded members of the opposite sex.

The stars of “Repo Games” are, as might be expected, actual repo men. Josh Lewis and Tom DeTone are real-life professionals who repossess cars for a living. They’re not actors, which sets them apart from Emilio Estevez and Harry Dean Stanton, who starred in the 1980s cult flick “Repo Man.”

Spike TV filmed Lewis and DeTone as they repossessed 80 cars in Los Angeles and Dallas.

“Tom is the big muscle guy, but he’s a total softie on the inside,” said Salsano. “Josh razzes with the people a little bit. They both have a heart of gold and they’ve both been repoing cars for years.”

In their off-camera repos, the debtors are out of luck. But in their on-camera repos, Lewis and DeTone are the ones who pose trivia questions to the winners and losers.

“They feel like they’re giving people a chance,” said Salsano.

View the full CNN Money article.


Finding Repossessed Cars For Sale

Sunday, March 13th, 2011

Whether you buy repossessed cars from auctions or through ads, finding repossessed cars can mean huge savings for you. Most people have heard that repossessed cars for sale can be bought for little money, but the majority of people dont know where to look.

Keep in mind a few simple tips and your search will be an easy one. Look for repossessed car auctions close to you. You can try searching for auto auctions close to you. Visit our Repossessed Cars homepage and search for an auction close to you by using the locations links on the right hand side.

Finally, try reading our repossessed cars for sale info and this may also give you further ideas or ways you can find the perfect repossessed vehicle for you.

Repossessed cars are sometimes sold individually in local newspapers, car magazines and on classified ads websites. Try contacting private parties and car dealers, they may be willing to give you advice on how to buy repossessed cars and on where you can find repossessed cars for sale.

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.

Repossessed Cars FAQs 2011

Saturday, January 29th, 2011

Are there any hidden dangers in buying a finance repossessed vehicle?

Check the car is sound mechanically, it’s important to remember that dealers are also buying repossessed cars and selling them in their showrooms. If they can pick the bargains up from the auction houses and sell at a profit, then why can’t you? Remember that if you buy from an auction, there may be fees to pay so remember to factor these costs in when bidding.

Can you recommend a website for buying a repossessed car?

There are a number of websites available to buy a repossessed car. Sites such as Repossessed Cars provide details of where to buy the latest repossessed cars in the UK. If you are in the United States, visit the Government Auctions site.

Hi I purchased a car on finance. Unfortunately my partner became ill and I was not able to make my repayments as I had to give up work. The Finance company repossessed my car back in good condition. The vehicle was resold under market value and a bill for £1250 was then sent to me. Why am I the one who has to pay this? The company have their vehicle back and I have no control over the resale price?

When you completed your agreement with the finance company, the signed documents contain details of your loan amount and the value of the repayments. It also contains a statement which mentions that if you default on these repayments then you are reponsible for the difference of the amount you have paid and the amount still outstanding on the loan. The finance company will have resold the vehicle via a repossessed car auction and then deducted that amount from the outstanding money. Any costs incurred for repossessing the vehicle will also have been added. The balance is then £1250. As you signed the agreement at the time of purchase, you are liable to pay back the funds. The bank with whom the agreement was made, unfortunately have no interest in the car, they only want to recoup their money. Your circumstances whilst being unfortunate will not have any bearing on this repayment amount, the bank’s only concern is that this money is repaid.

My husband died recently and left his car on finance with an outstanding repayment of over £3000. The car was in his name and now there is a repossession order on it. Will this affect my credit rating? We have small 2 children, and already have many other bills to pay.

When your husband died so did the liability on the purchase agreement of the vehicle. It is more than likely the loan will be insured in the event of death, so you should contact the finance company and advise them to collect the vehicle. If the car was on his name, you have no liability for this loan, sorry to hear about the death of your husband.