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.

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.

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 Car
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.

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:

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.

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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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.

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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.

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.

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.