Repossessed Cars

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.

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?

Whether you are planning to visit repossessed car auctions to buy a repossessed car or just thinking of getting a used car, this information will assist you. Buying a brand new car from the car showroom is a nice feeling but to a practical person, it simply means that about 30 to 50% of your value is gone as soon as you drive away.

Why You should Consider Repossessed Car Auctions?

Used car dealers are not the only ones that can offer you a second hand car for a marked down price from its original value. Repossessed auto auctions nowadays can give you an equally if not better deal. You need not deal with sweet-talking

used car dealers who would cajole you with the “best” deals only to fatten their own wallets in the end. Auctions offering repossessed cars used to be the playground of car dealers only but as people start to become more aware, they are taking notice of repossessed car auctions as a viable option to get a good deal. Some of your used car dealers are buying repossessed cars and reselling to you. Why let them earn a middle man fee when you can do it yourself?

The reason why you are getting bargains because the repossessed car auctions were held to clear the inventory of banks or government agencies. The intention is not profit-driven. Every single day, the government agencies seized a great number of cars as empowered by the laws concerning tax evasion, criminal acts and so on. The same situation applies on the private end with banks taking control of properties including cars from loan defaulters. These organizations understand the need to dispose of the liabilities. The longer they hold the vehicles in their possession, the more money they lose in terms of car value as well as the maintenance costs.

Since the auctioneers are eager to get rid of their vehicles, it is quite easy to find seized cars at these repossessed car auctions at incredibly low prices. Sometimes, you can get it at about 10 to 20% of the original retail price.

Thousands of cars are repossessed and become government & bank property through various seizure & surplus laws on a daily basis.
Because of the constant influx of vehicles and the enormous expense to store them, these vehicles are often sold as quickly as possible at a cheap price.  This often incurrs huge losses upon the original buyer of the vehicle who was unable to fulfill the agreement made with the finance company.

This website has been produced in order to provide further information regarding repossessed cars including help and advice on what to do if your car is being repossessed.

Having your car repossessed can often have a huge impact on an individual’s life and is becoming more and more common due to the current economic situation within the UK as buyers struggle to make all payments on time.

Singer Kerry Katona recently famously had two vehicles repossessed due to personal financial difficulty, illustrating how the credit crunch is affecting people from all walks of life.

The links section provides links to other websites offering further information on repossessed cars and what to do in this situation.

For those of you interested in taking advantage of these low priced repossessed cars we offer a section on where you  can buy a repossessed car in your area.

Car Repossession explained

If you are facing car repossession or you are currently struggling to make repayments on your car loan, we advise you to firstly contact the finance company and let the know your situation as they may be able to assist you.

If repayments are not being made, the lender has the right to repossess the vehicle. The lender will initially send you a default notice, this will provide you with the opportunity to make repayment. You will usually be given seven days to take action. If you don’t have the money to put things right, you should explain this to the lender. In some cases they will agree to a new repayment structure. In other cases they may not agree on anything less than full payment and will take you to court. At court you can request for more time in order to make repayments, especially if you want to keep the car.

The lender will require a court order if you have repaid more than 50% of the total cost of the loan agreement (This excludes insurance). If you have repaid less than the 50%, the loan company will require a repossession order from the court in order to repossess the car. They are unable to take the car without this, however if they do get permission from you then they are able to take the vehicle. In the long run, it is sometimes better to just give back the car to the company.

If you are in the situation of facing car repossession we hope this site will be able to assist you in providing advice on what happens and who can help you. If you have any information to add or comments to make we would be interested in hearing from you.