Buying a repossession is a lot like buying a used car, except it is an “as-is” purchase. There is no warranty from the dealer, so you absorb whatever problems the car has. This is why repos are hundreds to thousands of dollars less than other vehicles.
Even though there are significant cost savings upfront, you don’t want to end up wasting your money. So, how can you determine that the repossession you’re looking at is actually a good deal? Below are five signs to look for.
You’re buying a repo from a bank or credit union.
Where you buy your repo from makes a big difference. We recommend working with lenders because they have the best prices with no added fees or commissions. Plus, you can often get attractive financing offers directly from the bank. Lenders are also transparent with pricing and bidding.
You can do an inspection.
You should always ask to see the repo before you make an offer. Again, when you work with a reputable seller, an inspection shouldn’t be a problem. If you don’t know a lot about cars, bring along someone who does. They can look over the repo and make sure it’s a good value.
The repo has a title.
You should never buy a vehicle without the title. If a repo doesn’t have a title, there’s no telling who really owns the car. You could pay for it, and the owner could claim ownership later on. What you don’t get with a repossession is a warranty from the dealer. But, a repossession does not change the title or manufacturer warranty.
You know where it came from.
It’s not always possible to know where a repossession came from. However, if the bank can tell you some information about the vehicle, it’s in your favor. Depending on the circumstances, the lender may know the condition of the repo, a little bit about the history and the area it came from. This information, coupled with an inspection, can give you greater peace of mind.
You feel good about the purchase.
If you feel that you’ve found the right repo car, make an offer! Don’t be afraid to negotiate or offer a lower price, especially if you want financing from the bank. On the other hand, if you don’t feel confident, you should wait. There are tons of repossessions, with new ones being listed daily. There is no reason to buy something you’re unsure of.
It is possible to find a clean repossession in good working condition at a great value. For a convenient list of banks and credit unions with repo lists in your area, visit RepoFinder.com today.