A lot of people are intimidated about the procedure for buying a bank or credit union repo car. These 7 steps will show you that anyone can do it.
Step 1 – Find out what you can afford. Too often car buyers go shopping without knowing their budget. If you are financing your purchase a bank or credit union can pre-approve you for a loan.
Step 2 – Decide what kind of vehicle is right for you. If you live in an area that sees snowy winters you may want to look for something with all-wheel drive. If you have long commutes manual transmission vehicles will typically get better mileage. Buying a car is a big decision and you want to make sure that you buy something that will meet your needs.
Step 3 – Start shopping.+RepoFinder will link you with the entire local repo inventory in your area. Remember steps #1 and #2 as you shop. Don’t decide on anything impulsively.+RepoFinder will give you the quickest access to local inventory, but sometimes credit unions don’t update their inventory right away. Feel free to call the credit unions and inquire about unpublished or upcoming repo’s for sale.
Step 4 – Ask a lot of questions. Don’t rely on the credit union for a history on a repo. They just got the car like an orphan on their doorstep, and won’t be able to tell you much about it. Repo’s are sold as-is, so it’s a good idea to have a mechanic take a look at it. Many newer vehicles may have an existing manufacturer’s warranty that would still apply. Resources like+Consumer Reports and+Carfax are great places to start your research.
Step 5 – Start the bidding. Some credit unions will sell repo’s in an auction format; taking bids for a set time, then selling to the highest bidder. Don’t forget that everything is negotiable when we’re dealing with repo’s. The banks DO NOT want these cars and will make concessions to help sell them. If they can’t budge on the price ask if they will finance you at a better interest rate.
Step 6 – Close the deal. Finalizing the sale will be smooth sailing when the bank is involved. They will handle the financing, bill of sale, and title work in one fell swoop.
Step 7 – Enjoy your new wheels.