Purchasing a repossessed car or truck is an excellent way to save money while still getting a reliable vehicle. These vehicles have been taken from their owners for failure to make their payments. The banks and lenders that are selling them are highly motivated, which means lower prices and faster sales for buyers.
However, just as with other large purchases, you’ll want to make sure that you do your research and make smart decisions. With auctions and bidding, it’s easy to get caught up in the action. Because repos are typically sold as-is, you’ll want to leave some money in your budget for repairs and maintenance.
Below are some of the biggest pitfalls you’ll want to avoid when buying a repossessed vehicle.
Do Your Research
Remember when you used to research topics before writing a paper? It’s time to put those skills into action! Before you even start looking at repo cars for sale, do your research. Browse vehicles that will fit your needs and budget, find out what problems they tend to have and determine fair prices for the model you’re interested in. This information will help you spot a good deal and negotiate more effectively.
Get Approved for Financing
Unless you have the money to pay for the car in full, you’ll need to secure financing from a bank or credit union. Fill out online applications and get pre-approved for an auto loan. This will tell you what your monthly payments will look like and the interest rates you’re likely to get. You can then (hopefully) negotiate an even better deal with the bank that’s selling you the repo.
Choose Reputable Sellers
Dealers may sometimes advertise repo cars for sale, but they’re usually not true repos. Instead, they’ve been bought from a repo seller, fixed up and are being sold at a used car price. To get a true repo, make sure you’re buying from a repo auction or seller. However, keep in mind that not all repo sellers are the same.
RepoFinder.com has a directory of links for banks, lenders and credit unions across the country that are selling their repo inventory. They continuously update their websites with new inventory, and you’re free to place a bid on any one of the vehicles. Our directory makes it easy to shop for repossessed cars, trucks, SUVs and recreational vehicles all in one place!
Inspect the Car
If your bid is accepted, you’ll have a short window of time where you can inspect the vehicle. Be sure to take this opportunity. If the car is in a different state, hire a mechanic to inspect it for you. You are buying the vehicle as-is, so you want an accurate picture of the car’s condition and the work it may need.
You may not be able to test drive the vehicle due to liability purposes. But if you are able to take the car for a quick spin, be sure to do this as well. Inspecting the car will help you identify any potential problems that may need attention.
When you’ve done your research, chosen a reputable seller and thoroughly inspected the vehicle, you can expect a positive experience with buying a repo. To start the process of finding a repossessed car that meets your needs and budget, visit RepoFinder.com today.