Category Archives: Repo Cars

financing at the dealer

Auto Financing Through a Bank or Dealer: Which Option is Best?

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Unless you plan to pay for a new or used vehicle with cash, you’ll need to obtain financing. You have two main options when acquiring financing: a bank or a dealership. There are pros and cons to both, and no option is necessarily better than the other. 

That being said, we typically give the edge to obtaining financing through a bank. You can usually get the best rates and terms this way, though it’s not as convenient as getting financing at a dealership. Let’s learn more about the two options! 

Financing Through a Bank 

Bank financing involves going directly to a bank or credit union to get an auto loan. You’ll be pre-approved before you go to the dealership, so you’ll know how much you can spend. You’ll also have some negotiating power, as the dealer will know that you’ve been approved with favorable terms and rates. If they want to offer you something, it will have to be competitive. 

The benefit in getting financing from a bank is that you’re getting the true interest rate. There is no markup like you may get from a dealership. You also have the option to shop around so you know that you’re getting the best rate. We do recommend starting this process early, as it can take time to process your application. 

Financing Through a Dealer 

Dealer-arranged financing works in the same way as bank financing. The difference is that the dealer is doing the work for you. And, you can get this financing on the spot. It doesn’t take as long to process, so you can car shop and walk out with something on the same day, providing that you have a good credit score. 

While dealer financing is convenient, it has the drawback of being more expensive. Dealers often negotiate higher interest rates than what lenders offer, as this boosts their bottom line. For instance, if you qualify for a 5 percent interest rate, the dealer may come back with a 7 percent interest rate, keeping the 2 percent difference. 

In general, you can get the lowest financing when buying a new car. Many dealers offer promotional financing on brand new models, including rates as low as 0 percent. However, you’ll need to qualify for this, so expect to have a good credit score.

Is There a Better Option for Auto Financing? 

Now that you know the pros and cons of bank vs dealer-arranged financing, you can make an informed decision. If you have the time, we recommend getting pre-approved on your own. 

Even if you decide to go with dealer financing, you’ll at least know that you’re getting a fair deal. You’ll have some negotiating power, helping you keep your interest rates down. And if you decide to acquire your own financing, you can shop around and get the best terms. You are the one in control. 

Shop with RepoFinder – and Acquire Financing All at Once! 

RepoFinder has a huge database lenders and credit unions that are selling repossessed cars. You can obtain financing beforehand, or you can work with the banks directly. Not only will you get the best rates, but also you’ll save money on the vehicle itself. Repossessions can be as much as 30 to 40 percent cheaper than new cars. Shop today and see what you can find at a great price!

repo car

5 Reasons Why Repos are a Great Deal

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If you’re in the market for a new car, you may be surprised by what new car prices look like these days. The average new car in America sold for $48,043 in June, the highest figure on record and the first time the average has gone over the $48,000 mark. 

Average prices for used cars are way up, too. The average markup is around $10,000 and still growing, with average used car prices around $35,000.  

If you want to save money while still getting a great car, another route to entertain is a repossession. Repo vehicles have been taken from their owners for nonpayment. Many are in good condition but need some TLC like a break change, oil change and full clean. 

Below are five fantastic reasons why repos are a great deal. 

1. You can save up to 40 percent. 

Obviously, the main reason to purchase a repo car is because you want to save money. And there’s certainly nothing wrong with this! Why pay full price on a car that will depreciate in value as soon as it’s driven off the lot? 

With repos, you can save an average of 25 to 40 percent from what you would pay for a new car. Lenders aren’t in the business to sell cars. Their goal is to move this inventory and recoup their losses. 

2. There’s a great selection to choose from. 

Tired of looking at empty dealership parking lots? RepoFinder provides a directory of links to all the banks and credit unions selling repos. We update our inventory regularly, so you can always find new vehicles being added. Find new cars, old cars, SUVs, classics, sedans, minivans and so much more. We even have aircraft, boats and ATVs! 

3. You can negotiate the price. 

Most repos require you to place a bid. If the bid is open, you’ll be able to see what people are bidding. If it’s closed, you won’t. To place a competitive bid, know what the car is worth and the work you have to put into it. Don’t be afraid to offer less – negotiations are welcome and even encouraged. 

4. You can get the car right away. 

Another perk to purchasing a repo car is that you can often take the vehicle home right away. With the recent chip shortage, people were waiting up to 12 weeks for their vehicles to come in! 

While there is slightly more inventory now than there was, it’s still taking a long time for new cars to be delivered. Because of this, more people are holding onto their used cars. A repo is ready to buy now. Place your bid, wait for it to be accepted and close the deal. 

5. No commissions, fees or pressure – shop on your own terms. 

RepoFinder is unique because we conduct business online. Once you find a car that you like, you can communicate directly with the seller. But, unlike dealerships where you work with a car salesperson, you don’t have to do this with repos. The banks are looking to sell this inventory for a fair price, and there is no obligation to buy. 

As you can see, repossessed cars are a great deal! You can save time and money, while also getting a great car that you can start driving right away. 

used car shopping

RepoFinder: Say Goodbye to Commission-Based Sales Teams

When you go to purchase a car from a dealership, a car salesperson will likely help you along the way. They’ll point out the vehicles that fit your needs, take you for a test drive and work with the financing team to make your payments affordable. While car salespeople can be helpful, they can also be pushy. Very pushy. 

There’s a reason why car salespeople are the way they are – they’re under pressure to maximize their profits and sell the most vehicles possible. The more you pay for the vehicle, the more commission they get, which is why they will also try to upsell you on extended warranties and other features. 

Due to this high-pressure environment, some people prefer to shop for cars online. They don’t have to deal with the same pressure, and they can take their time researching the different makes and models. However, when they find a car they like, they often have to go to the dealership to buy it. 

So what if you want to say goodbye to working with commission-based sales teams and shop for cars on your own? RepoFinder is a great alternative. 

What is RepoFinder? 

RepoFinder provides a simple directory of links to banks and credit unions that sell repossessions. These are true repossessions – cars that have been taken from their previous owners for nonpayment. Other places may claim to sell repos, but they often take them, fix them up and sell them for a profit. Not RepoFinder. 

When you buy from us, there are absolutely no fees or commissions. You are buying a car from a bank or credit union that is just looking to recoup some of their losses. They are not trying to get the most money from the sale – they simply want the car sold at a fair price. You can ask questions and make an offer all on our site. 

Tips for Buying a Repo on RepoFinder 

To make the process as smooth and seamless as possible, here are some tips when buying a repo car on RepoFinder: 

  • Take your time and do your research. We have repos in all 50 states, and we update our inventory regularly. Take your time looking through our vehicles and reading the information that is available, such as make, model, condition and features.  
  • Make a competitive bid. Know how to make a competitive offer. Some bids are open and some are closed, so you may not know what other people are offering. And don’t be afraid to offer less – everything is priced to sell. 
  • Inspect the vehicle. Even though you’re shopping online, you should still do your due diligence. Most lenders will allow you to inspect the vehicle before signing anything. 
  • Secure your financing. You can get financing on your own, or you can work with the lender to obtain financing. This could work in your favor, as the lender may be willing to negotiate a lower price. 

If you’re hoping to shop for used vehicles in a commission-free environment, visit RepoFinder today. 

fix old car

Should You Fix Up or Break Up with Your Car?

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If you’re in a rocky relationship with your car, you might be wondering if you should put work into it or dump it. There’s no easy answer, as it all depends on the type of car you have, the overall condition it’s in, its mileage and other factors. But your goal is probably the same as everyone’s: To put your time and money into a vehicle that will provide you with many more years of use. 

Let’s look at the pros and cons of fixing up your car vs parting with your car so that you can make an informed decision that you’ll be happy with! 

Pros and Cons of Fixing Your Old Car 

It’s more tempting to buy a new car. Not only are you getting something new, or at least new to you, but also you can eliminate the headaches with your current vehicle. But experts say that you’ll almost always come out ahead by making the repairs. However, you also need to know when putting in the work is no longer worth it. 

To determine if it’s financially worth fixing your car, look up the current value of your vehicle in Kelley Blue Book. If the repairs cost more than the value of your car, or more than one year’s worth of monthly payments on a replacement car, it’s in your best interest to part ways. 

Other things to consider are the safety and reliability of your current car and its fuel efficiency. You can save money on fuel and give yourself peace of mind by buying something new. But if you feel that your car has plenty of life left and will be a safe, reliable vehicle once the repairs are made, it’s probably best to fix it.

The benefits of repairing your current vehicle are: 

  • Faster than shopping for and buying a new car
  • No change in auto insurance payments
  • The car’s history is known 
  • No need to list and sell your vehicle 
  • Save money and keep your car payments the same 

Pros and Cons of Breaking Up with Your Car 

Obviously, the biggest benefit to breaking up with your current car is that you get to start fresh. If you plan to buy or lease something new, you get to take a break from repair work. Sure, you’ll pay more a month in car payments and auto insurance, but you don’t have to worry about things breaking down unexpectedly. 

That being said, if you plan to buy another used car, you may have another list of problems soon after. And you may not truly know the vehicle’s history, even though you can learn a lot about this through the vehicle’s history report. So, it’s important to keep realistic expectations about what you are buying. 

A new(er) car will also give you other benefits such as: 

  • New warranties and coverage for maintenance 
  • More advanced safety features to be safer on the road
  • Greater reliability and peace of mind
  • Save time from not having to make frequent repairs 
  • Save money on fuel costs – new cars are more efficient 

Shop for Used, Affordable Vehicles with RepoFinder – and Get the Best of Both Worlds! 

When you shop for a vehicle with RepoFinder, you’ll have immediate access to hundreds of vehicles that fit your needs. Our inventory consists of repossessed cars, trucks, SUVs and recreational vehicles that have been taken from their previous owners for failing to make the monthly payments. 

The banks, lenders and credit unions don’t want these vehicles – they simply want to recoup some of their losses. Therefore, they’re often willing to negotiate and help with the financing. This way, you can get something new to you, reliable, safe and efficient while saving money. Browse our site to see what’s available in your area! 

car fixer upper

3 Things to Consider When Buying a Car Fixer Upper

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Buying a car fixer upper is not a bad idea, as long as you keep your expectations realistic. You’re not buying something new, so you can expect to put in some work. At the same time, you can save money and make the car your own. But just because you are saving money on the front end does not mean that you can’t get ripped off. 

Below are three things to consider when buying a car fixer upper.

1. Take Your Time – Don’t Rush!

Unless you need a car immediately, take your time finding a vehicle that meets your needs and budget. Be open to different makes and models of vehicles, as you never know what you’ll find for old, beat-up models. You can also negotiate with sellers most of the time, especially if you’re looking at a repossessed model.

Lenders will take back a vehicle when the owner stops making their payments. However, banks and credit unions don’t sell cars, so they have trouble storing them on their lots. They simply want to recoup some of their losses, so they are usually very open and willing to negotiate. Be sure to include RepoFinder in your search for fixer uppers. 

2. Look for Matching Parts

Once you find some vehicles that fit your criteria, try to find parts online. There are some essential repairs you can expect to make, such as changing the brakes. Search for these parts and make sure that they are available so that you can make the car safe to drive. 

Also consider some bigger projects like replacing the transmission or engine. You’ll want to look for these parts, as well as smaller parts like headlights, fenders, car batteries, spark plugs and oil filters. If you want to be able to fix the vehicle, the correct parts must be available – and affordable. 

3. Be Willing to Negotiate 

Car fixer uppers cost less than other cars, but you want to make sure that the bargain you’re getting will be worth the time and money you put in. If the vehicle is a hobby, then you have more freedom as to how and when you make the repairs. But if the vehicle is a necessity, the repairs will need to come sooner.

Get a general idea of what fixer upper cars cost, and be willing to negotiate with the seller. See the car in person first as well so that you can determine if it’s a vehicle needing repairs or a complete piece of junk. Talking with the seller also allows you to ask questions face to face. 

Shop for Car Fixer Uppers Today

These three tips will help you when buying a car fixer upper that is worth your time and money. Add RepoFinder to your list – we have a huge database of repo cars, trucks, SUVs and recreational vehicles that are being sold at bargain prices. Some are fixer uppers needing a bit of work, and others are in great condition. Find a car that you love today! 

sedan car

Buy a Car You Can Afford with These Tips

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Like most everything else these days, car prices have skyrocketed. Cars have always been expensive, but the pandemic has had a tremendous impact. First, car prices rose due to high demand and low inventory. We’re hoping that prices will drop as supply chain issues are fixed and there’s a better balance between supply and demand. 

However, now we’re dealing with a new problem: rising inflation. Inflation is driving up car prices, just as it is fuel, groceries and utilities. In 2021, inflation rose to 7 percent, the biggest increase in nearly 40 years. Used car and truck prices shot up 37 percent last year, with the average used vehicle costing $29,000. 

If you need a new vehicle, you might be stressing about how you can afford it. Below are three tips that will help you afford a vehicle of your choice! 

Set a Monthly Number 

The first step when buying any car is to set a monthly budget for what you can afford. Don’t forget your car insurance payments, too. Experts recommend spending no more than 15 percent of your monthly take-home pay on a vehicle. Depending on your budget, you may have to stick closer to 10 percent. 

Based on these numbers, if you were to bring home $3,000 a month, your car payments should be around $300 to $450 a month. This is actually a good number to work with, providing that you’re interested in buying a sedan or coupe. If you’re looking for an SUV or truck, it might be more of a stretch. 

Calculate Your Monthly Payment 

Once you know how much you can spend, you can start shopping around for vehicles in your price range. New car ads and review sites generally list out the MSRP (manufacturer’s suggested retail price), but you can use a calculator to determine what your monthly payments will look like. 

To get an accurate picture of what you’ll be paying, be sure to enter in your down payment and interest rate on the site’s calculator. Your interest rate depends on your credit score. Average interest rates with good credit (661-780) are 3.56 percent for new cars and 5.58 percent for used cars at the time of this writing. 

Shop for Repossessed Cars 

With the market being as competitive as it is, it’s helpful to shop for cars in different ways. For example, some people are shopping online and having their vehicles delivered to them. Others are attending auctions in their area. Another option you may not have yet considered is repossessed vehicles. 

Repo vehicles are those that were taken away from their previous owners because they defaulted on their loans. These cars are often newer and in good condition – their owners just could no longer afford them. Many repossessed cars are sold in auctions, but RepoFinder sells them to the general public. 

You can save up to 30-40 percent on a repossessed vehicle. And, because RepoFinder features vehicles being sold by banks and credit unions, you can often work out an even better deal by securing financing through them! To learn more about purchasing a repo car in your area, shop with RepoFinder today! 

save money used car

How to Save Up to 40 Percent on a Used Car

With new cars topping $47,000, it’s understandable why you’re shopping for used vehicles at discount rates. But even used cars are expensive these days! A used sedan might only cost around $20,000 to $25,000, but a used SUV or pickup truck costs an average of $37,000! 

If these prices are still out of your budget, rest assured that there are additional ways to save money on a used vehicle.

Consider Repossessed Cars 

The first piece of advice is to open your search to repossessed vehicles. Repo vehicles are cars that have been taken from their owners because they couldn’t afford to make the payments. They are now in possession of the lender (i.e., bank or credit union) and ready to be sold.

Banks and credit unions are highly motivated sellers because they don’t have the space or capacity to store and sell cars. Browse RepoFinder’s database – it has hundreds of repo cars, trucks, sedans, etc. that you can place a bid on today! On average, repo cars are between 25 and 40 percent cheaper than new cars. 

Shop for Vehicles Online 

Another way to save money is by shopping online. You can see what’s available at local dealerships, saving time and hassle from driving from one dealership to the next. You can also expand your search by looking at cars in other locations, such as the next closest state or city. 

The nice thing about shopping online is that you can take your time and make a good decision without pressure from a car salesperson. This could end up saving you hundreds or thousands of dollars, as it’s easier to spend more when you’re in a high-pressure environment. 

Get the Right Financing 

When you buy a car through a dealer, you’re more likely to use their financing department. While there is nothing wrong with this – it’s quick and convenient – you probably aren’t getting the best deal. 

When you shop for cars on your own, you have the option to check interest rates through multiple lenders. You can then get a pre-approval from the lender with the best rates. Most lenders allow you to complete the application process online, so there’s not much you have to do but fill out some paperwork. 

Keep Your Loan Short 

Even though your payments will be smaller if you stretch out your loan to 72 or 84 months, you’ll end up paying more for your vehicle over time. And, if your car is getting older and experiencing problems after four years, you’ll still be locked in.

If you can swing it, keep your loan short. This way, you’ll be able to pay off your loan faster, and you won’t find yourself underwater if something happens to your car. 

Make a Down Payment 

If you sold your previous car to a private buyer, you can use this money for a down payment. A sizable down payment shortens your loan, and it can help you lock in lower interest rates. This happens because a down payment lowers your loan-to-value (LTV) ratio on your financing, making you more attractive to lenders. 

If you don’t have a sizable down payment, look for specialized online lenders that offer low-rate auto loans without down payment requirements. Credit unions may also be willing to work with you. 

These are some of the best ways to save up to 40 percent on a used car. Keep in mind that there are many ways to save – it’s not just the purchase price that makes a difference. For savings of up to 40 percent, shop with RepoFinder.com! 

loan for repo car

Can I Get a Loan for a Repossessed Car?

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If you’re shopping around for a bank-owned vehicle, you’ll be glad to know that there’s a wide selection to choose from – and all at great prices. But one question that many car buyers have regarding repossessed vehicles is what type of financing options are available. 

When you purchase a vehicle from a dealership, you have the option to use their financing department. It’s quick and easy, especially if you’re trading in a vehicle at the same time. But when shopping for a repo car online, you don’t have these same options. So what can you do? 

Fortunately, financing for repossessed cars works in the same way as it does for any other car purchase. While there might not be a dedicated financing department on hand, you can still finance your purchase. The difference is that you’ll have to do the legwork beforehand, such as by filling out applications and getting pre-approved. 

Let’s cover the different financing options you have when buying a bank-owned vehicle. 

Banks 

RepoFinder offers a huge database of repossessed vehicles from different banks. Banks are highly motivated sellers that are often willing to negotiate. And, the benefit in buying from them directly is that they can provide you with financing as well. 

You can also obtain financing through a bank before buying a car. All you need is a pre-approval, and you can present this to the seller when you’re ready to purchase the vehicle. Your loan will be finalized when you purchase the car. 

Credit Unions

Credit unions work similarly to banks, though there are a few differences. To apply for a loan through a credit union, you typically need to be a member, which involves opening an account and making a deposit.

The benefit to credit unions is that they are more lenient than banks. If you have poor credit or a limited history, they’ll be more understanding. At the same time, they are not as convenient as banks. You may have to make your payments through mail instead of online, for example. 

Online Lenders 

Another option that car buyers have is to obtain financing through an online lender. Since most people shop for repo cars online, you may find it easiest to access financing this way. Online lenders are fast, convenient and often have lower rates. But you’ll still want to do your research and compare rates. 

The only thing to watch for with online lenders is that they don’t always have the best customer service. They’re designed to be quick, streamlined and convenient, so customer service is generally online and not through a real person. 

The most important thing to know is that you can get an attractive, flexible loan with great terms when buying a repossessed car. To shop for bank-owned vehicles in one central location, browse through the RepoFinder database today. 

used repo car

Why Used Cars are Better than New Cars

A common challenge for car buyers is whether to buy a new or used vehicle. If you can afford it, buying a new car is certainly worth the excitement. You get a brand new car, just the way you want, and with the full warranty still intact. Plus, new cars feature the latest technology and safety features, as well as higher fuel efficiency and lower emissions.

But as wonderful as these features are, you’re going to pay dearly for them. According to Kelley Blue Book, the average price Americans paid for a new car topped $47,000 in December 2021. This is A LOT of money! Bankrate reports that the average monthly car payment for new cars is $609. 

If you’re not in the market to spend this much on a new vehicle, there are plenty of things to love about a used car. 

Cost Savings 

Obviously, the biggest benefit to buying used is the cost savings. Used cars cost far less than new ones, not just in the overall price of the vehicle, but the taxes and fees as well. Also, insurance rates are often cheaper for used cars because the vehicle costs less to replace. Learn more about buying a used car for under 10k. 

Depreciation

Considering that new cars depreciate about 20 percent in one year, it’s not a bad idea to consider something previously owned. Used cars depreciate, too, but not nearly as fast. And, there’s no hit as soon as you drive off the lot. Also, some say there’s less ‘mental depreciation’ because the first parking lot ding or rock chip has probably already been made.

Warranty 

Most vehicles come with a manufacturer warranty of 3 years or 36,000 miles. But it’s not uncommon for new cars to have a bumper-to-bumper warranty of 5 years and a powertrain warranty of 10 years. If the new car you’re purchasing is only a few years old, this warranty gets transferred to you. 

Safety and Quality 

Today’s vehicles are meant to last much longer than they once did. Therefore, buying a vehicle that’s a few years old isn’t taking much life off. You’ll still be getting new technology and safety features. In fact, some buyers find that they’re able to get a package they wouldn’t have otherwise afforded in a new vehicle, allowing them to walk away with MORE, not less. 

Shop for Used Cars at RepoFinder

New cars are certainly tempting, but don’t let this deter you from the many wonderful used vehicles on the market. RepoFinder consistently turns over a huge inventory of pre-owned vehicles. These vehicles are repossessions, and many are in great condition but could no longer be afforded by their previous owners. Browse our selection of repo cars today!

signing license paperwork

Difference Between a Salesperson License and Dealer License

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If you want to start a dealership business, you’ll need a car dealer’s license. You may also need a salesperson’s license if you want to work in your dealership as part of the sales team. Each application has its own separate fees and requirements, and these vary based on the state you live in. 

Let’s learn more about these two types of licenses and what they allow you to do. 

Dealer vs Salesperson License: Which Do You Need? 

A dealer license allows you to purchase used and new vehicles from car manufacturers and auctions, both in-person and online. If you plan to open a dealership, you will need a dealer license to operate. This is how you will get your inventory and add to it with new, used and repossessed vehicles. 

A salesperson license only allows you to sell the vehicles the dealership has already purchased to customers. In other words, you can sell the inventory on the lot but you cannot purchase anything. If you plan to purchase and sell vehicles, you’ll need both a salesperson and a dealer license. 

Licensing Requirements 

Obtaining a car dealership license is similar to starting a business. You’ll need your federal tax ID number and the location of your business. You’ll also need proof of insurance, as you must have insurance on all vehicles. 

A salesperson license is different. You don’t need any business-related documents. Instead, you just need to show that you have auto insurance and a clean driving record. The fees associated with a salesperson license are also much cheaper. 

Surety Bond Requirements 

On top of the licensing requirements, there is also a surety bond requirement to consider. Typically, you don’t need a surety bond for a salesperson license, but you will need it for a dealer license. The amount varies depending on your state, but it ranges between $20,000 and $100,000. 

Renewal Requirements 

Once you obtain the licensing you need, you will have to renew it every year or two years, depending on the state you live in. Fortunately, the renewal process is much easier and cheaper than obtaining the original license. That being said, you may need to provide proof of continuing education in the auto industry to keep your dealer license. 

Now that you know the differences between a dealer’s license and a sales license, you can make the right decision for your business. RepoFinder.com is a huge database of repo vehicles being sold from banks and credit unions. You do not need a dealer’s license to shop with us – our vehicles are open to the public. Shop with us today!