buying a repo car

Does a Repossession Change the Title or Warranty Terms on a Car?

This entry was posted in Repo Cars and tagged , , , on by .

Buying a repossessed car is a great way to save money. There’s a misconception that repossessions are old and in terrible shape, but this isn’t necessarily the case. While there will always be fixer uppers on the market, many of the cars that are repossessed by banks and lenders are newer. It’s just that their owners could no longer afford the high payments. 

When you consider that the average monthly payment for a new car is $700, you can quickly see how cars end up in repossession. Most repo cars are picked up by dealerships and then resold as used vehicles. However, at this point, they’re also getting a markup from the dealership. This means that you’re not paying true repo prices. works differently. We offer a directory with links to banks, lenders and credit unions all over the United States. They have repo inventory they want to sell, and they sell it to the public – not to dealers. Therefore, you do not need a dealer’s license. You can simply browse the available vehicles in your area and place a bid when you find one you like. 

Do Repo Cars Have a Clean Title? 

A common question that people ask is whether or not repossessions have clean titles. The answer: Yes. At least, they should. We do not recommend buying vehicles without a title, as this can lead to problems down the line. You could be paying for the vehicle, driving it around and maintaining it, and the ‘true’ owner can come back with the title. 

The car you buy should have a title. A ‘clean’ title means that the car was never determined to be a total loss. Other types of titles you might come across are a salvage title and a rebuilt title. It’s best to avoid salvage titles. Rebuilt titles may be okay. 

Titles show who owns the vehicle, and ideally, you want them to be clean. But a vehicle being a repossession has no bearing on the title. 

Do Repos Include a Warranty? 

As for the warranty, it’s well-known that repossessions don’t include a warranty like you would get from a dealership. You are buying the vehicle as-is, which is why you get a steep discount. In exchange for this discount, you are agreeing to take care of whatever problems the car has. It could be minimal maintenance and repairs, or it could be major issues. That’s why we always recommend having a full inspection done.

But, if the vehicle still has its original manufacturer warranty intact, a repossession will have no bearing on it. The warranty will roll over to the new owner, and you are free to use the warranty as you need it. You can also consider purchasing an extended warranty on your own. Extended car warranties aren’t always worth the money, though, so do your research. 

Bottom line: Repossession doesn’t change the title or warranty on a vehicle. If the car you’re interested in has a clean title and manufacturer warranty, this will be passed down to you. To browse the repo cars in your area, visit today