If you’re thinking about buying a repossessed car, truck or recreational vehicle, you’ll find a number of ways to make this purchase. However, not all are created equal. For example, if you buy a repo from a dealership, you are going to pay more because the dealership has taken some time to fix and clean the vehicle. For the best prices and freedom in negotiations, it’s smart to buy a repo from a credit union.
What is a Credit Union?
A credit union is a financial cooperative that is owned by its members. It exists to serve its members, allowing them a safe place to save and borrow money at affordable rates. Like banks, credit unions also accept deposits and make loans. They also repossess things when their borrowers don’t pay.
Compared to banks, credit unions don’t have various departments and teams to manage repossessions. This means that in a short amount of time, they can start looking like used car lots. The solution to this problem is to get rid of repossessions as quickly as possible. It’s a win for the credit unions because they get vehicles off their lots, and it’s a win for buyers because they have safe vehicles to choose from.
What are the Benefits of Buying from a Credit Union?
Because credit unions are operated independently, there are different procedures that they follow. So, before buying a vehicle from a credit union in your area, ask about their process for listing repossessions. Gathering all the information you can will increase your chances of finding a safe and reliable repo car.
Here are some benefits to purchasing a repo from a local credit union:
- Competitive prices. Credit unions want to get the cars off their lots and recoup their losses. You can find lower-than-average rates on plenty of great cars by browsing lender inventories.
- Ability to negotiate. Most of the time, credit unions are open to negotiations. Be sure to do your research so that you can make a compelling offer that’s hard to refuse!
- Option for financing. It’s possible that you can get financing directly from the credit union. Typically, credit unions have lower interest rates and fees, too.
- Inspect the vehicle. As long as you limit your search to local credit unions, you should be able to inspect the vehicle on their lot. If you find a vehicle in another state, you can have it shipped to you.
Bottom line: Buying a repossession from a credit union is a great option, especially when you’re shopping for a vehicle on a budget. To browse a full list of repossessions in your area from local banks and credit unions, visit RepoFinder.com. It’s free!