Tag Archives: bids

Kelley Blue Book values

How Accurate is Kelley Blue Book?

If you’re considering buying a repossession, it’s a good idea to familiarize yourself with Kelley Blue Book (KBB) values. Given a history of over 90 years and millions of unique visitors logging onto the site each month, KBB is one of the most popular and trusted guides for automotive pricing. It can also be incredibly useful when placing a bid on a repo car. But, how reliable is KBB? 

Let’s go over the basics of how KBB determines used car values, some issues with pricing to think about and solutions when placing a bid on a repo car. 

How KBB Decides Used Car Values 

Kelley Blue Book regularly receives car prices from wholesale auctions, car dealers, rental fleets, auto manufacturers and private party sales. It uses a sophisticated algorithm to analyze pricing data, historical trends, current economic conditions, time of year, location and industry developments to come up with an accurate value for each vehicle.

Here are the different values each car is given. 

  • Private party value. This number tells you how much you can expect to pay for a vehicle through a private seller. 
  • Trade-in value. The trade-in value is the amount you’re likely to get when trading in your vehicle.
  • Suggested retail value. This is the price that car dealerships are usually asking for a vehicle.
  • Certified pre-owned value. Cars covered under certified pre-owned fall into this category.

As you can see, KBB takes many factors into consideration when determining the value of today’s vehicles. However, there is still a lag that must be accounted for, as it takes time to collect and analyze the data. It’s possible that the latest trends and economic conditions aren’t being accounted for in the latest number. Other than this, you can expect Kelley Blue Book to be a good benchmark for your bid. 

Tips for Bidding on a Repossession 

When you find a repossession that you want, the next steps are to inspect the vehicle and place a bid. Here are some tips that will help you place a strong bid.

  • Consider other sources. KBB is great, but there are other options as well. Check out the NADA Guide (the yellow book) and consumer reports. Compare your findings for the most accurate price. 
  • Negotiate. There is usually some room to negotiate when buying a repossession. Banks and lenders want these vehicles off their books and some will go below the KBB value. 
  • Set a limit. Know what you’re willing to pay for the vehicle. When multiple people bid on a repossession, it can drive up the price. Don’t let the excitement of winning a bid cause you to pay more for a car than you need to. 
  • Choose a bank or lender. Although you can bid through an online auction, it’s better to work with a lender or bank. You can get financing through this seller, which gives you more negotiating power and better terms. 

The Bottom Line

Kelley Blue Book is a great resource, but it’s not the only one out there. Be sure to consult other resources, establish a limit and do a thorough inspection. This way, you’ll be confident when it comes time to place a bid. To browse repossessed cars, trucks, RVs, boats, etc. in your area, visit RepoFinder.com. It’s FREE! 

how to get a repossessed truck

3 Steps to Buying a Repo Truck

Are you interested in buying a repossessed truck? 

It’s easier than you might think! 

Plus, buying a repo truck is a great way to get the vehicle you want at a price you can afford. Banks and credit unions often have lists of repossessions on their websites that include new trucks, old trucks, compact trucks, mid-to full-size trucks and more. Some of these repossessions are in great shape and ready for a new owner.

Here are three simple steps to buying a repossessed truck – or any vehicle for that matter!

Step 1: Browse the Listings.

The first step is to find a truck that meets your needs. Because it can be tiresome to search through all the local banks and credit unions in your area, use a tool like RepoFinder.com. This free tool allows you to search for banks that are selling repossessions. Choose your state and click on the bank names to start your search. 

Step 2: Make an Offer. 

Once you’ve found a repo truck, you can make an offer. Usually, the banks already have a price in mind that is based on the truck’s book value or recent appraisal. Don’t be afraid to offer less. Banks just want to get rid of repossessions and recoup their losses. 

Typically, offers are made in the form of bids. Some bids are open, where you can see what other people are offering, and other bids are closed. Open bidding is most common because this allows people to compete against each other and win the highest bid. If your offer isn’t accepted, don’t get discouraged. There are plenty of repossessed trucks that need owners! 

Step 3: Complete the Inspection.

Most lenders allow bidders to do an inspection of the vehicle. If you’re not sure what to look for, bring along someone who does. Once you buy the truck, it’s your responsibility, so you want to know what you’re getting into. 

Here are some of the things we recommend inspecting/testing: 

  • Heating/cooling
  • Brakes 
  • Power steering 
  • Windows and locks
  • Tires, battery and air filter 
  • Signals, brake lights, reverse lights, headlights 

Also, pay attention to signs of water damage or rust. Severe water damage can leave the truck totaled. Repairing or fixing rust is expensive and generally not a cost you’ll want to incur. 

In the end, buying a repossession is a lot like buying a truck from a dealership and a private seller. You get assistance with the financing and paperwork while have the power to negotiate. For a full list of repossessions in your area, visit RepoFinder.com today.