Tag Archives: cheap cars

orange jeep

How Does RepoFinder Differ from Dealer-only Auctions?

RepoFinder offers a simple directory of banks and credit unions across the U.S. that sell repossessed vehicles. Repossessions are vehicles that have been taken back by the banks when the owner falls behind on payments. Sometimes, these vehicles are taken without warning or court approval. 

To use our services, all you have to do is click on your state and you’ll see a list of banks and credit unions in your area that sell repossessions. Some have active listings, and some may not. Be patient and check back often, as things change daily. Our services are free to use. When you find a vehicle that you like, you can negotiate with the banks and purchase it at a discount. 

Why Do Banks Sell Repos for Cheap? 

Because banks make their money by lending money to others, the last thing they want to do is take back a car. However, this is the only way to recoup some of their losses. So, they’ll usually see if the owner can catch back up on payments, and if not, the bank will sell the vehicle to the public at a discounted price. 

There are two main reasons why banks sell repossessed vehicles for cheap. The first is that they want a quick sale. Cars take up space, and banks aren’t dealerships, so they want them off their lots as quickly as possible. Second, repossessions often need some type of maintenance, so buyers need to factor this into their purchase. To make the vehicles more attractive, banks discount the price to offset some of the repair costs. 

How is RepoFinder Different from Dealer-Only Auctions?

Each bank and credit union has a different way of marketing their repo inventory. Many prefer to sell their vehicles at dealer-only auctions because they can get rid of many vehicles at one time. Remember, banks are just looking to recoup some of their losses. They don’t care where the vehicles go. 

Dealer-only auctions are closed to the public. Only licensed dealers can attend. And unless you plan on getting into the business of selling vehicles, you won’t be able to obtain a dealer’s license. Dealers purchase the vehicles they want at a discounted rate, fix them up and resell them to the general public. Often, these vehicles are marketed as “repos” but they technically are not. A real repo sale happens between you and a bank. 

What are the Benefits to Buying Repos Direct from the Bank? 

When you buy a repo directly from the bank, you can expect a wide range of benefits: 

  • Cheaper price. Repos are sold at heavily discounted prices. 
  • Ability to negotiate. You can offer less than what the banks are asking for. Don’t be afraid to negotiate! 
  • Bank financing. Because you’re buying from the bank, you can also get help with the paperwork and financing. 
  • Commission-free. A commission-free environment ensures less pressure on you, plus the ability to work out better pricing. 
  • No emotional attachment. Banks have no emotional attachment to their vehicles. 

Ready to shop with RepoFinder? Enjoy a comprehensive list of banks and credit unions in your area that are selling repossessions. 

driving in the summer

Why Summer is the Most Expensive Time to Buy a Car (and Ways to Save)

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Summer is great for many things, but buying a car isn’t one of them. Cars tend to be most expensive during this time, usually after the Memorial Day sales. One of the reasons why car prices tick up in the summer is because the weather is nice and people are out looking at cars. People also tend to be on the road more in the summer, motivating them to buy something new. 

Of course, there are other factors at play as well, such as the time and day of the week. Monday, Tuesday and Wednesday are usually the best days to go car shopping because there’s less consumer traffic. Car dealers are often more willing to negotiate in order to sell a vehicle. On the other hand, weekends are busy, making it harder to get personalized attention.

If you don’t have time to wait and you need to buy a car this summer, there are a few ways you can save. 

Shop When Next Year’s Models Arrive

Dealerships have limited space, so when they get in their newer models, they need to sell off their older stock. These models often come in the late summer/early fall, so you can use this to your advantage.

While the newer models may have a few more design features and progressive styling, there’s usually not much difference between the current model and next year’s model. This means that you can get a new car for a lot less than a few months ago. 

Watch for Summer Holiday Sales 

The summer has some great holidays for car shoppers – Memorial Day, Fourth of July and Labor Day. Most dealerships run some type of sale during these times to drive traffic in and move out some older models of cars. 

Vehicles that tend to have the best deals during the summer are trucks and SUVs. The appeal to these vehicles is that they offer four-wheel or all-wheel drive, making them most attractive during the winter. Gas prices also go up in the summer, making these vehicles less desirable. 

Purchase a Banked-Owned Vehicle 

If the dealerships are still too expensive, consider alternative routes for purchasing a vehicle. For example, you can buy a bank-owned car for a fraction of the price of used vehicles at the dealership. 

Bank-owned vehicles have been taken from their owners because they missed too many payments. The banks don’t care to keep them, so they end up selling them at highly discounted prices. Be patient, as it can take time to find the perfect repo. RepoFinder.com has a full list of repos listed out by state – find one today! 

Even though summer is a more expensive time to purchase a vehicle, your car may not be waiting for you. For low prices and a huge selection of repossessed cars, trucks and SUVs, shop on RepoFinder.com.

line of cars

Pros and Cons to Buying Bank Owned Vehicles

A bank-owned car can be a great deal – or a total nightmare. As with other purchases, it’s important to do your research and be a smart shopper. When you’re careful about your purchase, you can take home a safe, reliable car for a fraction of the cost. And, banks have more than just cars. Many people turn to bank-owned inventory when buying pickup trucks, boats, ATVs, RVs and small aircraft. 

Below you’ll find the pros and cons to buying bank-owned vehicles, and then you can decide if this route is right for you. 

Pros of Buying Repossessed Vehicles 

When the owner of a vehicle doesn’t make their loan payments, their vehicle can be taken away by the bank. Usually this happens after a few months of defaulted payments, but it can happen even sooner than that. Some people assume that repos are always old, beat up cars that no one wants, but it’s often the new cars that people can’t afford. 

Here are the pros to buying bank-owned vehicles: 

  • Get a great deal on a decent vehicle. Banks and lenders want a quick sale to reduce their loan loss, which is why they price their inventory low and are willing to negotiate. 
  • Shop a wide selection. Cars and trucks are taken away all the time from their owners. Banks end up selling them to dealerships, the general public or auction sites, leaving you to shop an impressive selection of cars, trucks, SUVs and more. 
  • Fast turnaround. While you do need to be patient when shopping for repos, the process usually moves quickly when you find something you like. Banks and lenders want these vehicles off their lots as soon as possible. 

Cons of Buying Bank-Owned Cars 

There are some disadvantages to buying repossessed vehicles, which is why they aren’t for everyone. Here are some cons to be aware of. 

  • Lack of test drives. It’s possible that you won’t be able to test drive the car before you buy it. This can be a problem if there are hidden issues. To offset this risk, be sure to look at the vehicle’s pictures, get a condition report and schedule an inspection. 
  • As-is purchase. If you buy a repo and decide you don’t like it, you can’t bring it back. You’re stuck with it because all repos are “as-is” purchases. That said, some vehicles still carry their original warranty, which is passed down to the new owner. 
  • Unclear background. Banks usually send out a third-party to repo vehicles, so you probably won’t know a lot about its background. The good news is that you can find most of this information online, as auction centers must disclose this information to the buyers. 

As you can see, there are clear pros and cons to buying bank-owned cars, trucks and RVs. RepoFinder.com has a vast selection of vehicles that are in good condition and have low mileage. Take a look and see what types of vehicles you can find in your price range – it’s free! 

man shopping for cars

Do I Need a Dealer’s License to Buy Repossessions?

If you’re interested in buying a repossessed vehicle for sale, you might be wondering if you need a dealer’s license to do so. Depending on who you buy the repo from, it’s possible that they may require a dealer’s license. But, not every repo seller does.

RepoFinder.com is a nationwide directory of banks and credit unions that sell repossessions to the public. You do NOT need a dealer’s license to buy any of the vehicles listed on our site. Let’s learn more about what a dealer’s license is, when you need it and why RepoFinder does not require one. 

What is a Dealer’s License? 

A car dealer’s license is required to start a dealership business. This license allows you to purchase new vehicles from car manufacturers and used vehicles from auto auctions. The benefit of having this license is that you can buy vehicles on a large scale. So, if you wanted to purchase ten vehicles from a repo auction, you could do so with a dealer’s license. 

To obtain a dealer’s license, you need proof of a federal tax identification number and evidence of your company’s name and location. Additionally, you need proof of insurance to cover all of the vehicles you plan to sell at your dealership. 

Why Would Someone Use a Dealer’s License to Buy Repos? 

Repossessed cars, trucks and recreational vehicles are hot. They are sold at highly discounted prices because the banks and credit unions are trying to recoup their losses. It’s not uncommon for repos to need some basic maintenance and repairs, as many haven’t received this from their owners. But, they tend to be in decent condition with few major problems. 

For this reason, the dealerships love getting repos. They can purchase the cars in bulk at a discounted rate, fix them up and sell them for as much as any other used car on the lot. This is why some repo listing sites and auctions require a dealer’s license. 

Does RepoFinder Require a Dealer’s License? 

RepoFinder sells repossessed vehicles to the public, so you do not need a dealer’s license to purchase a vehicle through our repo listing site. However, it’s important to know that each bank and credit union has different processes for selling repos. Therefore, you’ll want to visit each individual site to know what you need to purchase a vehicle.

For example, some banks will make you go through the bidding process while others allow immediate purchases. We do recommend working with banks that let you see the vehicle before you sign anything. Once you sign the paperwork, the car is yours whether it drives or not. 

RepoFinder.com makes it easy to shop for repossessions in your area. Check back often, as new repossessions are being added all the time! 

parking lot

What Do Banks Do with Repossessed Vehicles?

Most people who buy cars and trucks borrow money from the bank to do so. This means that they don’t own the vehicle free and clear, even though it’s theirs to drive around and maintain. If they stop making their monthly payments, the lender can take the vehicle away from them. This is often done without warning. Lenders might send a driver to get the car or take it away with a tow truck. 

Even though lenders don’t tell people when they’re coming to pick up the car, it’s not a surprise. When borrowing money from a lender, you have to agree to specific terms. This includes making your payments on time and maintaining insurance. If you don’t meet these requirements, the bank has the right to take the vehicle away. 

So, where do these vehicles go once they are taken by the bank? Surely they don’t sit in the parking lot! Let’s learn more about where repossessions go and how people like you can benefit from them. 

Where Repo Cars and Trucks Go 

When the bank comes to collect a car, truck, boat, etc. that is behind on payments, they often bring them to third-party storage facilities. These facilities specialize in managing the repossession and storage of repos. In some cases, however, the banks provide their own storage. 

Regardless of where the repo is being stored, the banks will hold it there until they list it for sale. In the meantime, they hope that the original owner makes payments and takes back the vehicle. If the owner cannot do that, the car is listed for sale. Lenders might sell the car to a dealership, while others organize auctions or list the vehicles on their website where private sellers can place a bid. 

How Repos Benefit the General Public 

The goal for the lender is to recoup some of their losses. This isn’t always possible, though, because repos are sold for a heavily reduced price. If the lender wants to recoup more of their losses, they will try to collect payment from the original owner – this “loss” does not get passed onto the new buyer. That said, the lender is responsible for selling the car at a reasonable market price. 

Here are some of the ways that repossessed vehicles help out the general public:

  • Affordable prices. Cars are expensive and not everyone can afford a new car payment. Repos are sold at low prices, allowing people to get a good vehicle at an affordable price. The affordability of these vehicles also makes them great for teens and college students and older adults who don’t drive much. 
  • Safe, reliable cars. There is a stigma that repo cars aren’t good cars, but this isn’t the case. Older vehicles are often paid off. It’s the newer vehicles that people have trouble affording and end up defaulting on their loan (average car loans are between 2 and 6 years). In reality, repos are often newer cars that are in good condition. 
  • Less waste. Rather than abandoning repossessed vehicles, they are sold through auction sites and dealerships to people who need them. Furthermore, it may be more environmentally friendly to drive a used car because it has less carbon dioxide emissions. 

Ready to check out the repossessions in your area? Visit RepoFinder.com, click on your state and find the banks, lenders and credit unions that are selling repossessed vehicles at great prices! 

driving a repo car from a credit union

Is it Smart to Buy a Repo from a Credit Union?

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! 

used car for cheap

How to Find a Used Car for Under 10K

According to Experian, the average car price for 2019 tops $34,000! That’s a lot of money for a vehicle, especially when you start factoring in all the costs associated with having a car – insurance payments, oil changes, gas fill-ups, tire replacements, etc. 

Whether you’re on a tight budget or are purchasing a car for a young driver, paying over $30k might not seem reasonable. Fortunately, there are ways to get a dependable vehicle for $10k or less. You might have to wait longer, but the right car will come along. 

Browse Repossessions 

One of the best ways to find a cheap used car is to look at the repossessions in your area. Check with banks and credit unions for a complete list. If you do a simple search online, you’ll probably end up looking at dealerships that are selling so-called repos. You’ll end up paying more for these vehicles, so stick to local banks, lenders and credit unions. You can find a full list of repos in your state by visiting RepoFinder.com

Know How to Negotiate 

Negotiations can save you a few hundred dollars or more on a used car. The key is to do your research and know what the car sells for so that you can be an effective negotiator. If you’re interested in a repo car, you’ll find that many banks and lenders are open to negotiations. They’re looking to move repos as quickly as possible so they can get them off their books. A fair, reasonable offer is a win-win for both of you. 

Shop at the Right Time 

Some times of the year are better than others to shop for a car. Generally speaking, it’s best to shop late in the year and late in the month. Car dealerships have sales quotas they have to meet, which typically break down to monthly, quarterly and yearly sales goals. In order to reach these goals, dealerships may push harder to get cars sold at the end of a month, which means lower prices and better negotiations for buyers. 

Do Your Research 

Always do your research when shopping for used vehicles, whether they be “for sale by owner” or repossessions from your local credit union. Find out what the car is worth, as some makes/models have a low resale value. Others have reoccurring defects, hard-to-find parts or costly maintenance that will have you spending a lot more than $10k in the first year. It’s better to pay more initially and get a great car in the long run. 

With average car loans around $30k, it’s no wonder why many people are getting savvier with their vehicle purchases. There’s no reason to spend this much money if all you need is a clean, reliable car to get you to and from where you need to go. RepoFinder.com has a full list of banks, lenders and credit unions in your area with repo inventory. Browse our list and see what you can find for $10k or under!