Tag Archives: repo vehicles

repossession

What Does it Mean to Buy a Repossessed Vehicle?

Are you thinking about buying a repossessed vehicle? It helps to know the facts about these vehicles so that you know what to expect. Some people think that repos are always in poor condition, but this is not necessarily the case. In fact, many people are able to purchase the car they want in great condition for a fraction of the price! However, patience and diligence are two qualities you’ll need.

Below is more information about what a repossessed vehicle is and what this means for you. 

What are Repossessed Vehicles? 

Owning a car can be a luxury, but it also comes with a steep price tag. According to Experian, average car payments are $554 for a new car and $391 for a used car. If you have other financial obligations like a mortgage payment or student loans, paying hundreds of dollars for a car every month may not be feasible.

As with other purchases, it’s common for people to overbuy on their vehicle. They can easily get swayed by the latest features or a newer model and end up taking on more than they can afford. For others, it’s a change in financial circumstances that makes it impossible to keep on top of their payments. 

Now, you might be thinking, “why not just return the car?” but it’s not that easy. Cars depreciate around 20% to 30% by the end of their first year. From years 2-6, depreciation ranges from 15% to 18% per year. This means that by year 5, cars have already depreciated by 60% or more of their initial value. 

How Quickly Can the Banks Repo Cars? 

Most people who buy cars use financing to do so. By taking out an auto loan, the borrower is agreeing to make the monthly payments on-time each month. If they don’t hold up their end of the deal, the lender has the right to take away the car. 

How quickly a car is repossessed depends on the lender and your state. Some lenders don’t start the repossession process until three payments are missed, while others will start it right after one missed payment. By law, lenders have the right to take your car away the day after a missed payment!

When are Repos Made Available to the Public? 

Once the car is repossessed, the banks usually try to give the owner another chance to catch back up. If this doesn’t happen, they’ll auction the vehicle off. Cars in poor condition are usually sent to a junkyard and not listed for sale. 

Repossessions come at a discount. This is what makes them valuable to car buyers. Many of the vehicles put up for auction are in good condition. However, they most likely haven’t had any maintenance, as the owner couldn’t even afford to make the payments. But with a bit of attention, most of the cars will be as good as new! 

Well, there you have it. Now you know about repossessed cars, where they come from and how they become available to the public. RepoFinder allows you to buy repossessions directly from banks and lenders. These are true repos at discounted prices. View our database for free and see what’s available in your area!

red repo car suv

Top 5 Things You Didn’t Know About Repossessions

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

Thinking about buying a repo car, truck or SUV? RepoFinder has a wide selection of repossessions being sold directly from the banks and credit unions. As long as you’re patient and do your research, you should have no problem finding a vehicle at a discounted price. Keep reading for five things you probably didn’t know about repos. 

1. To save money, you have to buy repos directly from the bank.  

Dealerships often market “repo vehicles for sale” but they’re typically not true repos. Instead, dealers buy these cars from auctions, fix them up and sell them to the public. By this point, you’re getting essentially any other used car.

To get a true repo, it’s best to shop directly with the source: a bank or credit union. These institutions make money by lending money, so when a person stops making their car payments, they take away the vehicle. To recoup their losses, the banks will sell these cars directly to the public – no middle man. 

2. Repos are often in good condition. 

It’s true that repos are not always in good condition. When people stop paying on their car, they typically stop paying for maintenance, too. Some may even damage the car once they receive notice of repossession. Fortunately, the banks often send these vehicles straight to auction. 

We always encourage car buyers to do their research, but rest assured you can find a great selection of repos in good condition on RepoFinder. Many owners are unable to afford their new car payments, and some even turn their vehicles in voluntarily. 

3. You can save money – but not always. 

Repos are sold “as-is.” This is why they are priced lower than average, as you’re taking on whatever repairs the car needs. Cars are worth buying this way as long as they only need basic repairs and maintenance – new tires, oil changes, etc. Be wary of buying a repo that shows signs of bigger problems because you will end up inheriting them on your dime. 

4. You’re responsible for doing your own research. 

Car salesmen can be bothersome, but it’s also nice to have someone showing you the ropes and assisting with negotiations and paperwork. When browsing repos, you’re essentially on your own. You have to watch out for yourself, so be sure to research the cars you’re interested in, ask the seller questions about the vehicle’s condition and have an inspection done. Also, know the NADA Guide’s lowest value and bid accordingly. 

5. You’ll have to be patient. 

Buying a repo isn’t like buying a new car. You can’t just walk into a dealership and drive away with something new on the same day. 

Even though there are many online auction sites, repos are a bit more difficult to get than people realize. Good quality repos are in demand, and there’s often multiple people bidding on them. Take your time, research each vehicle and make a strong bid. It could take weeks to hear back, so be patient. 

Find a Great Deal on a Repo Today 

Browsing the repo inventory on RepoFinder.com is always free! If you choose to upgrade to RepoFinder Pro, it’s just $4.95 a month (cancel anytime). This membership allows unlimited searches, full access to our repo list and the ability to buy directly from the bank – no sales, commissions or dealer’s license required!

car windshield shattered in an accident

How to Tell if a Used Car Has Been in an Accident

If you’re looking for a cheap used car, you’ll have great luck browsing repo inventory. Despite popular belief, repo cars, trucks and SUVs are often in good condition. Most need a good cleaning and some basic maintenance but that’s it! 

However, it’s important to know that repos are sold as-is. They are priced just right, but you also inherit all of the problems. It’s not like shopping at a dealership where you can return the car if you don’t want or like it. 

With this in mind, there are certain things you’ll want to watch for when shopping for repos. One of the most important is making sure the car wasn’t involved in an accident. Improper crash repair can affect the way the car drives. 

Below are some signs that will help you determine if a repo vehicle has accident damage. If you spot these red flags, we recommend passing up the vehicle and looking at something else. 

Repainting 

Most collision work involves some type of paintwork. Even the best paint jobs usually leave behind some signs. Start by looking at the colors, sheens and finishes. They should all match up. 

Next, walk the length of the car and look at the reflections in the bodywork. Any waves or changes in luster may indicate that a panel was repainted. Also look for paint drips on panel edges or overspray on tailights, exhaust pipes and headlights. 

Spacing Between Body Panels 

Another thing to look for is inconsistent spacing between body panels. All gaps should be even throughout the vehicle. If you find that one gap between the door and body panel is not consistent with the others, it’s possible that there’s damage here. Of course, not all cars are perfect, but manufacturer defects should be subtle.

Frame Damage 

If possible, ask if you or the seller can drive the vehicle back and forth. This may not be possible with a repo, but it’s worth requesting. Watching the vehicle in motion lets you see if there is frame damage. Cars with this type of damage often drive sideways instead of forward.

If you’re not able to drive the car, get low to the ground and look for signs of “crabbing.” Crabbing is a sign of frame damage that happens when the front and back wheels don’t line up correctly. It typically comes from more serious accidents. 

Fresh Undercoat 

One of the first steps in repairing a wrecked car is adding a rubberized undercoat to the underbelly of the vehicle. This spray protects the car from salt, road grime and other contaminants. Even though it works great, be wary of why it’s there. Sometimes, people will apply a fresh coat to the underside to cover up recent damage. 

Missing Fasteners and Rusty Screws 

Having a few loose screws might not sound like a big deal, but it can indicate a larger problem. Loose screws, especially in the fender lines, means the car was involved in some rough road conditions. The screws might be missing because they no longer line up. 

Look for missing or loose screws in the wheel well, along the frame of the engine bay and within door jams. Rusty screws are also a problem because they typically indicate that the car has been smacked around. 

So what if you notice signs of damage? We recommend choosing a different vehicle for your own safety. But if you feel comfortable purchasing the car, you can always ask the seller for a discount. If you point out the areas of concern, they’ll probably be willing to work with you. For a full list of repossessions in your area, shop on RepoFinder.com today. 

SUV car

How Do I Buy a Car from RepoFinder?

If you’ve landed on our website, you’re probably shopping around for a car and looking for a great deal. We’re the place to make this happen! Our website offers a full list of banks and credit unions that are selling repossessed vehicles. (You can learn more about repossessions here). Even though the banks take these vehicles back, they don’t care to keep them. This is why they sell them to dealers or the general public. 

Many banks and credit unions choose to sell their repo inventory to dealers because they can get rid of many vehicles at once. Unfortunately, everyday people who are looking for a discounted vehicle aren’t able to access this inventory. But, you’re in luck! RepoFinder only sells to the public. This allows you to purchase repos directly from the source.

What are the Steps to Buying a Vehicle from RepoFinder? 

Whether you’re shopping for a car, truck, SUV or recreational vehicle, RepoFinder has it all. We even get small aircraft and boats! We’ll walk you through the process of buying a repossession so that you know what to expect. Please note that each bank and credit union has their own process for selling repos, so there may be some slight differences. 

View our list of repossessions

Start with our USA map and click on your state. This will pull up all of the banks and lenders that sell repo inventory. Because banks are always getting new vehicles, check back often if you don’t see something you like right away. Repo sales require patience! 

Make an offer 

When you find a vehicle that fits your needs and price range, you can make an offer. Most repos are priced by the bank based on the vehicle’s book value or recent appraisal. However, don’t be afraid to offer less. 

Sometimes you can see what other people are offering (open bid) and sometimes you can’t (closed bid). Open bids are more common because you can compete with others. You can give your offer verbally over the phone or by filling out an online form. 

Inspect the vehicle 

If your bid is accepted, it’s important to do your due diligence. Only work with sellers who are willing to let you inspect the vehicle. You may not be able to take it for a test drive, but you should be able to look at its condition. Remember, you don’t get protection with a repo, so it’s yours to keep once you drive it off the lot. 

Purchase the vehicle 

Once you’re comfortable with the purchase, you can proceed with the sale. The benefit to working with the banks is that you can get financing directly from them. In fact, banks are often willing to negotiate better pricing, terms and interest rates when you buy direct. And, you don’t have to deal with pushy salespeople working for commission. 

Hopefully you can see how easy it is to buy a car from RepoFinder. Remember these three things: be patient, do your homework and check back often. If you keep these things in mind, you should have no trouble finding a great vehicle at a fantastic price! 

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! 

car keys in hand

What Happens if a Car Doesn’t Have a Title?

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

A car title proves that you are the owner of a vehicle. This is why the team at RepoFinder always recommends buying used vehicles with a title. Otherwise, someone who has the valid title can come and take your car away because they are the rightful owners – even if you paid for the vehicle. 

But what happens if you find a vehicle that you want and it doesn’t have the title? While it’s a risky move, there are some ways you can make a safer purchase. Below are some tips on how to buy a car without a title. 

Get background information 

First, do a little research. Is there a reason why the vehicle doesn’t have a title? It’s possible that the original document was misplaced or stolen. Some vintage cars are also difficult to register and obtain a title.

Here are some questions we suggest asking: 

  • Where did you get the car? 
  • How long have you had the vehicle? 
  • Is there a lien on the car? 
  • What is the VIN? 
  • Who has current ownership of the car? 

Make sure it wasn’t stolen 

It’s important to know that you are buying a legal car. You can use a tool like AutoCheck or Carfax to find out the legal status of the vehicle, as well as other information like its odometer reading, accident history and insurance claims. Additionally, check out the car’s VIN from your state’s DMV. However, be aware that your DMV may not be able to answer all of your questions due to confidentiality and privacy issues.

Get a bill of sale 

As long as there are no red flags, you can proceed with the sale. But, do protect yourself by documenting everything. The first thing to write up is a bill of sale. This will help prove ownership and document other information like if the seller is going to supply you with a replacement title. If this is the case, we suggest putting your money in escrow and not paying in full until you get the title. 

Get a surety bond title 

If the vehicle’s title was lost or stolen, you can request a lost title bond. These bonds protect the DMV from the loss of the vehicle and potential damages, as well as protects buyers from obtaining fraudulent duplicates of titles. Once everything is verified by the surety bond company, you’ll pay a percentage of the bond amount. As long as no issues arise, you can get a clean title in 3-5 years. 

While we don’t recommend buying cars without their titles, there are certain times when it makes sense to do so. When shopping for repo cars, you might find that some have “repo titles.” This is fine – all it means is that the car was repossessed. Once you purchase the vehicle from the bank or lender, the title is transferred to your name. To browse repos with clean titles, visit RepoFinder.com today. 

person riding an ATV

3 Reasons to Buy a Salvage ATV

Owning an ATV is important for many families. You can take these recreational vehicles on wide open trails, along the coast or up and downhill for fun-filled adventures whenever you want. Plus, ATVs get you out in the fresh air and away from TV and computer screens. 

Whether you’re looking to purchase your first ATV or add to your growing collection, a salvage ATV might be a great addition. Here are three reasons to consider shopping for a salvage ATV.

  1. Huge Selection of Vehicles 

If you have a tight budget to spend on recreational vehicles, consider salvage ATVs. These vehicles were damaged or deemed a total loss by the insurance company. They’re usually in rough shape, but that doesn’t mean they’re total junk. You could get lucky and find an ATV with minimal damage. Or, you could use the ATV as a project piece.

  1. Easy to Repair Damage 

Most salvage ATVs have sustained damage from an accident or flood. Nevertheless, you’ll find that some of these damages are repairable. If you have some knowledge in this department or know someone who does, it can be a lot cheaper to go this route. You can even purchase a salvage ATV for parts, allowing you to fix up an ATV that you already own. This, too, is usually cheaper than buying new. 

  1. Simple Buying Process 

You can easily find salvage ATVs from online auto auctions. Browse through the inventory and place a bid when you find the vehicle you want. Be sure to do your research so that you know what you should be paying for the ATV. Name brands like Yamaha, Honda and Kawasaki tend to be most expensive. If you win the bid, the auction house will arrange for shipment of the vehicle. 

Repossessed ATVS for Sale: Another Affordable Option 

If you’re an outdoor adventure enthusiast, an ATV is probably built into your lifestyle. Shopping for salvage ATVs is a great way to save money while getting the parts you need. But it’s not the only option. You can also shop for repossessed ATVs. 

Repo vehicles are not salvaged, and many are in great condition. They cost a fraction of the price of a new ATV and are available from credit unions and lenders. To view affordable repo ATVs for sale, check out the listings on RepoFinder.com. It’s free!  

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! 

man looking at vin in car

Buying a Repo: What Does a VIN Lookup Tell You?

If you’re interested in buying a repo car or truck, you can learn a lot of information from the VIN (Vehicle Identification Number). A VIN is a unique code given to every vehicle when it’s manufactured. It contains 17 letters and numbers that can be found on the vehicle’s dashboard on the driver’s side. The numbers may seem random, but each section gives information on the vehicle’s origin.

Here at RepoFinder, we always remind car shoppers to inspect the vehicles they plan on purchasing. There are many great repos out there, but you have to do your research! The VIN is a good place to start. You can use this free tool from the National Highway Traffic Safety Administration to check if the car is subject to a recall. 

Breaking Down a VIN 

VIN information is organized into groups. By looking at each section, you can get a lot of information on a vehicle. For detailed charts breaking down the meaning of each digit and letter, visit driving-tests.org

  • First letter or digit. The first letter identifies the country of origin. For example, cars made in the U.S. start with a 1, 4 or 5, whereas cars made in Canada begin with a 2. Letters may also be used to indicate a country, as is the case with England (“S”), Germany (“W”) and South Korea (“K”). 
  • Second letter. The next letter tells you about the manufacturer. In some cases, the letter stands for the manufacturer’s name – “A” for Audi, “B” for BMW and “G” for General Motors. However, this isn’t always consistent because the letter “A” can also refer to Jaguar or Mitsubishi. 
  • Third digit. The third number, when combined with the first two letters and numbers, tells you the vehicle’s type. 
  • Numbers 4-9. The next set of numbers describes the vehicle’s model, body type, restraint system, transmission type and engine code. 
  • Number 9. This number is the check digit, which is used to detect invalid VINs. 
  • Numbers 10-17. The next group of numbers indicates the vehicle identifier section. For example, Number 10 is the model year, Number 11 is the manufacturing plant and the last six numbers are the production sequence numbers. 

VIN Checks are Free

Now that you have the basics on what a VIN stands for, you can get to work checking the VINs of the repos you’re looking at. You can run a VIN check for free, but this will only provide you with basic information on the car. We still recommend talking to the bank or credit union that has possession of the vehicle and doing a thorough inspection. For a full list of bank repos in your area, visit RepoFinder.com

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!