Tag Archives: repossessed cars

repo car

5 Reasons Why Repos are a Great Deal

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If you’re in the market for a new car, you may be surprised by what new car prices look like these days. The average new car in America sold for $48,043 in June, the highest figure on record and the first time the average has gone over the $48,000 mark. 

Average prices for used cars are way up, too. The average markup is around $10,000 and still growing, with average used car prices around $35,000.  

If you want to save money while still getting a great car, another route to entertain is a repossession. Repo vehicles have been taken from their owners for nonpayment. Many are in good condition but need some TLC like a break change, oil change and full clean. 

Below are five fantastic reasons why repos are a great deal. 

1. You can save up to 40 percent. 

Obviously, the main reason to purchase a repo car is because you want to save money. And there’s certainly nothing wrong with this! Why pay full price on a car that will depreciate in value as soon as it’s driven off the lot? 

With repos, you can save an average of 25 to 40 percent from what you would pay for a new car. Lenders aren’t in the business to sell cars. Their goal is to move this inventory and recoup their losses. 

2. There’s a great selection to choose from. 

Tired of looking at empty dealership parking lots? RepoFinder provides a directory of links to all the banks and credit unions selling repos. We update our inventory regularly, so you can always find new vehicles being added. Find new cars, old cars, SUVs, classics, sedans, minivans and so much more. We even have aircraft, boats and ATVs! 

3. You can negotiate the price. 

Most repos require you to place a bid. If the bid is open, you’ll be able to see what people are bidding. If it’s closed, you won’t. To place a competitive bid, know what the car is worth and the work you have to put into it. Don’t be afraid to offer less – negotiations are welcome and even encouraged. 

4. You can get the car right away. 

Another perk to purchasing a repo car is that you can often take the vehicle home right away. With the recent chip shortage, people were waiting up to 12 weeks for their vehicles to come in! 

While there is slightly more inventory now than there was, it’s still taking a long time for new cars to be delivered. Because of this, more people are holding onto their used cars. A repo is ready to buy now. Place your bid, wait for it to be accepted and close the deal. 

5. No commissions, fees or pressure – shop on your own terms. 

RepoFinder is unique because we conduct business online. Once you find a car that you like, you can communicate directly with the seller. But, unlike dealerships where you work with a car salesperson, you don’t have to do this with repos. The banks are looking to sell this inventory for a fair price, and there is no obligation to buy. 

As you can see, repossessed cars are a great deal! You can save time and money, while also getting a great car that you can start driving right away. 

sedan car

Buy a Car You Can Afford with These Tips

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Like most everything else these days, car prices have skyrocketed. Cars have always been expensive, but the pandemic has had a tremendous impact. First, car prices rose due to high demand and low inventory. We’re hoping that prices will drop as supply chain issues are fixed and there’s a better balance between supply and demand. 

However, now we’re dealing with a new problem: rising inflation. Inflation is driving up car prices, just as it is fuel, groceries and utilities. In 2021, inflation rose to 7 percent, the biggest increase in nearly 40 years. Used car and truck prices shot up 37 percent last year, with the average used vehicle costing $29,000. 

If you need a new vehicle, you might be stressing about how you can afford it. Below are three tips that will help you afford a vehicle of your choice! 

Set a Monthly Number 

The first step when buying any car is to set a monthly budget for what you can afford. Don’t forget your car insurance payments, too. Experts recommend spending no more than 15 percent of your monthly take-home pay on a vehicle. Depending on your budget, you may have to stick closer to 10 percent. 

Based on these numbers, if you were to bring home $3,000 a month, your car payments should be around $300 to $450 a month. This is actually a good number to work with, providing that you’re interested in buying a sedan or coupe. If you’re looking for an SUV or truck, it might be more of a stretch. 

Calculate Your Monthly Payment 

Once you know how much you can spend, you can start shopping around for vehicles in your price range. New car ads and review sites generally list out the MSRP (manufacturer’s suggested retail price), but you can use a calculator to determine what your monthly payments will look like. 

To get an accurate picture of what you’ll be paying, be sure to enter in your down payment and interest rate on the site’s calculator. Your interest rate depends on your credit score. Average interest rates with good credit (661-780) are 3.56 percent for new cars and 5.58 percent for used cars at the time of this writing. 

Shop for Repossessed Cars 

With the market being as competitive as it is, it’s helpful to shop for cars in different ways. For example, some people are shopping online and having their vehicles delivered to them. Others are attending auctions in their area. Another option you may not have yet considered is repossessed vehicles. 

Repo vehicles are those that were taken away from their previous owners because they defaulted on their loans. These cars are often newer and in good condition – their owners just could no longer afford them. Many repossessed cars are sold in auctions, but RepoFinder sells them to the general public. 

You can save up to 30-40 percent on a repossessed vehicle. And, because RepoFinder features vehicles being sold by banks and credit unions, you can often work out an even better deal by securing financing through them! To learn more about purchasing a repo car in your area, shop with RepoFinder today! 

save money used car

How to Save Up to 40 Percent on a Used Car

With new cars topping $47,000, it’s understandable why you’re shopping for used vehicles at discount rates. But even used cars are expensive these days! A used sedan might only cost around $20,000 to $25,000, but a used SUV or pickup truck costs an average of $37,000! 

If these prices are still out of your budget, rest assured that there are additional ways to save money on a used vehicle.

Consider Repossessed Cars 

The first piece of advice is to open your search to repossessed vehicles. Repo vehicles are cars that have been taken from their owners because they couldn’t afford to make the payments. They are now in possession of the lender (i.e., bank or credit union) and ready to be sold.

Banks and credit unions are highly motivated sellers because they don’t have the space or capacity to store and sell cars. Browse RepoFinder’s database – it has hundreds of repo cars, trucks, sedans, etc. that you can place a bid on today! On average, repo cars are between 25 and 40 percent cheaper than new cars. 

Shop for Vehicles Online 

Another way to save money is by shopping online. You can see what’s available at local dealerships, saving time and hassle from driving from one dealership to the next. You can also expand your search by looking at cars in other locations, such as the next closest state or city. 

The nice thing about shopping online is that you can take your time and make a good decision without pressure from a car salesperson. This could end up saving you hundreds or thousands of dollars, as it’s easier to spend more when you’re in a high-pressure environment. 

Get the Right Financing 

When you buy a car through a dealer, you’re more likely to use their financing department. While there is nothing wrong with this – it’s quick and convenient – you probably aren’t getting the best deal. 

When you shop for cars on your own, you have the option to check interest rates through multiple lenders. You can then get a pre-approval from the lender with the best rates. Most lenders allow you to complete the application process online, so there’s not much you have to do but fill out some paperwork. 

Keep Your Loan Short 

Even though your payments will be smaller if you stretch out your loan to 72 or 84 months, you’ll end up paying more for your vehicle over time. And, if your car is getting older and experiencing problems after four years, you’ll still be locked in.

If you can swing it, keep your loan short. This way, you’ll be able to pay off your loan faster, and you won’t find yourself underwater if something happens to your car. 

Make a Down Payment 

If you sold your previous car to a private buyer, you can use this money for a down payment. A sizable down payment shortens your loan, and it can help you lock in lower interest rates. This happens because a down payment lowers your loan-to-value (LTV) ratio on your financing, making you more attractive to lenders. 

If you don’t have a sizable down payment, look for specialized online lenders that offer low-rate auto loans without down payment requirements. Credit unions may also be willing to work with you. 

These are some of the best ways to save up to 40 percent on a used car. Keep in mind that there are many ways to save – it’s not just the purchase price that makes a difference. For savings of up to 40 percent, shop with RepoFinder.com

loan for repo car

Can I Get a Loan for a Repossessed Car?

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If you’re shopping around for a bank-owned vehicle, you’ll be glad to know that there’s a wide selection to choose from – and all at great prices. But one question that many car buyers have regarding repossessed vehicles is what type of financing options are available. 

When you purchase a vehicle from a dealership, you have the option to use their financing department. It’s quick and easy, especially if you’re trading in a vehicle at the same time. But when shopping for a repo car online, you don’t have these same options. So what can you do? 

Fortunately, financing for repossessed cars works in the same way as it does for any other car purchase. While there might not be a dedicated financing department on hand, you can still finance your purchase. The difference is that you’ll have to do the legwork beforehand, such as by filling out applications and getting pre-approved. 

Let’s cover the different financing options you have when buying a bank-owned vehicle. 

Banks 

RepoFinder offers a huge database of repossessed vehicles from different banks. Banks are highly motivated sellers that are often willing to negotiate. And, the benefit in buying from them directly is that they can provide you with financing as well. 

You can also obtain financing through a bank before buying a car. All you need is a pre-approval, and you can present this to the seller when you’re ready to purchase the vehicle. Your loan will be finalized when you purchase the car. 

Credit Unions

Credit unions work similarly to banks, though there are a few differences. To apply for a loan through a credit union, you typically need to be a member, which involves opening an account and making a deposit.

The benefit to credit unions is that they are more lenient than banks. If you have poor credit or a limited history, they’ll be more understanding. At the same time, they are not as convenient as banks. You may have to make your payments through mail instead of online, for example. 

Online Lenders 

Another option that car buyers have is to obtain financing through an online lender. Since most people shop for repo cars online, you may find it easiest to access financing this way. Online lenders are fast, convenient and often have lower rates. But you’ll still want to do your research and compare rates. 

The only thing to watch for with online lenders is that they don’t always have the best customer service. They’re designed to be quick, streamlined and convenient, so customer service is generally online and not through a real person. 

The most important thing to know is that you can get an attractive, flexible loan with great terms when buying a repossessed car. To shop for bank-owned vehicles in one central location, browse through the RepoFinder database today. 

used repo car

Why Used Cars are Better than New Cars

A common challenge for car buyers is whether to buy a new or used vehicle. If you can afford it, buying a new car is certainly worth the excitement. You get a brand new car, just the way you want, and with the full warranty still intact. Plus, new cars feature the latest technology and safety features, as well as higher fuel efficiency and lower emissions.

But as wonderful as these features are, you’re going to pay dearly for them. According to Kelley Blue Book, the average price Americans paid for a new car topped $47,000 in December 2021. This is A LOT of money! Bankrate reports that the average monthly car payment for new cars is $609. 

If you’re not in the market to spend this much on a new vehicle, there are plenty of things to love about a used car. 

Cost Savings 

Obviously, the biggest benefit to buying used is the cost savings. Used cars cost far less than new ones, not just in the overall price of the vehicle, but the taxes and fees as well. Also, insurance rates are often cheaper for used cars because the vehicle costs less to replace. Learn more about buying a used car for under 10k

Depreciation

Considering that new cars depreciate about 20 percent in one year, it’s not a bad idea to consider something previously owned. Used cars depreciate, too, but not nearly as fast. And, there’s no hit as soon as you drive off the lot. Also, some say there’s less ‘mental depreciation’ because the first parking lot ding or rock chip has probably already been made.

Warranty 

Most vehicles come with a manufacturer warranty of 3 years or 36,000 miles. But it’s not uncommon for new cars to have a bumper-to-bumper warranty of 5 years and a powertrain warranty of 10 years. If the new car you’re purchasing is only a few years old, this warranty gets transferred to you. 

Safety and Quality 

Today’s vehicles are meant to last much longer than they once did. Therefore, buying a vehicle that’s a few years old isn’t taking much life off. You’ll still be getting new technology and safety features. In fact, some buyers find that they’re able to get a package they wouldn’t have otherwise afforded in a new vehicle, allowing them to walk away with MORE, not less. 

Shop for Used Cars at RepoFinder

New cars are certainly tempting, but don’t let this deter you from the many wonderful used vehicles on the market. RepoFinder consistently turns over a huge inventory of pre-owned vehicles. These vehicles are repossessions, and many are in great condition but could no longer be afforded by their previous owners. Browse our selection of repo cars today!

leased car

Can a Leased Car Get Repossessed?

Approximately one out of four vehicles is leased each year. While this option isn’t for everyone, it can offer benefits such as lower monthly payments, lower maintenance costs and the option to get a new vehicle every few years. But what happens if the lessee stops paying on a leased vehicle? Can it get repossessed just like owned cars? 

The short answer: Yes. If a person is currently leasing a car and can’t afford the payments, it can be repossessed. Let’s explore more about repossessing leased cars. 

What Happens When the Lessee Stops Making Lease Payments?

When a person leases a vehicle, they’re making an agreement with the lessor (or the company they’re leasing the car from) to make their payments on time. If they don’t, it’s a breach of the lease, and it will trigger the lessor to send a tow truck to come and get the car. It doesn’t take much for this to happen. Usually, just a couple of missed payments can get the vehicle taken away. 

Now, when a lessor takes the car away, is this the same as repossession? Yes, it is. If the lessee doesn’t authorize the option of having their car repossessed, it’s referred to as an “involuntary repossession.” If they do volunteer or authorize having the car repossessed, it’s called a “voluntary repossession.” 

Either way, it’s not a happy situation because it can cost a lot in fees such as: 

  • Early termination fees
  • Remainder of lease payments 
  • Past-due payments 
  • Excess wear-and-tear and mileage fees
  • Cost of repossession 
  • Cost of resale 

Is it Common for Cars to be in Repossession? 

Repossessed vehicles are not uncommon, especially in this day and age where the average new car costs roughly $47,000. If you face any type of hardship, it’s going to be very difficult to make these payments on time. According to recent data, roughly 2.2 million vehicles were repossessed in 2021

What Happens When Cars are Repossessed? 

When a repossession happens, the owner typically has the opportunity to make up the payments and take back the vehicle. If they’re unable to do so, the lender will take possession and sell the car, usually through an auction. This is beneficial for the public community because they can purchase repo cars for a fraction of the price. 

However, many auctions are not public and require a dealer’s license. RepoFinder does not. We are the largest bank repo list in America, with links to thousands of lenders selling bank-owned vehicles. Browse our selection of repo vehicles today, including previously owned and leased cars in good condition! 

car driving through lavender fields

Why are Used Cars So Expensive Right Now?

If you’ve gone shopping for a used car as of recently, you were probably surprised to see just how expensive they are. And it’s certainly NOT your imagination. Used car prices have skyrocketed over the past year, and it’s possible that we won’t see these prices go down for quite some time. 

While some people are choosing to keep their current cars, others have no choice but to replace them. If you’re in this same boat, it’s important to understand modern car prices and tips for navigating this changing landscape. 

What’s Causing the Price Increase for Used Cars? 

You’ve likely heard about the chip shortage and how it has impacted new cars. This has had a trickle down effect, impacting the used car market as well.

Microchips are a necessary component for vehicles, and they’re slowing down production worldwide. With far less new car models to choose from, prices have skyrocketed. High dealer markups and a lack of options are forcing people to shop secondhand. 

In other words, a whole new set of customers are shopping for used vehicles and willing to spend money, since they were going to spend it on a new model anyway. This, coupled with low inventory from people not trading in their vehicles, has driven up used car prices. 

What are the Average Prices for a Used Car? 

According to Edmunds, the average price of a used car in November 2021 was $29,011, a sharp increase of 21.4 percent from the same time in 2020. And, more than 2 million used car buyers are purchasing vastly overpriced used vehicles, which means people are putting up the cash. 

However, when you compare that price to the average price of a new car – $47,000 according to Kelley Blue Book – it doesn’t sound too bad. The reality is that cars are expensive right now – new or old – and will continue to be so for a while. 

When Can You Expect Prices to Decrease? 

While no one knows the future, there are some predictions that will hopefully ease your mind. Business Insider predicts that by the end of 2022, prices of wholesale used vehicles will drop by 3 percent compared to the end of 2021. 

However, expect these prices to gradually decrease rather than there being one big drop. It won’t be until supply chains are fixed and production recovers that supply and demand will begin to even out. 

What if You Need a Car Now, But You’re on a Strict Budget? 

If the used car market is out of reach for you, there’s another option: repossessed vehicles.

RepoFinder offers a free list of banks and credit unions that are selling used vehicles, often in good condition. You can save a lot by shopping for repo cars, trucks and SUVs, and you can get the vehicle right away. 

Our inventory is always changing, so check back often if you don’t find what you’re looking for. Discover the many reasons why so many people are choosing to shop for repossessed cars instead of new or used ones – they’re accessible, easy to purchase and give you the most bang for your buck! 

salvage vs rebuilt title

Salvage vs Rebuilt Title: What’s the Difference?

A car’s title is a legal document that shows the business or person who owns the vehicle. Most vehicles on the market have a clean title, which means the car was never considered a total loss by an insurance company. However, some used vehicles for sale have a salvage or rebuilt title. 

Let’s learn more about salvage and rebuilt titles, the differences between them and what to look for when shopping for used or repossessed vehicles. 

What is a Salvage Title? 

A salvage title is a title for a car that was involved in a major accident and deemed a total loss by an insurance company. Because these vehicles can’t be driven on the road, they appeal to mechanics who plan to rebuild them. Once the work is done, the car will need to pass a state inspection. 

Be aware that every state has different laws about what constitutes a salvage title. For more information about salvage titles in your state, visit your local DMV. 

What is a Rebuilt Title? 

A rebuilt title was once a salvage title, but the vehicle was repaired and can now be driven on the road. For a vehicle to go from salvage to rebuilt status, it needs to be repaired, pass a state inspection and deemed fully functional. 

A car with a rebuilt title costs less than a car with a clean title because there was an accident and extensive damage at one point. But because the vehicle is now safe to drive, you can immediately register the car, put plates on it and get auto insurance. 

Should You Buy a Car with a Rebuilt Title? 

Buying a car with a rebuilt title is not a bad idea. You can save significant money, though be aware that the car will be worth less. But, it’s possible that the vehicle was repaired to the highest standards, so you can get a reliable, safe vehicle for a fraction of the price.

Also, cars with rebuilt titles are ready to register, insure and drive right away. However, it’s important to know that you may not be able to get full coverage with a rebuilt title. Get several quotes from different insurance companies to compare rates, and be honest about the title. 

And as always, we recommend having a full inspection when purchasing any used vehicle, particularly one that has been rebuilt. You want to be sure that nothing was missed during the original repair and inspection. 

driving in winter

Best Car Features for Snow and Winter Driving

If you live in a cold-weather state, you’ll need a dependable vehicle to carry you through the snowy, icy winter months. Thankfully, there are many features in modern vehicles that make driving in the winter easier, safer and more convenient. But how do you know which features are actually worth it – and which ones you can skip over? 

Below are the best car features to look for when buying a vehicle to drive in the snow and ice. They will keep you safe and make winter driving more comfortable. 

Winter Tires 

Once the first snowfall hits, you’ll need a reliable car with good tires. But not just any tires – you need tires that can handle the snow and ice. 

Winter tires, or snow tires, are not the same as all-season tires. They feature a unique material that allows them to stay flexible in below-freezing temperatures. Snow tires also have a unique tread pattern and deeper treads to reduce snow buildup. 

However, you won’t want to use these tires in the summertime because they’re much less effective at dispersing heat. To save money and drive safely, it’s best to switch out these tires in the summer. 

Advanced Safety Features 

Today’s vehicles have a host of advanced safety features, so which ones are really necessary? Obviously, we recommend anti-lock brakes and stability control (both required by law), adaptive headlights and forward collision avoidance. These features help improve visibility on the road. 

While not necessary, heated seats and heated steering wheels can make your drive more comfortable. Some other features that will help you drive easier in winter weather are: 

  • Automatic high beams
  • Blind spot monitoring 
  • Emergency braking 
  • Ground clearance 
  • Headlight washers and wipers
  • Rain-sensing wipers
  • Heated windows
  • Remote start 

All-Wheel Drive 

All-wheel drive (AWD) delivers power to all of your wheels instead of just two. This is crucial when driving in snow because if one or two tires lose traction, power is delivered to the other tires to help the car stay in control. 

Many modern vehicles drive the front or rear wheels continuously, while delivering power to the other set of wheels as needed. This is most efficient on fuel. However, there are some vehicles that deliver the same amount of torque to all four wheels at all times, though they are less fuel efficient. 

Winter driving is not for everyone, but if you live in a cold-weather state, you’ll probably be out on the roads in snow or ice at least a couple of times. To ensure you are safe and comfortable on the road, be sure to look for these features in your new vehicle.  

online car shopping

How to Find Repossessed Cars for Sale in Your Area

Are you shopping around for a used car at a bargain price? With pandemic-related car shortages, even used cars are selling for way more than they’re worth. For the best deals, you’ll want to check out repossessed cars. 

Repo cars are vehicles that the banks have taken back from the owners because they didn’t make their payments on time. Usually, the banks give owners a chance to catch up on their payments, but if they’re unable to do this, the vehicle is listed for sale. 

Oftentimes, dealerships scoop up repossessions at great deals, and then fix them up before selling them on their lot. But because they take some time to clean and repair major issues, consumers are paying more for them.

If you want a true repo car at a heavily discounted price, here are some tips for finding one. 

Online Auctions 

A large portion of repo vehicles make their way to auctions. Auctions are popular because they’re a way to reach a wide number of buyers. There are a number of online auction sites, so you’ll have to do your research to find the best ones. 

Some things to pay attention to include: 

  • Membership or registration fees. Most auction sites require you to have a membership. Even if you can browse the inventory, you’ll likely need to be a member to place a bid. Find out what each membership includes, how much it costs, how often you’re billed and if there’s a contract.
  • Selection of inventory. Ideally, you want to choose an auction site that has an extensive inventory of vehicles. This way, you have more to choose from. Some sites even sell recreational vehicles like ATVs, RVs, boats and small aircraft.  
  • How often the inventory changes. Pay attention to how frequently the inventory changes. The more often it’s updated, the more vehicles you’ll have to choose from, making it easier to find the repo car that you want. 

Police Repo Auctions 

Sometimes, it’s not the banks and lenders that are in charge of repossessing vehicles – it’s the police. This is especially common when repossessions are ordered by the court. However, police stations are unable to keep random vehicles on their lots, so they’re motivated to sell them at deep discounts. 

Lender and Bank Repo Sales 

Banks, lenders and credit unions sometimes also have their own inventory of repo cars. They’re usually hoping to recoup some of their losses, which is why they’re willing to sell them to dealerships and the general public at discounted rates. 

RepoFinder.com makes it easy to shop for bank-owned vehicles. We have repo lists from all over the country. Simply click on the state you live in, and you’ll be provided with a list of banks and lenders in your area. We continually update our inventory, and our membership is just $4.95 a month – no contract. 

Find your repo vehicle at a bargain price today!