Tag Archives: repossessions

vehicles at an auction

4 Things to Know When Buying a Used Car at an Auction

Auto auctions allow buyers to purchase used vehicles through a bidding process. This usually ends up being a lot less than what a dealership would charge. Not all auctions are open to the public, but some are. To find auctions in your area, you’ll have to do some research. Auctions are available both in-person and online, allowing you to choose the method of shopping you prefer. 

While auto auctions can turn up a great deal, there’s also the risk of buying a beater car. Below are four things to know about buying a used or repossessed car at an auction. 

1. Pick the Right Auction 

Both brick-and-mortar and online auctions are available. Some say that the best deals can be found in person, though shopping online is more convenient. It really depends on how you prefer to shop. You can usually shop at auctions for free, but prepare to pay some type of fee to make a bid whether it’s online or in person. 

Another thing to watch for is public vs dealer auctions. Public or open auctions are available to the public. Dealer auctions are only open to those who hold a dealer’s license. Unless you work at a dealership, you probably don’t have a dealer’s license.

2. Determine Your Risk 

Many people use the “stoplight system” when shopping at auctions. This system helps buyers assess their risk and compare it to the price of the vehicle. 

  • A “green light” means that the vehicle is free from any known defects. Arbitration may be possible if severe problems turn up. 
  • A “yellow light” indicates that the car has some issues. However, arbitration is not an option. 
  • A “red light” is sold as-is. Repossessions are essentially “red light” cars because you purchase them in their current condition. 

3. Know How to Bid 

It’s easy to cave and bid more than you should on a car you really want, especially if there is other interest available. But there are many factors that will influence whether or not you get the car, so only bid what you are comfortable paying. You also want to leave money in your budget to take care of any problems that turn up. 

To help with this, it’s best to bring along someone who knows about cars. They can help determine the best bid to make, preventing you from over-bidding on cars that aren’t worth it and under-bidding on those that are a great deal. 

4. Inspect the Vehicle 

Cars sold at auctions are rarely available for test drive. So, you’ll have to rely on your knowledge to assess its condition and value. There are a number of resources you can use online such as Kelley Blue Book, CarConsumers.org and Nada Values. These guides can give you the confidence you need to identify the best vehicles and make an accurate but reasonable bid. 

RepoFinder has a great selection of repossessed cars, trucks, SUVs, motorcycles and recreational vehicles. View our database for free and find repos in your area. If you want more features, consider upgrading your account to RepoFinder Pro for just $4.95 a month – cancel anytime!

odometer on used car

Used Car Shopping: How Many Miles are Too Many?

Buying a used car is often a great way to save money while getting something dependable for work or school. As you shop for used or repossessed cars, you may be wondering how many miles are too many. Generally speaking, the higher the number of miles, the lower the value of the car. 

The problem is that not all miles are created equal. For example, a car with 100,000 highway miles is probably in better shape than a car with 50,000 city miles. As you consider your options for a used vehicle, here are some considerations when it comes to miles driven. 

How Do I Know if a Car Has Too Many Miles? 

When you look at two used or repo cars, one of the first things you’ll compare is the miles. If one car has 50,000 miles and the other has 100,000 miles, it’s easy to assume the vehicle with less miles is more desirable. However, it’s not quite that simple. 

Highway miles are actually easier on a car than city miles. You’re traveling long distances at high speeds, but this is good for the alternator and battery because it let’s them charge properly. It’s also better for fuel efficiency because you’re traveling at constant speeds. 

City miles, on the other hand, involve a lot of stop-and-go traffic. This type of driving is much harder on the vehicle because of the braking and accelerating, which is bad for your engine, transmission and brakes. Stop-and-go driving also hurts your fuel efficiency. 

The Age of the Car Matters 

Another thing to consider is how old the repo vehicle is. 15,000 miles a year is considered to be the industry average, so it’s not unreasonable for a 10-year-old vehicle to have 100,000-150,000 miles on it. If the repo car that you’re interested in has far more or less miles, it’s worth asking why. 

Some cars might have less miles than they should, which looks attractive at first glance. However, if the car hasn’t been driven in a while, you may need to replace the oil, change out the oil filter and replace the transmission fluid. If the car has more miles than what is reasonable, it may need a lot of maintenance. 

How Long Do Cars Last?  

In terms of mileage, cars have an average life expectancy of 200,000 miles. Today’s vehicles are built stronger than ever, allowing many to be pushed over the 200,000 mark, regardless of whether it was reached in two years or ten. In fact, high-mileage cars are a good indication that the engine is running smoothly and has lots of life left.

Find a Used Car with the Right Mileage at RepoFinder

RepoFinder.com has a full database of repo vehicles sold by banks and credit unions across the U.S. To find a reliable used vehicle for a fraction of the price, contact us today. You can browse our database and find local repossessed cars, trucks and SUVs that work for you. 

buying cars from a private seller

Risks of Buying a Used Car from a Private Seller

Purchasing a car from a private seller can be a great way to save money on a vehicle while avoiding the dealership. If you know what you want, there’s no reason not to entertain buying a car privately. But, there are some risks to be aware of. Once you learn about these risks, you may feel more comfortable buying a used car from a more trustworthy source like a bank or credit union. 

Lack of Consumer Protection

The first thing to know is that state and federal laws that apply to dealerships do not apply to private sellers. Even though people don’t always enjoy working with dealerships, there are protections in place if you’re not happy with your purchase.

Unfortunately, you don’t get these same protections when shopping privately. You’re buying the car as-is, which means whatever problems it has will become your problems. Additionally, you won’t get any warranties, unless the manufacturer’s warranty is still valid. In this case, the warranty can be transferred to your name. 

Greater Responsibility 

When you walk into a dealership, you have multiple people talking to you and asking about your wants and needs. The knowledge that car salespeople have can be incredibly helpful to your search. Even if you came in looking for a specific car, they can recommend other vehicles that will fit your needs and budget. 

Naturally, you aren’t going to get this type of customer service when buying from a private seller. The seller may be nice enough to answer your questions, show you the manual and take you for a test drive, but they don’t have to do any of these things, either. Consider all of the time you’ll spend researching cars, scheduling meetings, arranging for transportation, etc. Time is money after all. 

More paperwork

Not only are you responsible for everything listed above, but also you and the seller must handle the paperwork. This means you’ll have to work with the seller to transfer the title, registration and any related fees, taxes and warranties. Usually, you’ll have to make a trip to the DMV to sort this out. 

Difficult Negotiations 

Again, this all depends on the seller, as some are more accommodating and will accept lower offers. However, many private sellers are not flexible on price. They’re expecting to make a certain profit, or they may be emotionally attached to the vehicle. This is why private sellers often charge more than they should. 

Banks and Lenders are a Safe Alternative to Private Sellers

If you’re unsure about working with a private seller but want to avoid the dealership, consider purchasing a repossessed vehicle through a bank, credit union or lender. Because these vehicles come straight from the source, there’s no middleman, easier negotiations and attractive financing offers. Plus, the banks aren’t emotionally attached to the vehicles – they want them sold!

To see what types of repos are available in your area, browse the inventory on RepoFinder.com. 

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. 

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. 

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! 

dollar bill

What is the Best Way to Finance a Used Car?

If you’re planning on buying a used vehicle and want to know how to finance it, you’ll be surprised by the options you have. Planning ahead is a smart decision because it allows you to get the best rates. And, by running through a few different scenarios, you can determine exactly what fees to expect when making an auto purchase. 

Below are the best options for financing a used vehicle and the benefits to expect with each one. 

Used Car Loans 

The most popular option for financing a used vehicle is a used car loan. Many car loans come from big banks like Bank of America, Wells Fargo, Capital One and Chase, but there are plenty of others out there, too. Large banks tend to have higher interest rates and fees, while smaller, brick-and-mortar branches are often more affordable. 

To ensure you get the best car loan, it helps to do some research. Know your credit score, determine what you’re willing to spend each month and review different companies. By getting prequalified, you’ll be in a better position when it comes time to bid on a vehicle.  

Credit Unions 

Credit unions can also finance your repo car purchase, just as the banks do. You will end up getting an auto loan with monthly payments, but you can expect a slightly different process. For instance, credit unions are not-for-profit and typically offer lower fees but higher interest rates. Their customer service tends to be above average as well. 

Home Equity Loans 

Used car loans aren’t the only way to pay for a car. If you have equity in your home and you can access it, you may use this money to purchase a vehicle. Home equity loans usually offer lower interest rates than standard auto loans, and you may even be able to write off a portion of the interest on your taxes. 

Personal Loans 

Another option for financing your vehicle is a personal loan. Most personal loans have no restrictions on what you can use them for, giving you the freedom to buy any vehicle you want, including a repossessed luxury vehicle. However, there are things to watch for as well. For example, some personal loans have higher interest rates and additional loan fees compared to auto loans. 

Peer-to-Peer Loans 

Peer-to-peer loan platforms allow you to borrow money from an investor. If you don’t qualify for traditional financing, or you don’t like the offers you are getting, this is an option worth checking out. The requirements are usually less strict compared to banks and credit unions, and the financing typically comes quickly. The loan amounts are usually low, but this won’t be a problem if you’re planning on buying an affordable repossession. 

As you can see, there are many options for financing your repo car purchase. Repossessions are lower in price to begin with, so when you choose the right financing option, you can expect reasonable monthly payments that won’t break the bank.

man shopping for cars online

Tips for Online Car Shopping During Coronavirus

Car dealerships remain open during the COVID-19 pandemic because they are considered essential services. If your car tanks, you’ll need a new one after all. However, the pandemic is changing the way people shop for vehicles. Rather than coming into the showroom and being in close contact with others (car salespeople, financing department), you can shop for vehicles online. 

If you’re thinking about buying a new car during the pandemic, there are some things you should know. By following the tips below, you can ensure a smooth and successful online transaction whether you’re buying a brand new vehicle or a used repossession. 

Do Your Research 

Research is key when buying a vehicle online. You don’t have someone to show you the ropes and go over the available features, so you’ll have to do this yourself. Most people don’t mind, as it allows them to browse for vehicles at their leisure. If you’re shopping for a repossessed car or truck, keep your expectations realistic. Know what you can afford and the types of vehicles available in your price range. 

Decide Where You’ll Buy From 

Most dealerships have a good selection of inventory online, but they’re not the only ones that sell cars and trucks. You can also go with an online car site that sells all types of vehicles at different price points. Or, you can shop with an online auction site that allows you to bid on the vehicles you want. In addition to cars, RepoFinder.com has pickup trucks, motorcycles, SUVs, RVs, ATVs, boats and even small aircraft. 

Consider the Test Drive 

The one downfall to shopping for cars online is that you can’t test drive them all like you could at a dealership. In fact, you might not be able to take a test drive at all! Not all online car services are accommodating with this type of stuff, so you’ll need to be flexible. Your best bet is to do your research and look for virtual tools that allow you to “drive” and explore the vehicle of your choice. 

Get Used Cars Independently Inspected

Because test drives aren’t always available when shopping online, we recommend getting an independent inspection. When shopping for repossessions, for example, you’ll usually have the chance to inspect the vehicle before signing anything. Bring along someone who knows cars, and if the vehicle is far from home, hire someone local to do a quick inspection. 

Decide How You’ll Get the Car 

Dealerships often deliver vehicles right to your doorstep for a fee. However, other services expect you to come and pick up the car. In this case, you’ll need to coordinate the details. Often times, two people will come down together in one car and then drive both vehicles back home. 

RepoFinder offers a full list of banks and credit unions that are selling repossessed cars, trucks and recreational vehicles. You can do everything online, from viewing the pictures to making a bid. Visit us today and enjoy a safe, convenient way to shop for affordable repossessions in good condition.