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Another option for buying repo cars
Repossessed car auctions ar not the only way to buy bank repo cars for sale. There is a more direct, easier way to do this, but you have to be prepared. Speed is the name of the game when dealing with repossessed cars for sale. ...
My Own First Experience With Repo Car Sales
Even though I said in my last post I was going to start talking a bit about government police auctions, I've decided it would be better if I first told you a bit about my first experience buying repo used cars. I believe it will definitely be useful for those of you who are planning to start with this, either to save some bucks when buying a used car or even for profit.
You see, the first time I realized there was something like a repossessed car auction, I just couldn't believe it. I got the word from a friend of mine who had also been a car dealer for more than twenty years. He said he would let me go with him to his next repossessed car auction at a local lot, and I agreed immediately. I thought I had discovered gold and couldn't believe my own luck.
Once we arrived at the auction, he told me his plan: he was going to let me choose my first repossessed car right there and see how much I could save. Of course, I wouldn't be buying it right away; it was just for fun. After all I'd been told by him about how easy it was to save thousands on these repo car auctions, I thought I could at least chose some used car on sale for 60% its market value, and I would call that a day... I was wrong.
First thing I did, I went around the parking lot and took a look at the different repo used cars there. Also, I tried to figure out who the more experienced car dealers were. I saw a couple of guys who seemed to be very active, asking lots of questions and trying to look under the hood of a few cars. I concluded they knew what they were doing and I decided to keep an eye on them. Also, I chose a great SUV that looked fine to me and had been thoroughly inspected by these guys before they moved to something else. Thought it would be the deal of the century.
I called my friend and told him that was it. I'd already chosen my used car and said that, if I had the money right there and then, I was sure I could make a great car deal on it. I also told him about the 2 guys I had been following all day long. My friend stared me in disbelief for a moment... and then laughed out loud. Then he explained: The real dealers (him included) had already been a couple of days before and personally inspected the vehicle. They then run an Autocheck on the car's VIN to see its history report, as it was curiously absent. Turns out that particular SUV had been re-conditioned after a flood it had been involved in in a different state. I visual inspection also revealed that if you were savvy enough, although I was told the job performed on this particular vehicle had been really good and hard to notice. In a word, I was about to buy a repossessed car whose street value was already 30%-40% of its usual price at most, and it would surely bring me problems down the line.
Conclusion: Don't think repossessed auto auctions are there just to make you money. repossessed cheap cars represent a great opportunity indeed, but you have to be careful and do your job.
See you on my next post.
Buying Repossessed autos for Sale (Last Part)
I'm about to share with a few final tips for safely buying repossessed used cars at public auctions. Let's go straight to it.
Tip number four:
Check out the rules and codes of the particular used car auction you're about to attend. They are generally pretty similar to each other but they do differ on some important points sometimes.
Tip number five:
Do buy a guarantee if you feel you need one. Particularly if you're new at repossessed used car auctions, you'd better be safe than sorry. For a small extra amount, you can buy a guarantee for a few months so that you can check the car on your own (even though you really ought to do it beforehand; check my next post)
Tip number six:
Always go with a mechanic or someone in the know. You'll have your chance to check the repossessed used car on sale thoroughly before buying. Most repo used car sales give you a particular day for that ( usually a couple of days prior to the actual auction). Make the most of it.
Tip number seven:
Never, ever go into a bid war out of ego. Even if you win, you'll lose. This is one of the reasons why I told you it was a good idea to always keep an eye on more than one used car auction at the same time. If there are too many savvy dealers at one particular auction some day, wait for the next auction to buy your repossessed car.
Next time, we'll start talking about government used car auctions and police auctions. Till, then.
Buying Repossessed Cars for Sale (Part Two)
As we've seen in our last post, there are currently many options when buying repossessed cars on sale. From traditional repossessed auto auctions in local lots to online repo car auctions, all the way to police and government car auctions. Right now, I'm going to give you a few tips and best practices so that you can bid and buy used cars with safety at traditional repossessed car auctions.
Tip number 1:
Look for and attend as many government car auctions and repo car auctions as possible beforehand.
( Btw, a government car sale is an auction in which the repossessed cars were originally bought thanks to some kind of government loan; that is to say, if government money was involved in the original purchase, the government repo car can be re-sold at a government car auction. )
Why? Simply because it will let you better know the environment you'll be working at and know what to expect. (See next tip)
Tip number two:
Try to find out how much your desired repossessed car usually sells for. After a while, you'll see car dealers ( the main attendants to government and repo auto auctions ) tend to settle at a certain price for each model. Once you know that number, consider you'll have extra expenses associated with the purchase of any used car (papers, for example). Put all that together and that's your magic number. If it still makes sense for you to purchase a repossessed car for that money, go for it. If not, try to find other repossessed cars auctions with less attendants. If it's still too much for you, go for a cheaper used car model or bid on one in worse conditions and take some time and money to repair it.
Tip number three:
Always check the used car's VIN (vehicle identification number) and analyze the repossessed car's history. You never know what you will find. In most repossessed auto auctions, this kind of information will be provided for free. If for some reason it is not, again, do ask for it. This information will let you determine the real condition of the used car for sale you're about to bid on.
Well, there are a couple of tips more I want to share with you, but I'll leave them to my next post. See you then.
Buying Repossessed Cars for Sale (Part One)
In my last post I told you a bit about what repossessed car auctions are and why buying repossessed autos for sale can be so profitable. Al of this is true, no question about that. However, there are a few precautions you have to take when bidding at repo or government auto auctions, particularly if you're new at it. None of this is extremely difficult ( in fact, most of these tips are plain common sense ), but they certainly should be taken into account if you want to purchase repossessed vehicles in a safe manner.
First of all, let's try and answer one simple question: Where can I find these
repo car auctions you keep talking about? Well, the most obvious place can be the local newspaper. It's not hard to find a few public auctions taking place at car lots in your area from time to time. The downside, of course, is that your options will be pretty limited, since chances are there won't be that many auctions taking place near your home at any given time. Another way that's become available lately, are online repossessed auto auctions. These kind of auctions deserve a lit bit more explaining, since there are many pros and cons to them. Let's see.
1- Online used car auctions let you access hundreds of deals with the click of a button. Places like ebay motors, for example, list hundreds of used and repossessed cars from all over the US at any given time.
2- They're more "newbie friendly", particularly if you know your way around the internet. You attend a marketplace you're most probably accustomed to already, so the learning curve is not that steep. Also, the number of professional car dealers attending these repossessed car auctions is much less than what you can find at traditional repo auto auctions.
3- These auctions usually have forums where you can interact with other buyers of repossessed cars on sale. You can chat about past experiences, exchange tips on buying repo cars, etc.
4- It's very easy to find the bidding history on the repossessed vehicle (model) that you're interested in. This is very important, as you should know beforehand how far you can go without losing your shirt in a bid war.
5- Some (but not all, beware) of these online auction marketplaces are renowned, trusted sites. You won't have any surprises there from the people running the auction. It's the other attendees you should keep an eye on. However, you can usually check the every seller's history easily at these car auctions.
The cons:
1- You can't check the car in person until the deal is over. It's always good to bring a mechanic with you and have him take a look at the repossessed car's condition, just in case. Traditional repossessed car auctions give you a day before the actual auction to do this.
2- Even though you can check the seller's history at the marketplace, you never really know who you're dealing with. Some seller's even go as far as buying or manipulating their online selling background.
My personal choice: when buying a repossessed auto on sale for a few thousand dollars, you want to know precisely who you're dealing with and what kind of a car you're buying.
On my next post, we'll get into offline auto auctions and government auto auctions.
See you next time.
Into the World of Repossessed Car Auctions
Not many people have ever heard about repossessed car auctions outside the used car market, and there's a reason for it: repo car auctions have been kept a closely guarded secret by car dealers for quite some time. Why? Simple. Buying a repossessed car for sale at one of these public auctions can save anyone -and I mean anyone- up to 90% of the vehicle's price. ( Yes, you read that right: you can buy a used car for a measly 10% of its market value ). But let's take it from the beginning, shall we? What is a repossessed car auction and what are repossessed cars for sale?
Well, as you may know, whenever a person cannot afford to make his monthly payments on his car loan, the bank will try and re-gain possession of the vehicle. This may take some time and it is often a long process, but it happens frequently, particularly in these times of economic crisis. All this you may know about, but where do repossessed car auctions come into play? You see, these bank repossessed automobiles are then re-sold at public (or private) repo car auctions and government car auctions in order for car dealers and lien holders to recuperate their loan investment. Now, since banks and dealers are trying to make up for their losses, these used cars on sale often go for much less than their street value, particularly in an economic crisis like the one we're enduring in the US right now.
All this looks great but, won't these repossessed autos be in bad conditions? In a word: no. In fact, the opposite tends to be true. Since most of these repossessed autos being sold at online and offline repo car auctions are often not used for a very long time before being repossessed, their condition is usually pretty good. Therefore, you can find great cars, SUVs', 4x4's and even repossessed trucks and boats in great conditions for a fraction of their price. As I told you before, car dealers have profited for ages by buying these repossessed autos and re-selling them with huge margins of profit.
Now that you know what repossessed auto auctions are and how to benefit from repossessed cars, on my next post we'll get into the meat of it: how to buy repo cars at internet car sales.
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