Being able to buy bank repo cars for cheap is becoming increasingly more common in line with the increasing number of people that are defaulting on their auto financing that is tied to the rough economy. People lose their jobs and are left with a car loan they cannot afford to repay. Banks must then repossess these vehicles and try to re-loan them or sell them to cover the costs of the loan default. You can use this situation, however, to get some dirt cheap auto for yourself. Car repossession loans can even allow you to get these cheap cars without having to pay the entire cost up front. This offer makes sense from the perspective of the lessor as it is simply replacing one finance customer with another (despite the reduced costs) and this allows them to better guarantee that they will recoup any losses. This article will guide you through finding, buying, financing and insuring a cheap repossessed vehicle.
How to Get a Cheap Car – Where to Buy Repossessed Vehicles – Buy a Cheap Car online?
One of the first things you can do is to try to buy a cheap car online through various repossessed selling websites. Often these sites act as a middle man for the finance companies and do the selling off of their cheap vehicles for them. Another way that you can buy a cheap car online is through auctions sites like eBay or through classifieds like Craigslist. If you do not want to buy online then your best option is actually to buy through a repossessed vehicle auction. Auctions can let you get your hands on a vehicle for way under it’s realistic market value if you have a good mixture of luck and preparation. Read the following tips to buying at auctions to know exactly how you should be preparing.
A Guide to Buying an Auctioned Vehicle – What You Need to Know to Get a Bargain
As mentioned earlier the best way to get a bargain at an auction is to have a mixture of luck and preparation. Well, you cannot influence luck but you can do a lot to prepare yourself and this can maximize your chances of finding, recognizing and getting a good price on a good car. The following are the top three ways that you can prepare yourself before an auction:
– Prepare a list of five to ten vehicles that you would be happy to buy along with information on their market prices through other channels. Visiting some used car lots and checking online prices is a good way to find this information. You should also include a figure for how much you would ideally spend on each vehicle. You should stick to this figure when it comes to auction house unless the vehicle has bonus features that improve it’s value. Remember that fierce bidding might increase the price of a car but it doesn’t increase the value of that car.
– The next thing you can do to prepare is to research all of the features and specifications of each vehicle that is actually going up for auction. You need to know precisely if each vehicle is suited to your needs because you cannot change your mind once you have the final bid.
– The final preparation tip is to take a pen and paper and to go and very closely look at each vehicle that you plan to bid on. Write down the auction number, the type of vehicle, re-write your max bid from earlier, list the features and note any potential issues the car might have. The purpose of this is to give yourself a reference for when bidding starts so that you know at all times exactly what you are bidding on.
Doing all of these things will also give you the added benefit of being much calmer when bidding starts. Being almost robotic with your bidding and closely following your guide is essential to getting a good deal.
Repo on Credit – Financing Options for Buying a Repossessed Vehicle
It is just as easy to obtain financing on repossessed vehicles as it is to obtain financing on new vehicles. In some cases it is even easier then getting finance for used vehicles since the car is coming from a listed seller and not privately. Your options for funding your purchase are credit, small loans and leases. You should carefully consider which option best suits you and how long you plan on using the vehicle for.
Is Cheap Auto Insurance Available on Repossessed and Auction Purchased Vehicles?
Cheap auto insurance is absolutely possible on repossessed and auctioned cars. In fact getting cheap auto insurance is made easier by financiers sometimes having ties to auto insurance companies that you can use. As you can see, buying bank repo cars for cheap in the current climate has a lot of potential to safely save you money.