Finding the best repo cars for sale takes a fair bit of working knowledge in the industry, or a very good introductory guide. Getting a repo car allows you to find a vehicle that is in great condition at a price far below what you would expect to pay in the regular used car market. However, there is a bit to know about in order to do this properly and without overspending. As such, in this guide we examine how you can get cheap auto in the repo market.
Explaining the Repo Market – Why People Sell Cars to the Government
What makes people ‘sell’ their cars to the government? When people default on their car loans often the only thing they can do to repay the debt is to ‘sell their car to the government’. This isn’t actually selling in the conventional sense, but possession of the car is handed over to a third party in order to fully or partially settle a debt.
Why is this such a lucrative market for buyers though? The repo and salvage cars market presents a hug opportunity to people willing to buy from such pre owned vehicle dealers. These cars aren’t subject to the same scrutiny as cars that are sold through the regular car market, but if you know what you are looking for then you have the potential to get a great deal.
What Should You Be Looking For When Searching for Cheap Auto in the Repo Car Market?
Condition – This is the first and most obvious point of reference, so you shouldn’t miss it. Start with obvious thing like damage to the paint work and panels and then inspect a bit more closely for damage to the wheels and suspension. Remember that things like heavily scratched wheels could be a sign of hidden structural damage.
History – It isn’t always possible to find out the service or crash history of repo or junk cars for sale, but if you can then you should find out as much as you can. Cars that have had engine changes or other major work done should be avoided unless they are very heavily discounted. You should also be on the lookout for a good service history, though this is merely a bonus if other features of the car are in good condition.
Price – While it is obvious that you are at an auction trying to get a discount on the purchase price of a vehicle you cannot rightly do this if you don’t know what sort of a discount you are looking for. In some cases the bidding can exceed the going rate for standard used cars that fit the same description as the one being bid on. This is simply because people get caught up in the excitement of bidding, make sure that you don’t do the same.
Why Look For Car Dealerships that Sell Used Cars? – Where to Find Repossessed Car Auctions
There are two types of repo car auctions that you can buy from: regular ones run by auction companies, and annual (or bi-annual) auctions held by large insurance companies. The latter has the best potential for a bargain but depending on when the last one was you may be waiting for a while.
Auctioneers Auctions – Smaller auctions usually occur regularly in most major cities and towns, simply check out your local classifieds (either online or in the newspaper) to find out more information about your local auctioneers. While there aren’t usually as many options at these smaller events don’t discount your potential to get a good bargain, especially if you get lucky on a day where not many other people come to the auction. Remember to do your research in more general terms because it is unlikely that you will know what you will be bidding on until the day of the auction.
Insurance Company Auctions – The larger auctions are best learned about by asking your car insurance company if they know of (or are holding) a large auction on repossessed cars in the near future. The best time to try this method of finding the best used repo cars for sale is around the end of the financial year. This is because companies are much more likely to be trying to clear out their excess assets and stock.