With thousands of repossessed vehicles landing up on auction floors, buying one at an auction is certainly a means of getting a car at a bargain price. But it is not without its risks.
While you can inspect the car before an auction and check out all its paperwork, you can’t drive it or send it off for a professional check.
Plus, Consumer Protection Act (CPA) regulations allow for it to be sold with “no duty to repair”, so if the car is out of warranty, or you discover it has a problem that’s not covered by the warranty, the bargain buy could end up costing you plenty.
And be aware that while an auction may be advertised, in big letters, as a “bank repo” auction, there’s a chance that the car you’re interested in wasn’t repossessed or part of a liquidated estate - it could have come from a dealer.
It may sound counterintuitive, but customers fresh from bankruptcy or whose cars are being repossessed can be highly desirable customers for lenders and dealers, say two companies that cater to what's politely known as the BK market, short for bankrupt.
That's because close to 40 percent of the customers who can be identified from publicly available U.S. Bankruptcy Court records buy a car within 30 days after their cases are discharged, according to OnlineBKmanager.com of Chandler, Ariz.
"Our focus is to work directly with franchised new-car dealers," said Robert Davies, company president, in a phone interview earlier this year.
The company mines court records to identify people who are approaching the point where they can buy a car again. Dealers and lenders can buy those leads and the company sends direct-mail pieces to the customers. OnlineBKmanager.com has about 800 dealers signed up and a growing number of lenders, Davies said.
For instance, the company announced in February that it had signed up with Prestige Financial Services, a subprime auto lender owned by Utah-based Larry H. Miller Group of Companies.
Repossesed Cars for Sale-Find Here Where You Can Find Them
Presented to you by Car Auctions in California If you are looking for a repossessed cars for sale you are looking in the right direction. Repo ...
Does anybody know how to find repo car auctions?
May 13, 2009 by Colby C | Posted in Buying & Selling
i live in ma and im looking for the government repossesed car auctions. cars taken by govt, police, etc and ive heard you can get some nice cars for good prices. when i search that on google i get all these sites that want me to pay to register. does anybody know how to find some of these auctions in massachusetts?
they said that they dont do auctions and when i called the towing service, they said that the cars usually go through the regular auction..
i called the police station and they said that they dont do auctions. they also said they didnt know if the impound lots did. so i called my towns towing service and they told me that any cars that they had or any cars that were reposessed would be sold at a normal car auction. i already knew about those ones and i was looking for the repo ones because i am looking for a specific car. so i dont know if my state even has repo auctions..
and to charlie, is that site real? i saw it and they wanted me to pay to register with them and i am very skepticle about paying sites like that before they give me what im looking for..
call your local police.... not 911 obviously but the direct line to the police and ask for the number for their impound/towing yard..
the auctions are held at the yard usually twice a week
EDIT: who said they dont do auctions ? and what is the regular auction? the auctions here in CA are held at the impound lots that the police use... its not the police its an idependent impound yard
Im.about.a.dollar!!fuck.50.cent | May 13, 2009
http://urlvi.be/c3f38
- here's a good website to look for real good, affordable and quality vehicles from official government auctions!
I bought my Honda Accord for just $2250 with a milage of 5,270!
And it's been already a year I'm riding my car and it's still doing well! I've recommended it to my friends and all of them are enjoying their used cars and have no problem with it!
Charlee | May 14, 2009
Repossesed cars and police auctions.?
Mar 27, 2008 by kenny_woerner11 | Posted in Buying & Selling
I was wondering what are the typical selling points for small trucks and sedans (2d,4d,convertable) at police auctions? Also, on an average, how many people attend and how many cars to they have for auction in one sitting?
Oh also for the specific cars, I'm thinking late 90's to early 2000's and for sedans preferably a BMW 3 or 5 series and for trucks a smaller Toyota like the Tundra.
make sure you take a mechanic with you.
Last time i went i have seen 4 BMW's and many pick up trucks (ford ranger, and mostly domestics) In the auction they had plenty of cars (like 50 or even more,in CA by the way). There were many people more than a hundred, and it was a hot day...
good luck finding your car
Carfan89 | Mar 27, 2008
depends on what place can be any wheres from 10 cars to 500.
the auction are packed & you have to know your stuff plus don't forget buying fees.
Sled Head | Mar 27, 2008
It's possible to get some good bargains at these auctions but remember that there are other people there bidding against you and, if you are not careful, you can over-bid and pay more than you should. Here's an article that has more details:
it's an auction. there are no typical selling points. it all depends who is in attendance. you can have 20 people or 500 people.
Dtownfb | Mar 27, 2008
cars and trucks sold at these auctions solld as is where was no warrtantee of any kind most times you can not start no keys and most will have title issued by state with ? on title some will have interal damage and most have sat for long time so be very carefull as if you can not drive and start hard to know if any thing wrong most times cash only no checks
busnuttwo | Mar 27, 2008
There can be some nice buys at public auctions, but you also need to be careful. I'd suggest the following article on the pros and cons of auctions, how to avoid the cars in bad condition, locating them, and so forth, before going this route:
Mar 21, 2008 by futuremissionarydoctor | Posted in Buying & Selling
So, I'm going to a repossesed car auction and i need these questions answered....
Should I recieve a title on the car once I buy it?
What should I be on the lookout for, when bidding?
Is a mitsubishi expo lrv or a mercury mystique better?
What all do I need to do when I get the car?
Please leave your email address, if you know ALOT about cars.
Thanks!
Auctions can be good, but can also be very bad. I've heard a lot of horror stories and seen a lot of money be spent to repair auction purchased cars. Don't be discouraged though. Do your homework on any car you may want to buy. It would be a good idea to have someone on the phone while at a computer to check prices, options, etc. for cars you are looking at. You should get a title and as the other guy said, see if you can check the title before you buy. If it's clean there should be no reason you can't see it. Or at the very least, look it over good before you pull away. I wouldn't buy either of those cars either. If I had to choose, it would be the Mercury. You will need a valid driver's license, maybe a 2nd form of id (state id), maybe insurance, and possibly your social security card. Check with the auction place before you go.
gtp1225 | Mar 21, 2008
i wuoldn't go for either of those cars, try to find a honda or volvo, they last forever. if u live in a state where cars get inspected you need to make sure it will pass an inspection B4 you bid. you should recieve a title after you pay, you should ask to see the title b4 hand to make sure they have one for your car. look for the least amount of rust. if u live in the north then the cars might have salt damage so look underneath to make sure the bottom is not rusted through. repo cars can be a great deal if you know what to look for. don't get a car with a bunch of rebuilt engine or transmission parts. look under the hood and make sure there is not alot of decay. if u have anything else email me at lasko987@yahoo.com
Nick S | Mar 21, 2008
Here's an article with a lot of tips and advice about repo auctions:
bought a car on finance which was repossesed but they are trying to put a charge on a house where i dont live?
Aug 09, 2006 by ghulam h | Posted in Other - Cars & Transportation
the car was repossesed as i didnt pay the finance they sold the car at auction and want the remainning balance but the house they are trying to put a charge on is a house that i bought with my brother in 1992 and have not lived there since that time i helped my brother to get a mortgage, can they put a charge on that house even though the finance was taken out at another address
don't know
yogachic♪♫♪♫♪♫♪♪♫♪♪♫♪♫♪♫♪♪♫♪♫♪♫♪ | Aug 09, 2006
What do you pay after your car is repossesed?
Sep 16, 2008 by Bryan G | Posted in Buying & Selling
I have a car that they want to reposses and I can assume the payments of another vehicle but what do you have to pay when they reposses your car? I was told you still have to pay the full amount after repossesion. Someone else told me they sell your vehicle at an auction and you pay the difference? What really happens?
First.. take the amount of the loan that you still owe to the bank.
Second.. add the fees that the bank paid to repo your car like towing and storage.
Third..subtract the amount that the bank sold your car at auction for.
10,000 amount of loan still owed
+200 amount of repo fees
-5,000 amount your car sold at auction
5,200 total that you will still owe
The bank will send you the actual numbers and their demand for payment. After that, they will sue and garnish your wages.
Depending on the state laws, they have 7 years to collect that money.
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