Category: repossessed cars

5 Repo Auto Auction Facts

If you are planning to buy repo cars for yourself or to engage in a buy and sell business, then I suggest you to buy them at repo car auctions. These are good places for you to buy vehicles at a much cheaper price compared to cheap cars sold by dealers (avoiding mark up prices).

Foreclosed cars are mainly bank repo cars, from banks and other lenders that will be sent by them to various auctions and dealers to immediately incur profit and cover the outstanding balances from the loans that were unpaid by the previous owners of the repo cars.

The best way for you to end up with a great deal on these repo cars for sale is by keeping yourself informed with the current market prices of these vehicles and current and future auctions that will be held near your area. On the other hand, if you have no problem in buying a car through the web, then there are sites where online auctions for repossessed cars are held, although, you should always check the credibility of the site where you will be bidding.

With all that basic information laid out here, there are 5 important tips and facts that you should always remember in participating in auctions;

1-Most auctions allow inspections before the actual bidding starts. It is important for you to check and inspect your prospect car or cars if you are planning to buy several to sell them later with a much higher price. This will allow you to decide if the money you are going to pay for the car/s is worth it.

2-Always keep your composure. Be patient. There are a lot of cars in different auctions. If you are in an auction with a lot of competitors, you should expect a tight battle. While, if you are in a quite auction with less competitors, then it might be a good chance for you to get that repo car easily.

3-Auctions require registration before one can actually participate. So it is very important for you, to register and follow the auction rules of payment, actions, and etc. To avoid future hindrances and delays.

4-Most repossessed vehicles are in good condition, although there will always be some damaged cars with minor or major damage.

5-Always leave yourselves with other options, if you don’t succeed with one auction, then you can always try again on other auctions or maybe resort to plan B.

About RV Repos and RV Repossession

1.       Most repo RVs that are for sale are only a few years old.bank repo RVs are most of the time repossessed in the two to three year loan period and were bought new. We all know that new RVs are much more expensive than the old ones. The value depreciates a third as soon as you buy them and 20% more in two years. Because of this, selling it will be difficult and it won’t be enough to pay the outstanding loan amount, then it will be repossessed, just like all other repossessed vehicles.

Typically, RV repos are used a few times only. The use of it is seasoned. Some even use it for a total of one or two months worth of time in a year. Those who are facing repossession even use it less because of financial issues. This only means that they still look new because they were hardly used.

3.       Motor homes are considered great investments that is why owners take really good care of them.Some of them would rather not use it if they think it will damage it in the process.

4.       Repo RVs are always upgraded and have several features. Most of the time it is the more expensive repo RV that gets repossessed fast because the monthly payment of this high end luxury car could be really high with all the best amenities it has. The cheaper RVs are less likely to be repossessed due to non- payment compared to the more expensive RVs.

5.      Repossessed cars for sale as well as rv repos are sold cheaper than the market value at auction. Banks want to sell the RVs they repossess as quickly as possible to cover the remaining loan balance and other expenses. The banks will likely take the highest bid at auction because it would mean expenses on their part if they keep the RV. So if the starting bid doesn’t get higher, the RV will be sold at a bargain price.

6.       RV dealers sell repos with their other inventory. Dealers buy repos at auctions so they can be added to their inventory. They will earn a good profit because the RVs in auctions are sold at a low price.

7.       Visit an auction and buy your own repo RV. Some auctions give low prices only to dealers, though there are still some that are open to public. You can still bid on an RV at an auction which is in good condition and at low price too.