Are you in the market for purchasing your next vehicle? Have you considered a used one? Car repo auctions are a becoming a very popular yet trustworthy avenue for buyers to connect with used car sellers. These auto auctions are on a reliable time table throughout the year through your local banks, police departments and government agencies.
So, how do car repo auctions work? It may come as no surprise to know that many people bite off way more than they can chew in debt these days. Auto loans are one of those areas where people might have eyes bigger than their paychecks and can’t maintain regular payments. Or some people simply hit hard times through job loss, mounting medical bills or other unforeseen fiscal fiasco. All it takes is 1-2 missed car payments, and your lender can start the repossession process. Once this process is complete, the automobile is transferred back to the ownership of whomever sold or leased the car to the former owner. To help make-up the financial loss they suffered through the repossession, the vehicles will be offered up for sale through repo car auctions open to the public at large. This would be your chance to check out what’s for sale and place bids on the auto of your choice.
Where do you find out about the repo car auctions? While no one likes to think about the poor guy or gal who had to suffer through the repossession, it does open up a potential for buyers to get a really good deal on the final auto price. You can search your local area repo auctions online or through your local newspapers. Depending on your area, you might try contacting your closest police department or transportation department to inquire as to if and when they hold public auctions. Due to the limited amount of space available to some of these entities, they might have to auction the vehicles off every month or every few months just to clear them out.
You can also try talking to your local banks and credit unions to determine if they auction off their own repossessed cares. If they do, they will be more than happy to give you the information on the auction dates and locations. Again, check your local newspapers or “money-saver” type ads for repo auto auctions. Banks and police stations typically advertise at least two weeks before the auction as a matter of ethical practice.
Of course, there is the powerhouse online auction site of eBay motors. Now, they don’t strictly deal in repossessed autos, but will have some in their line-ups for people to place bids. It’s worth your time to do a little research on the car or truck you are looking to bid, on, as you want to ensure you are getting the best value before the first bid is placed.
You might be wondering how the car repo auctions can offer these vehicles at such a low price. Consider first that they did not pay for the vehicles — they have been seized, confiscated, repossessed. And as I mentioned earlier, they are sitting in their warehouses, which are likely limited on space. So, these police departments and other government agencies need to unload these cars, and since they don’t owe anything on them, it’s pure profit to them. That’s why they can accept a lower price for the cars and trucks they are auctioning off, which makes it a great opportunity for a buyer to save.
So, don’t expect these cars and trucks to be given away, but you’ll likely find some really good deals if you take the time to research the auto repo auctions in your area.