Many people only buy repossessed cars and feel it is the best way to purchase a vehicle. Obviously buying a repo or auction car is more affordable than traveling down to your local dealership and haggling over the price of a new or used vehicle. In addition, most of these vehicles are actually in good driving condition because they were taken by the bank when drivers failed to make timely payments.
What You Need to Know
First, repo cars are typically vehicles that were confiscated after the owners failed to make payments, and while most of these are in fine condition, not all of them will be. Second, just because it doesn't make sense for the bank to store the car in a warehouse for years on end doesn't mean they don't want to get some value from the car. The bank's main interest is getting the value out of the car they paid for it. While they are willing to take somewhat of a loss, they are not going to drop the price too much.
Furthermore, most of these vehicles will come "as is," which means it is up to you to fully inspect each one prior to buying it. The bank does not take these cars to a certified mechanic and have them shined prior to a sale. There are no refunds or returns on repossessed cars. If you buy it, you own it. The bank isn't out to deceive you or sell you a car that doesn't work, but there may be problems that neither party is aware of, so buyer beware.
At Auction
When you go to a bank auction to buy a car, you need to be aware of what you are buying. Do the required research ahead of time and know not only the blue book value of the vehicle, but how much you are willing to spend. Most banks and auction sites will have a list of cars for sale so you to know what to expect. Pick out several vehicles you are interested in and go through each one to make sure it is the right car for you. Don't get caught up in the bidding. If the auction goes higher than you are willing to pay, move on to your next choice. Finally, make sure you bring payment for the car. Some banks and auctions have finance options available to you, so call in advance to prepare, but you should be prepared to pay cash.
