If someone wants buy a car, there are two most common places to go which is probably the only known locations where people can buy cars: new car dealers and used car dealers. The fact is, there are several, not so popular alternatives to these two places. And one of those is buying repo car.
What are repo cars?
Repo cars are privately owned vehicles that have been seized either by the bank, financial institutions or the government. Reasons vary why these cars have been repossessed. It may be because the owner fails to pay for the car mortgage or the car has been used as a lien for another loan, probably a house mortgage. Either way, these cars will become a bank’s, financial institution, or government’s property.
These cars are not so much of a use to their new owners so they will be sold to the highest bidder, through auction.
Why are repo cars so cheap?
Repo cars occupy so much real property which equates to money lost. So, instead of storing these useless vehicles, it would be much economical to sell it off converting them into liquid assets at the same time saving the real property. Depending on the seller, the car can cost as little as $100.
The question now is: Is it okay to buy repo car?
This is not a simple question with an instant “yes” or “no” response, since there are several factors to take into consideration, plus the fact that different people have different standards and priorities when it comes to buying a car. However, there are some things you should know about repo cars which should help you decide whether or not to buy one.
Little do people know that when it comes to quality pre-owned cars, a good place to find them is at repo car auction. Quality is not the only thing that makes repo cars so easy to love, you can certainly own a car at a very affordable price. You can even buy a car with as much as 90% savings. Some repo cars can be a little over (or under) a year old. Some may be as good as brand new. Others can be a good old car waiting for its new owner for a great deal.
Finding repo car sellers/auctions is easy. Most bank websites publish a list of repo cars on sale. Government repo cars on the other hand are announced publicly through listings and announcements. There are also specific websites that offer great collection repo cars that are up for bid. Usually, repo car websites require you to pay a membership fee to gain access to their database and some useful information about the vehicle for sale. Membership fee has other advantages. It eliminates “joybidders” and reduces the risk of fraud (however asking for a membership fee is not an assurance of the legitimacy of a repo car website).
Once you find a repo car seller, understand the terms and condition of purchasing be it through auction or non-auction purchase.
In the end, the decision whether or not buy a repo car is up to you but come to think of it, there is nothing wrong with buying repo cars. They are legal, same as other pre-owned cars, and most of all cheap.