Car repo auctions are a cheap and excellent way to purchase your next vehicle. Repo auctions are held at regular intervals around the country, by various different organizations, such as the police, banks and government.
How do Auctions Work?
When people are unfortunate enough to not make payments on a car they have bought, the company then repossesses that vehicle and it falls back into the ownership of the leasing or sale company. They then need to recoup any monies or losses on the vehicle and will sell such vehicles at public auctions. Buyers then get a chance to bid on the vehicles in the same way they would at a furniture or antiques auction.
Where to Locate an Auction
Car repossession is not a pleasant prospect, but the flip side is that other people benefit from the purchase of a cheap and reliable vehicle. Locating your local auction house, or the auction nearest to you can be done via an online search. You can also call your local transportation or police department to find out if they offer public auctions. Some do this on a monthly or bi-monthly basis, depending on how much business they have to offer. Also, you can contact your local bank or financial institution, like a credit union and ask if they auction any of their repossessed cars. If they do, they will tell you when and where. If they don't, they will probably have some knowledge of other people who do.
eBay motors will also have online auctions in which it will state that the car or vehicle has been repossessed and is up for viewing prior to bidding. It is always worth checking a vehicle out before you bid or purchase. Sometimes, the old phrase that buying a second hand car is buying someone else's trouble can really come true, so run a check on the engine, interior and bodywork prior to buying.
Related Questions and AnswersHow Do Confiscated Car Auctions Offer Lower Prices?
Confiscated car auctions are held by the police department or other government law enforcement agencies. The reason these auctions can offer lower prices is because there is rarely a reserve or bid minimum. The police department simply wants to get rid of these vehicles. While the money they raise helps fund their department, it is not a crucial revenue stream. The department did not pay for the vehicles they are selling so the profit margin is pretty much 100%, which makes accepting a lower price much easier. In the majority of cases, they just want to get rid of the car to make room in their impound lots.Where Can You Find Bank Car Auctions?
Bank car auctions can be found in a few different places. The best place to look is the local newspaper. A bank or police auction must be advertised in the paper at least two weeks prior to the auction. Calling the bank and simply asking when the next car auction is going to be held is a very easy way of getting the information as well. Banks hold auctions to sell cars that have been repossessed for non-payment of the car loan. While you can get some good deals, the bank is not going to give the cars away.