Repo cars are cars that have been repossessed by lenders, banks or leasing companies because the original owner could no longer make the payments. Buying repossessed cars for sale at auction can be a way to get an amazing deal on a barely-used vehicle.
However, sometimes you might end up with something that isn’t even drivable. What you have to keep in mind when buying a repo car is that it’s buyer beware. You could walk away with savings of up to 40% if you buy at repo auction as opposed to heading to the lot, or you could come away with someone else’s problem.
Why are Repo Cars So Cheap at Auction?
Again, the issue is that it’s “buyer beware”. When you buy a repo car off a lot, you can always check it out if you know your way around cars. If you’re not all that handy, you can always bring a friend with you who is, or even pay a mechanic to come along with you and check out the vehicle.
This is a huge thing when it comes to buying a repo car because you can usually assume that if someone hasn’t been able to make the payments on a vehicle, they also haven’t likely been able to afford to make sure that maintenance and repairs have been done in a timely fashion.
That’s the downside. The upside is that repo cars are cheap, and that’s because the lender just wants to recover as much as possible, not make a profit. They don’t see it as selling a car, just disposing of an asset that’s going to continue to depreciate over time.
Finding a Repo Car
You can find repo cars at police auctions, or other types of public auctions. Using proxy bidding websites, you are also able to bid on repo cars that are listed on dealer auctions. There are also websites that preferring to sell only repo cars (also in Baton Rouge) with good price, and they may even offer limited 30-day warranties, or extended warranties on various components for an additional fee.
Auctions are generally the best way to find a repo car or repo motorcycles. You can often realize savings in the thousands of dollars over other buying methods.
Auctions are generally the best way to find a repo car or other repo vehicle for sale. You can often realize savings in the thousands of dollars over other buying methods.
Tips for Buying a Repo Car
You are generally well advised to consider vehicles that are under 18 months old. This is simply because the older the car is, the more problems you’re likely to encounter. This is pretty much the case with all auction cars, not just repos.
You should consider buying at a dealer-only auction. That’s because the best repo cars are usually found at auctions that are open only to dealers. The “leavings” are usually left for auctions that are open to the general public. Don’t worry if you’re not a dealer, as there is way of accessing certain dealer-only auctions. Proxy bidders are companies that will bid for you, using their dealer license to get you the car you want.
In many cases, your proxy bidder can even have your car delivered to you for a small fee.