have you
thought about purchasing a repossessed car? ever wondered what to look for in a
repo vehicle? knowing what to look for, where to find it and what to ask can
land you a terrific deal and potentially save you thousands.
Repossessed Ford F450 at Copart
What is a repossessed car?
A automobile is
repossessed when the lender takes back possession of the car associated
with the loan. Repossession usually takes place after the recipient of the
loan falls behind or becomes delinquent on payments. depending on the car loan and
the state where the automobile is registered, lenders can initiate the repossession
process after the owner misses just one payment.
What are the benefits of purchasing a
repossessed car?
Repossessed
cars are typically very economical and sell for nearly 25-40 percent of a similar
vehicle’s value due to the reason they are on the market. because banks and
lenders are mainly trying to recoup the money they lost on the automobile or the
value of the loan, the markup on a “repo” automobile is not as high as one found at a
dealership. another reason repossessed cars come at such a discount is that
unlike a dealership or private seller, the financing institution typically
foregoes the expense of cleaning or repairing the vehicle. The automobile is sold “as
is”.
Repossessed Dodge Magnum at Copart
Many
repossessed automobiles are in still in good condition. This mostly depends on the
previous owner, but finding a repo automobile in terrific shape is much more common than one
would think. In the case of newer year model cars, you may even be able to
retain the factory warranty!
What are the cons of purchasing a repo
car?
The biggest
downside of repossessed automobiles is usually the lack of historical information
available on the vehicle. You may not know where the automobile was located prior to
the auction. You may not know whether the previous owner kept up with basic
maintenance such as oil changes and tire rotations. The good thing is that you
can minimize this issue by doing your homework and knowing what to look for!
What do I look for when inspecting a
repossessed car?
Repo automobiles are typically sold as-is, so inspecting the car before the auction is a remarkable advantage. If permitted, bring an approved inspector with you or send one as a proxy to get an extensive look at the car. If you are inspecting the automobile alone and are allowed, start the automobile and listen for any unusual noises like knocks or rattling. Thoroughly examine electrical components such as power locks and windows, instrument clusters and lights. If you can, check the levels of oil, transmission fluid and coolant. Visit Copart’s Inspection suggestions page for much more guidelines and resources.
Where can I
find repossessed vehicles?
Repossessed Dodge Cummins at Copart
Repossessed
vehicles can be found through numerous channels. In some cases, you can go to a
bank or credit report union and ask to see their repo file. This file will have the
pertinent details of the cars they want to sell. A used automobile dealership is
also a good place to find repo cars. some of the benefits of purchasing from a
dealership are that they will take the time to clean the automobile and make small
repairs. There are even some cases where a dealer will offer a warranty or
competitive financing.
One of the much more common channels to find repo automobiles is through physical and online car auctions. online car auctions such as Copart are outstanding because they can offer a much more comprehensive inventory of repossessed automobiles that is available to anybody with a membership and an Internet connection.
Ready to purchase a repo car?
Register to become a Copart member for free to begin searching, bidding and purchasing Copart’s repo inventory.
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