Automobile Sales Blog

Here is a vintage car from India.

This picture was shot when it was on display at a vintage car show in Agra.

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.

Buying Repo’d Cars

Here is advice:

# If I were you I would check out your county for repossessions to be sold they generally sale for 2/3 of the loan value.

# I would NOT buy a car that has been repoed. Simple logic tells me that the driver was NOT doing ANY repairs or even oil changes, before it got pulled away. In my years of experience doing vehicle repos, (yes I do know what I am talking about here) the number of outright clunkers was higher than 75 percent. Junk on wheels is what we used to call them. Run to death and barely able to be driven. Buyer beware is what I say.

# What if my truck worth 15k is repoed because I quit paying on the 20k loan. Then I buy it at auction because I know I took care of it? Heck, I could even dirty it up inside a little first so it will auction for less.

# It won’t work. If it was repo’d by a buy-here-pay-here lot, they’ll put it back on the lot and certainly aren’t going to deal with you. If it was taken by a bank or manufacturer’s finance company, it is going to a wholesale auction where you need a dealer’s license to bid. Some smaller credit unions or finance companies will sell their repo’s in their parking lot, but that’s just like the BHPH place - they aren’t going to talk to you. Besides, you STILL OWE the difference between the loan (plus repo fees) and what it brings. It’s cheaper to make your payments.