subject: Can Repossessed Cars Be Trusted? [print this page] When you start to look for a used car, you are going to find many different options on the market. The biggest problem with buying a used car is typically the fact that the best models are still rather pricey and the cheaper models need work to be brought up to their best possible state. The newer models of used cars are usually only for sale when there is something wrong with them or they have been in an accident. It is not easy to make sure that you are getting a good vehicle if you turn to a used car, even though this may be your only option available. The best chances you will have with getting a used car comes when you look at repossessed cars in auctions.
When someone is consistently not able to make their car payments, their car will eventually be repossessed by the bank. That car is still normally relatively new and usually in a good working condition. After the bank repossesses it however, they will need to pay to keep it stored. This is not usually feasible and as a result, they will sell the car in an auction. The price they receive for the car is usually not worth the entire loan amount, but it is better for the bank to make some money off of the car than to continue losing money by paying to store the vehicle.
This means that when you know where to look, you can find repossessed cars at very low prices. Regulations will set a maximum price for starting bids, which is usually traditionally low. All of the attendees of the auction will then continue bidding on the vehicle until a final price has been reached and one person is the new owner of a car. Typically, the prices which are paid for repossessed cars during an auction are anywhere from 50% to 90% lower than they would normally be priced at. Even if you end up purchasing a model which needs some work, you will be saving a great deal over what a new one would cost you.
The best deals are the ones you find where life has thrown someone a really bad curve. They've only had the car a few months and suddenly find that the job that they thought was secure for the next decade is no longer there and they can't make the payments any more. So the car gets repossessed. These low-mileage beauties are the ones you want to find. They haven't had time to suffer from wear and tear.
Auctions are a great way to locate repossessed cars for sale. Banks are usually the main source of repossessed cars but they may also be purchased by used car dealers and then resold on their websites. Remember that each time a car is resold the price will increase since at each stage, the seller is trying to make a profit on the transaction.
