So you’ve taken the decision to buy a car but not sure where to look first? Have you considered a repossessed car? You could potentially save yourself hundreds of pounds! The best place to buy repo cars are at car auctions; they are held all over the country.
What are repossessed cars?
Repo cars are vehicles which were used as collateral or more often cars that were purchased on finance. If the person who took out the loan couldn’t repay it, then the company has a legal right to have the money compensated. The vehicle is then repossessed by the company and the loan amount is recovered when the vehicle is sold. In most cases it will be banks and loan companies that repossess a car but in some cases the police can repossess a car if the owner was driving without a licence or insurance.
Repo Car Auctions and Sale
One of the reasons that attract people to buying these cars is because you can get up to 95% off the retail price. If there is a particular high performance car you've been wanting for ages, then you may be able to save a lot of money if you look at repo car auctions because you will get them really cheap there. By law, bailiffs can also repossess a car and sell it on to recover money which is owed from the company that hired them. In some cases repo cars have many faults, so the disadvantage of buying them in an auction is you purchase the car as it’s seen. So if you discover any problems afterwards, you cannot get your money back unfortunately.
If you really want to buy a repossessed car, then do some research first. Make sure you understand how an auction works and the rules which govern it.
- Check the vehicle thoroughly looking for signs of neglect and concerns such as the tyres, dents, the interior, clutch and brakes.
- If possible at all, bring a mechanic with you or an experienced person even if you have to pay. Tthis could save you a lot of money if you were to buy a dodgy car.
- Research the make and model carefully as some cars tend to have a bad history. For example, some makes have a bad reputation for having faulty engines.
- Always find out the reason as to why the car was repossessed - this can be a very important decisive factor.
The repossession of car is a legal thing but some people may find it upsetting to buy something which was not really up for sale by the owner but forced into an auction because for whatever reason, financial commitments were not being honoured.
23 Nov 2009 11:44 | Views (2806)