Repo cars at bank auctions are a great place to look for a fantastic deal on a wide variety of car brands and models. The reason why the cars at auction are sold for such brilliant prices is due to the fact that the previous owner defaulted on their vehicle loan repayments and as a result the bank was forced to take back possession of the vehicle. This has resulted in them having to sell the vehicle in order to make back the money still owing on the vehicle. This is the secret to repo car auctions, as the banks are only looking to make back that money owing and therefore you can get the cars at below market or trade value.
There are however a few points that you need to be aware of when you are looking at repo cars at bank auctions.
You cannot test drive the cars at repo auction
Unfortunately, you cannot take the vehicles out for a spin before you purchase. This is a downfall as without that experience of the vehicle, it does put a lot of people off purchasing at auction. However there are ways around this as if you want, you could go to a car dealership and test drive a vehicle that is the same make and model. However this will not allow you to determine if there is anything wrong with the vehicle.
Auction cars come “as is”
The reason why many people test-drive vehicles is to determine if they can suspect if anything is wrong with the vehicle. Unfortunately due to the fact you cannot test drive them it is essential that take a experienced motor mechanic and electrician to the show day in order to inspect the car. The reason why this is so important is because auction vehicles at auction are sold as is which means that the banks are not responsible should there be anything wrong with the vehicle. What is more is that even though the new Consumer Protection Act has come in to play to safeguard consumers against such occurrences this not does not apply to consumers who purchase their vehicles at auction.
You will be required to pay a deposit upfront
In order to attend and bid at an auction, the auction houses will require you to pay a registration fee. This registration fee is a safety net for the auction houses in order to safe guard them in case someone is the highest bidder and then cannot follow through with the payment of the vehicle. Should you follow through with the payment, this registration fee will be returned to you.
You may not get the car that you want
Unfortunately bidding at auction is another version of betting as you are bidding against other consumers who are interested in the same vehicle. It is therefore essential that you do not get caught up in the bidding war that could ensue. It is also therefore imperative that you go to the auction with a budget and you do not go over that budget. Otherwise you may find yourself in a situation where you cannot actually afford the vehicle and will end up in the same position as the previous owner.
For those of you who are interested in bank repo cars, then why not contact your bank and ask them for a list of the vehicles that the bank has up for auction. Alternatively you can look on their website or just search online for bank repo auctions as there are a number of sites that also have a private list of vehicles for auction.
Check the following video for a few tips on how to check a used car engine if you are thinking of buying a vehicle at an auction and do not know a motor mechanic that you could perhaps take along with you.
Video: Checking a used car engine: