Across the South Africa, right now, there are millions of second hand motor vehicles on sale through private sellers, second hand dealerships, and of course, repo vehicle dealerships.
Many buyers are cautious about used vehicles for a number of reasons. They ask themselves:
- What if there is something wrong with the car and it breaks down within a few weeks? How will I afford to repair it?
- Will I be able to sell it on in the future or is the mileage too high?
- Is the smiling salesman telling the truth about this car?
- Are they ripping me off with the price?
- Will the car’s owners ever actually see the money for the car?
Buying second hand can be daunting. Unless you are a mechanic or a serious car enthusiast, you will probably experience anxiety at the thought of buying your vehicle second hand. Cars are expensive, and if you cannot afford the payments on a brand new vehicle, your only option is to buy second hand.
A repossessed vehicle from a repo vehicle dealership might lessen your anxiety and make your experience somewhat easier.
What do they do?
A repo dealership auctions and sells cars on behalf of banks that have repossessed cars from clients who have not been able to make their loan payments. There are several benefits to purchasing a repossessed car over a normal second hand car.
- Repossessed cars are often quite new.
Who wouldn’t want a car that looks, feels and perhaps even smells new at second hand prices? Apart from the benefit of the aesthetics, the car would have less wear and tear on tyres, breaks, the clutch and other essential parts.
- Being new, the car might still have a warranty.
If the car is not too old, it might still have a warranty against rust or other damage. Some warranty’s are valid for as many as 12 years, or even more in some cases.
- The car might still have a service plan
Similar to warranty’s, service plans are valid for a number of years or kilometres and a repossessed car might still have one. This would save you money on services and, depending on your plan, minor damage and wear and tear.
- At an auction, there is not a set price
At an auction, the price is decided by the buyers. There is no set and non-negotiable price provided by the seller, the audience themselves decide how much they are willing to pay for a vehicle. However, the price can go higher if there are several people determined to buy one specific vehicle.
To sum, buying a bank repossessed car rather than a vehicle from a normal second hand dealership has several benefits and might save you stress and anxiety.
However, as with anything, there is a downside to looking for a repossessed car. Many second hand dealerships are not honest about their cars, and there have been cases of dealerships pretending that their vehicles are bank repossessed when they are not. In order to make sure the dealership you are dealing with is not deceiving you in any way, make use of the following tips.
a) Do your research before choosing a dealership. Many people, after having a bad experience, will put a complaint on the internet to warn other potential victims.
b) Ask your family and friends about their experiences with second hand dealerships.
c) If a dealership claims to be selling repossessed cars, contact the bank that allegedly repossessed those cars to make sure.
d) Be smart. Don’t fall for a winning smile and a lot of talk. Take someone with you, prepare a list of questions to ask and think carefully before purchasing your vehicle.
Finding a second hand vehicle is always going to be somewhat stressful, but finding a reputable repo vehicle dealership and choosing to buy a repossessed car rather than a second hand car might be the best move for you and for your peace of mind.