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Repossessed Cars

Geeta Dhavale
So you want to buy one of the repossessed cars, for a bargain price! Then read on about the precautions that need to be taken before buying repo cars, besides other things.
Imagine if you could buy your favorite Mercedes car at a steal? You will be thrilled but immediately you will come back to reality. But, it is possible to buy expensive cars at cheaper prices. How??? A reclaimed car auction is the event where your dream car can become yours.
Many situations leave numerous people unable to pay back their car loans. At such times, the bank regains the possession of the car and these cars become government and bank properties.
But neither banks nor government have the place to store these cars, and besides, keeping these cars just adds to their expense, so they prefer to sell them at a cheaper price through sales.
And this is where you get a chance to own an almost brand new flashy car for an unbelievable price. But you must know some crucial things associated with such auctions, and to get more insights on the car repossession process, read ahead.

Repossessed Car Laws

Before you buy such a car, you would probably want to know some car repossession laws, so that you can save your car from getting repossessed in future. Here are some of the rules that you need to be aware of:
  • The creditor can repossess the car if you do not pay on time, unless it is mentioned in the contract.
  • The lender can take away the car at any time he wants without sending you the notice, unless you have signed the clause of a default notice and a follow-up phone call.
  • Once you receive the default notice, you can negotiate with the creditor and convince him for the new payment structure.
  • The creditor would require a court order to repossess the car, if you have made more than 50% of payment.
  • Once the car is taken, the creditor can keep it as a compensation or can sell it to the third party.
(Note: These laws are subject to change as per the provisions in rules of each state.)

Tips Before You Buy Such Cars

There are certain things that you must keep in mind when it comes to bank repo cars for sale. Because most of the banks sell the cars 'as is', so the responsibility to check the car thoroughly lies on you.
Given are certain things that you 'must do' before buying any of the bank repo cars at a bargain price.
  • Check the car listings carefully.
  • Inspect the car closely for any physical damage.
  • Check the car interiors along with its shape and color.
  • Check the engine if it functions properly.
  • You can take an expert or a mechanic along to see if the car runs smoothly.
  • Make sure to go through all the papers of the automobile to avoid any illegal event.
  • Go through the purchase and warranty papers of the car.
  • If allowed, take a test drive to get a feel of the car.
Once you are satisfied with the condition of the car, you can start bidding. It would be advisable to avoid going overboard and trying to get a car over your budget, to avoid any financial problems in future.

How to Avail the Auctions

To participate in repossessed and used car auctions, you have to be vigilant. If you have your friends working in the banks then it is advisable to contact them. A good networking can help you be a part of good car auctions. Earlier, only licensed car dealers were allowed to bid for the cars but now repossessed car auctions are open for general public.
You can also go for online car auctions, where the environment is flexible and friendly. You can get to know the details, such as, model, make, color, mileage, and previous owner of the car, etc., in advance. But make sure that the websites you visit are authentic and licensed for such business and transactions.
Driving your dream car is now an affordable reality, if you cash in on reclaimed cars auctions well. Now go ahead and get a new car that your friends would envy.