So you want to buy a cheap car. Your car should be in good working condition but you are ready to do some minor repair. Will you jump if I say, you can buy a car at 10% of its retail price? The truth is yes. Cars sold at repo car auctions are dirt cheap and you can find your desirable bargain at these places irrespective of your budget. 90% savings of the retail price is not bad for a pre-owned car. A car pre-owned by somebody else does not mean that it will be in bad condition.
Car owners who fall behind their loan payments are closely followed by their creditors. If they miss the payments continuously, the creditors will seize their vehicle to compensate the debts. These repo cars are actually running cars which were lost by the owners for missing loan payments. The creditors will hold these cars in the garage for some time to let the debtor clear off his debts. If the time limit is crossed, the cars will be marked for sale in auction. These marked cars will be sold in auctions if the garage has no place to park a car.
The government auctions and police auctions sell these repo cars but you can also find auction houses selling these cars. These houses will be given the job of selling various seized cars. It is true that the repo cars will be in the garage for a few days before auction. You cannot expect the creditors to maintain the cars of the debtors. Hence, some of these cars may need repair. However, the repair cost will be low because these cars were actually in use a few days ago.
The price of the cars will be much low in repo car auctions and this may lead to the question is this a scam? Repo auctions are not scams and the cars are sold dirt cheap only to recover the debts. The government institutions and the creditors don’t sell these cars for profit. They want to get rid of these cars to clear the garage and to recover the debts as well. Depending on the debts, these cars will be fixed a starting bid price which may be a few hundred dollars. If there is no competition, you can buy a $20,000 worth car for just $2000.
Car dealers love repo car auctions because they can buy almost new cars from these auctions. Look for the local media for advertisements of repo auctions. Never trust your dealer for auction details because he does not want you to take part in the auction and increase the competition. Today, information about local auctions is also available in the online auction database. For a small fee, you can get access to this database and know when a local auction is conducted in your place.
If you come to know that a repo auction is being held in your locality, never miss this one even if you don’t have an idea to buy a new car. You may be lucky to have your favorite luxury car auctioned and you can buy at dirt cheap price.