Repossessed cars for sale in Chula Vista offers an excellent opportunity for savvy car buyers to save money on quality, reliable discount cars. Banks and other lending institutions which repossess vehicles do not want the actual vehicle. Their goal is to recoup the remaining balance on the loan. In order to recoup these funds quickly, they often turn to auto auctions. This is great news for car buyers because it provides an opportunity to pay well below market price on quality used cars.
Repossessed Cars Often Sell for Less than the Remaining Loan Balance at Auction
One of the most important pieces of information to remember is that repossessed cars for sale in Chula Vista auto auctions typically carry a final sale price of less than the remaining loan balance. This is why it is more likely to get discount cars at an auto auction rather than purchasing them directly from the bank. Banks will typically try to sell a repossessed car for whatever the remaining balance of the loan is for approximately 15-30 days before it is sent to auction. Since they know the auction is always an option, they are less willing to negotiate on the price.
Another thing to keep in mind is the very first time a repossessed car is up for auction the lending institution will place a reserve bid amount equal to the remaining amount of loan balance. Don’t feel pressured to bid on the car right away. If no one bids on it or if the winning bid does not meet the reserve then the car will go back on the auction block later in the auction or at the following auction. Since the banks want their money back as quickly as possible, you are in a position of power if you are willing to be patient.
Examples of Recent Winning Bids at Repossessed Car Auctions in Chula Vista
2010 Ford Focus
At a recent repossession auction, a smart shopper brought home a 2010 Ford Focus valued at more than $16,000 for only $4,500. This particular vehicle was a gray sedan with only 48,000 miles on it. There were some minor dents and scratches; however the damage was entirely cosmetic. The vehicle starts and drove at the time of the auction.
2005 SAAB 9-3 Linea
Another great deal was discovered on a 2005 SAAB 9-3 Linear. This gray 4 door sedan did have fairly high mileage but it started and ran great. At the auction it was valued at just over $4,000 however the winning bidder paid only $1,200.