How to Buy a Cheaper Repo Car From a Bank

Purchasing a repo car from a bank is one way to get a good used vehicle for less. Repo cars are sold for less than their retail value and blue book value. Some smaller banks sell repossessed vehicles to the public or to car auctions. Buying directly from the bank can help you save money because the middle man, the auctioneer or the used car salesman is eliminated.

Instructions

1

Contact your local bank to find out if they sell repossessed cars. If they do, find out what the procedures are for purchasing a vehicle from them. If they do not they may be able to provide you with information about other banks that do.

2

Check out the banks on-site sale. It is best to bring someone that is knowledgably about vehicles for advice about which vehicle would be best for your budget.

3

Ask for a vehicle history report or check the Carfax report at carfax.com, to see if there was any major damage to the car in the past that would result in expensive car repair costs for you in the future.

4

Test drive the vehicle. This will also help you to decide if the vehicle is in good working condition.

5

Find out the terms under which you can return the car to the bank if the car does in fact turn out to be a lemon.

6

Pay for the vehicle. Depending on your credit history and relationship with that bank you maybe able to purchase your vehicle with a car loan. An auto loan can help improve your credit rating if you make all monthly payments on time.