How to Buy Repo Vehicles

Purchasing a repossessed vehicle is as simple as attending a repossessed property auction or purchasing directly from a bank or used car dealership. The difficulty involved is that the car itself may be in very poor condition, although you'll likely spend significantly less than the market value.

Instructions

1

Read local publications and look for advertisements of repossessed vehicle and property auctions. These auctions are held regularly by banks, credit unions and auto lenders to clear inventory of repossessed cars. The events are usually fairly short and payment for all auctions is expected immediately. You must buy the vehicle in cash without turning to a lender for financing.

2

Attend a repossessed car auction in your area. Bring a copy of the Kelly Blue Book with you so you can check listed average prices for used cars to determine if you're getting a good deal. Don't bid on a vehicle unless the auctioneer allows you to inspect it before purchase. If you can, bring a automobile mechanic with you to look for common issues with the vehicle. In many cases, the previous owner may have neglected maintenance because he knew the vehicle would eventually be seized. Banks and credit unions rarely perform any repairs or basic maintenance on the repossessed cars. If you purchase a broken-down vehicle from a repossession auction, you have no recourse.

3

Consider seeking out advertisements for auto sales directly from banks, credit unions and used car retailers. This is a moderately safer option than purchasing from auction, but the prices could be slightly higher.

4

Order a CARFAX vehicle history on any repossessed car that you're looking to purchase directly. This vehicle history may not be perfectly accurate, but it will at least give you a general idea of any issues that the car may have had in the past.

5

Purchase the repossessed vehicle after you have had time to inspect it for any mechanical problems. This purchase is legally identical to buying a used car, and you can seek out an auto loan to finance the purchase.