How Do You Buy A Repossessed Vehicle?
A lender repossesses a car when the owner fails to pay on the loan or meet other terms of the loan agreement. Since lenders want to sell repossessed vehicles quickly, most put the autos up for auction, and anyone can participate in the bidding. If you have limited funds and need a vehicle or want to purchase a car to refurbish and resell, you can get a repo car at significant savings. Step 1 Find public auctions in your area. Check the newspaper, or search online for local opportunities. If you can’t find an auction site near you, consider an online auction. Step 2 Have the means to pay. Unless the auction house offers financing, immediate payment is required. If you are the highest bidder, you must leave a deposit-sometimes up to 25 percent of the purchase price-that day. The seller usually requires full payment by cash, cashier’s check or credit card within one day. Step 3 Bring a mechanic to look for defects that your untrained eye might miss, such as flood or collision damage, flui
