When buyers default on loan payments on their vehicles, the lender has the right to confiscate them without legal action. This act of seizing is known as repossession, and the vehicles are commonly referred to as “repo cars”. Buying these can be a great way of saving money, as they typically cost less than their fair market value. This article lists four places where one can find good deals on repo cars.

Lenders
Banks, credit unions, and other lenders maintain a file of their repossessed vehicles. Since they often want to recoup their costs, they may allow buyers to browse through this file. This is one of the best ways to find a great deal on repo cars. These lenders may also provide easy financing options or deals to buyers. However, it is important to note that banks and other lenders often do not pay heed to cleaning and maintenance of the car, which may add to costs later.

Reseller services
Reseller services are companies that specialize in selling repossessed vehicles. These third-party services focus on moving inventory quickly without assuming any ownership of the vehicle. This keeps prices low, as they do not add hefty margins to the sale. One advantage of buying from a reseller service is that their cars are generally sold in standard condition. They are cleaned and checked to ensure they are running well.

Repo auctions
Police repo and lender auctions occur frequently. However, these are generally only open to used car dealers. In some cases, individual buyers may also be allowed. Here, showing up with an approved loan or cash is advisable. What sets repo auctions apart is that one can check the inventory beforehand and decide on the highest bid well in advance. There is no involvement from middlemen in the process, making it one of the best ways to get a good deal on a repo car.

Used car dealers
For those who do not want to get involved in the hassle of attending countless auctions, used car dealers may be ideal. These dealers buy and assume ownership of the vehicle. It is then cleaned and checked thoroughly, and new bells and whistles may be added, such as mats or tires. The car is then listed for sale. Buyers may also get services like an extended warranty or in-house financing. While this method may feel pricier, it can help buyers ensure that their new used car is clean and runs well.

Before buying any repo car, please ensure that the car is inspected thoroughly by a licensed mechanic.