If you are looking for repossessed cars for sale, you are actually tapping on a very lucrative market for cheap cars that the general public are not very aware of. There are actually many sources of repossessed cars for sale, we will look into these and discuss what buyers should look out for especially when you are new to such markets.
Repossessed cars for sale can come from:
1. Cars repossessed by credit unions, banks and lending institutions.
2. Vehicles from DEA drug raid seizures, FBI, IRS, U.S. Customs Auctions, and Department of Defense.
Such vehicles are typically auctioned off at lower than market value prices, sometimes as low as 10% of their current value. This is due to the fact that getting rid of them in the shortest time possible is the priority. However, since it is an auction, other factors such as competition and condition of the vehicles play a part in determining the final sale price.
There are different types of auctions:
1. Online Auctions. These auctions allow you to shop from the comfort of your home.
2. Public Car auctions. These are open to the public and no dealer’s license is required. These are very good avenue to buy repossessed cars for sale at wholesale prices.
3. Government Auctions. These feature cars seized or used by government agencies.
In order to find out when and where these are held in your area, you can refer to classified ads on local newspapers. Another good source of information is online databases that contain up-to-date listing of such auctions as well as information on vehicles on sale. You can also call up banks and government agencies for information but it can be a very tedious and painful process.
These cars do not always come with tip top condition due to their sources. Bring along a mechanic to check the condition of the vehicle you are eyeing. You should also look up the history of the vehicle with a CARFAX report which details any previous damages, repairs as well as outstanding liens associated with the automobile.
George is a webmaster and reviewer of online services. Read his review on an online service that contains up-to-date listing of repossessed cars for sale in US, Canada, Australia and parts of Europe.