Repossessed cars, or the vehicles that are taken back by banks and lenders when the previous owner was no longer able to pay their monthly car bill, represent a fantastic opportunity to get into some pretty nice vehicles for a fraction of the price you would have been able to before.
Often times, these repossessed cars are sold from lenders and banks (or even the repossession companies that have seized them) for thousands and thousands of dollars less than you would have ever been able to purchase them on the open market – usually depending entirely upon the overall condition of the vehicle as well as how much money was left on the car note.
However, you need to be a little bit cautious before you decide to purchase any repossessed cars – as there are some issues that you may or may not be aware of with all of these vehicles.
Get as much information from the bank or lender about the vehicle as possible
The first thing that you’re going to want to do is make sure that you get just as much information about the vehicle as humanly possible from the bank or lender and then now has possession.
Obviously, you aren’t going to be able to get maintenance records, repair records, and other critical details of this nature unless the previous owner left them in the vehicle itself – but you’re still going to be able to get information as to the make, model, and general condition of the repossessed cars you are interested in.
Every single bit of data is going to help you make a decision as to whether or not specific repossessed cars are worth purchasing over other repossessed cars, and it all starts with gaining access to as much information from the current owner (that bank or lender) as humanly possible.
Always – ALWAYS – have the vehicle inspected by a mechanic
Secondly, you need to make sure that you have these repossessed cars inspected by a trusted mechanic, even if the bank or lender has already done so themselves.
Having your own independent mechanic look things over before you sign of the dotted line or hand over any cash whatsoever for repossessed cars is going to give you the kind of safety, security, and peace of mind you’re looking for – and just about guarantee you don’t walk into any surprises as far as your new repossessed car is concerned.
This is a nonnegotiable aspect of purchasing repossessed cars, and is certainly something that you cannot overlook.
Is this a good value buy?
Don’t just get sucked in by the low price point, make sure that it’s a good value with the cost of repairs or any maintenance necessary.
This is where things get a little bit “fuzzy”, just because each and every one of the repossessed cars you are looking into will be different and distinct from another. Some cars look fantastic on the surface and have all kinds of mechanical issues lying just beneath that glossy paint, whereas other cars look as though they had been kept in a barn for years and years but are pristine and just about perfect when you fire them up.
You really need to look very closely at the actual sticker price you are going to be asked to pay for these repossessed cars against any and all maintenance costs, repair costs, or other major costs associated with the purchase and figure out just exactly how much money (if any) you’ll be saving on these types of used vehicles. Only then will you be able to make a purchasing decision.