What is your perception of seized and repossessed cars? For far too many people seized and repossessed cars hold a certain stigma and they tend to think that these are all vehicles that’s been battered and bruised. Nothing could be further from the truth. Most of these vehicles are in top condition and are in fact the very same vehicles that second hand dealerships are selling.
Seized and repossessed cars are primarily cars that government agencies and private financial institutions lay claim on. The government agencies will usually lay claim on a vehicle if it was used in criminal activity or even if it’s a recovered stolen vehicle that’s not reclaimed by the original owner. The financial institutions in turn lay claim on vehicles where the owner fails to make his monthly payments. These vehicles, as you can imagine, are usually still in top condition and sometimes they are virtually brand new.
As good a deal as these seized and repossessed cars are, there are some pitfalls that you need to watch out for. Here are three invaluable tips that will help you in finding and purchasing a quality repossessed car:
- Do Your Homework…
Firstly you need to do your homework about the cars you are interested in. Make sure you know exactly how much you can get it for both new and second hand. Secondly, do your homework about the company you are buying the repossessed car from. If it’s at an auction make sure you check out their credentials and that they are actually selling repossessed cars. Many companies who claim to sell seized and repossessed cars are only making these claims to get you through their front door or into their website.
- Finding them is half the job done…
Finding decent seized and repossessed cars is probably the biggest challenge. There are some good websites that keep and maintain a database of all the seized vehicles that are for sale throughout the USA. Only a handful of these web services are actually connected to the various agencies and auction houses. Be careful of websites that only act as a middleman – make sure the give you direct access to their database that will enable you to search for specific vehicles and their locations. Finding the best deals is all about the quality of the website you are searching on and their database. Some dealerships claim to sell bargain repossessed cars, but it’s usually just an incentive for you to buy. Go instead to the source. Go and buy where the dealerships buy. This is where you will find the real deals.
- Be auction sassy…
When you do find your dream vehicle at that unbelievable price, you still need to be vigilant – especially at auctions. If you are not very good with cars and engines, then ask someone who is to accompany you. Check the vehicle thoroughly before bidding starts. Auctioned vehicles are sold ‘as-is’. If a third party grades or examines the vehicles, make sure they are reliable, especially at online auctions. And when you bid…don’t get caught up in the bidding. Fix your price and don’t bid above that!
If you just can’t afford that car that you really want, then seized and repossessed cars might just be what you are looking for. This is by no means an inferior source. Dealers and wholesaler have been buying their stock from these seized and repossessed auctions for a long time. With the internet these databases are available to the general public and you no longer need any special ‘contacts’ to get access to this great resource. Providing that you are vigilant and you do your due diligence you can’t really go wrong.