Repossessed Car Auctions – Giving You All the Facts

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There are many options for individuals looking for deals on cars today. Finding repossessed car auctions can give you an opportunity to save a lot of money on a newer model car that is in terrific shape. Many of the cars at these auctions have been turned in by their owners because of a financial setback or serious incident that has made it impossible for them to make their vehicle payments. checkout my latest blog posted at http://www.24racewayinmoberly.com/are-you-looking-for-car-auction-sites-online/

In the past car auctions were limited. There were auctions held for dealers where the newer model cars were often sold. When a car made it to the public auction, it was not in the shape that would meet the needs of most people. However, with over 1. 6 million vehicles repossessed in the past year, the public car auctions are offering a great variety of vehicles to bidders.

Banks, credit unions, and lenders repossess cars when the owners cannot make their payments. In many cases the cars are late model vehicles that have not been driven more than a few thousand miles. The lenders must recoup as much money on the loan as possible and find that the fastest way to accomplish this is through auctioning the car off.

Before the economic downturn many people were buying new vehicles regularly. When a new fad car was introduced, people in certain clichés had to purchase the car. Even though the payments were very high, they felt confident that they could make the payment. When the economy tanked many of these same people found they making far less money than previously and the high vehicle loan could not be paid. Instead of driving the vehicle, many of these people turned their vehicles back to the lender. These vehicles are in perfect condition, have little if any wear, and have extremely low mileage.

Late model vehicles also go to auction that have higher mileage because they were used for a few excursions before being repossessed. These vehicles normally have little damage and wear. They may have higher mileage and some interior damage if there were small children in the vehicle.

auto auction

A person who has gotten a loan using their vehicle as collateral may have their vehicle repossessed when they cannot make their loan payment. These cars are usually older model cars with high mileage. When the car is repossessed, the bank does not expect to receive the value of the car and a person may find that the car has some issues that will need to be addressed by a mechanic after they purchase the car.

When attending car auctions you will find that there may be thousands of vehicles available for bidding. There will be a wide range of choices of models, makes, and styles. Some of the cars will have every option available for that vehicle while others will be simple and basic models. The cars cannot be driven, but if you arrive early you can inspect the cars and start them to hear the engine.

Some auction houses provide a 90-day warranty on the cars that are purchased. However, when bidding on vehicles, it is important to remember that it is being purchased “as is.” Any repairs or damage that is discovered after purchase will be your responsibility. Some people attend the auctions with a mechanic to look over the car before bidding on it.

By taking some time to get information on the cars history and value you will have a better idea of how much to bid on the vehicle. In some cases a lender will want the bidding to start out high on a vehicle. However, the lender will take less if the bid drops. When a person is prepared and knows what they want, they can usually save forty to sixty percent on a vehicle when purchasing from repossessed car auctions.