| I'm getting a little frustrated with a lot of misinformation | | | | are the best bets for car buyers looking for a good |
| on the internet aimed at car buyers looking for "repo | | | | deal. But even with these, most still end up in the hands |
| cars for sale". Most of this information is aimed at | | | | of a Dealer and are again resold at retail prices. |
| pushing people to car auction websites. Car auction | | | | Why? Well, banks and credit unions aren't in the car |
| sites are fine and you can even find repossessed cars | | | | selling business and these vehicles are a real nuisance |
| through them, but let's set the record straight on what | | | | for them. While some of these lenders may have |
| really happens to a majority of repoed cars. | | | | "repo sales" from time to time, most elect to at least |
| True, while some repos do end up at public auctions, | | | | partially solve their problem quickly by selling their repos |
| thereby becoming very good potential buys for | | | | to outside companies or local Dealers. |
| consumers, most will never make it to these auctions | | | | If the vehicle goes to a local Dealer, it will again end up |
| and will instead eventually be sold to a new owner at | | | | on their lot or at a Dealer-Only auction ... and again |
| regular retail prices. | | | | away from the possible cheap purchase by a |
| The reason for this can be traced to the original lien | | | | consumer. |
| holder. If a repossessed vehicle was financed through | | | | If it goes to an outside company, some go to Dealer |
| a Dealership via their own in-house financing, the car is | | | | auctions and some (finally) go to public auctions. |
| going to end up back at the Dealership. Then, one of | | | | You can try calling your local lenders to see what they |
| two things will happen. | | | | do with their repos. As noted earlier, some do have |
| Either the Dealer will shine-up the vehicle and resell it | | | | their own sales periodically, although they are a |
| on the lot, or the Dealer will take it to a Dealer-Only | | | | minority. |
| auction and sell it to another Dealer. These vehicles will | | | | So, yes, you can find some nice repossessed vehicles |
| not see the light of day at a public car auction. And this | | | | at local public auctions. However, it will likely take some |
| is what happens to most repossessed vehicles since | | | | consistent shopping as well as some patience. The |
| they were financed at a Dealership. | | | | good deals are out there for the public. They're just not |
| What about those that had been independently | | | | as plentiful as some on the internet would have us |
| financed by a local bank or credit union? Well, these | | | | believe. |