If you are looking for a used car on a tight budget, the traditional used car sales lot may not be your best option. Some of the best deals can be found at car auctions, where repossessed vehicles are up for sale to the general public.
Remember that shopping for a repossessed car offers no warranties, and the cars are offered as-is with no option for returns, but if you shop carefully you might be able to make a steal on a car that you would be excited to own.
Here are a few things to keep in mind when considering the purchase of a repossessed vehicle:
1 – There is an opportunity for substantial savings
Repossessed vehicles are removed from their previous owners at several different stages during ownership. Some of the vehicles were only owned and driven for a few months before they were repossessed. Some have been driven for a few years. The best deals are the cars that have lower mileage, since they were probably not owned for a very long period of time. Since you are buying the car in an auction setting, the sales price will depend on the amount of money the people in attendance are willing to spend on the cars. In most cases, you will be bidding against used car dealers who plan to buy the cars at a low price and then sell them for much more. Buying a repossessed car at auction allows you to pay for the car without paying the dealer’s profit margin.
2 – You will get a very limited overview of the cars being auctioned
You need to be a little more savvy when you buy a repossessed car at an auction. You will not be able to test drive the car before you make your purchase. You will be allowed to sit in the car and turn it on, and you will even have a chance to run it through the gears so you can make sure that it really works. If you are not much of a car specialist, you might consider bringing a friend who is a mechanic so that they can look the car over for you before you invest any money.
3 – What to look for when evaluating a repossessed vehicle
There are some specific things you should check out when you are evaluating a repossessed car for sale. Check the transmission fluid to make sure it is not brown and doesn’t smell burned. The antifreeze in the coolant system should be a nice neon green color. Look at the oil on the dipstick to make sure it doesn’t have a metallic sheen. Look for unusual wear and tear on the timing belt and fan belt. Finally, go around to the back of the car and look at the tailpipe. A large amount of deposits in the tailpipe can indicate a problem with the engine.
4 – Buying a repo can take time
When you decide to buy your next car from a repossession auction, be prepared to take your time. It is not as easy as finding a car on a dealer’s lot and filling out the paperwork. Many of the cars that are presented for auction will not be in top condition. The auction will include a wide range of vehicles, both old and new. These cars are not cleaned up much from the condition they were in when they were picked up from their previous owner. You may be surprised at how these vehicles look before they are bought by dealers and completely detailed.
Buying a repossessed car from an auction can take a little extra imagination on your part. You have to imagine what the car will look like once you take it home and completely clean it out. A good rule of thumb to remember is that engine repairs are less expensive than cosmetic repairs. Look for a car that has a solid body with no large dents, a decent interior, and no body rust. Even if you have to do a little work on the engine, it will cost less than repairing the paint or body.
Jessica Bosari writes for Billeater.com, a site that helps people cut costs, reduce expenses and find great deals. Pay Billeater a visit for more money-saving tips!
Credits: Photo courtesy of Konrad Andrews.