Repossessed Cars

1)   WHERE TO FIND REPOSSESSED CARS

A person can always pick up major bargains when searching for repossessed cars and end up paying much less than the vehicle’s market value if shopping around.  These cars can be found at an authorised repo dealer.

Repossessed cars may not be for sale immediately because the bank who repossesses the vehicle usually keeps it for a holding period to give the client a last chance to pay the account up to date.

Financial institutions send the repossessed cars frequently to dealer auctions to where the vehicles are sold.  Some still make use of public auctions as well. Remember that the maintenance on these vehicles may be neglected because the client had difficulties to keep up with the payments and therefore financially could not afford services etc.

A great source if you are looking for cheap cars for sale is government car auctions.  The government sells off  their vehicles only two to three years old. One great advantage of buying a government car at auction is that all government bodies have to comply with health and safety regulations and every vehicle is thoroughly checked and serviced on a regular base. The biggest advantage is that you can save up to 95% on market price by looking for a vehicle that has been repossessed by the government. These deals are not widely advertised and that is why it is so difficult to get hold of these vehicles.   Therefor you can save extremely by finding auctions in your area.

Buying repossessed cars is a much easier process now that we can make use of the Internet. We can learn valuable tips and tricks on repossessed cars in order to maximize savings.  Here is some usefull information regarding what to look out for before purchasing repossessed cars.

The internet is definitely the first place to look when searching for repossessed cars.  To view cars on auction go to this page Cars on Auction.  The next  place you might check is your local police website.  They will usually have a page on auctions. Most information with dates and location will be found here. The municipalities are listing the repossessed vehicles online before bidding. This is a great time to browse through their list and find the vehicle you are looking for. This way you will be prepared when attending the auction and have a good idea they have to offer.

If you type into the search engines on the Internet “repossessed cars for sale” a complete list of bank repossessed cars and repossessed car websites will pop up.  Remember to also ad the area to your search bar. Some of the banks and dealers will also have a list online of the cars that has been repossessed and being placed on auctions.

Remember to always ask when calling if the cars are on auction or just up for sale. If sold at a auction they may require a dealer license from you. Be sure to ask someone who owns one to bid for you instead if you do not own one.  Banks may in some cases give discount as they want to move the inventory as soon as possible. Selling repossessed cars is not their main priority and would therefor like to get rid of these vehicles as soon as possible.

It is also wise to get a mechanic or a friend who knows the inside out of a engine to have a look before making the final decision on purchasing a car on auction.  You do not want to go through the agony and disappointment of buying a bad deal.  Be sure to ask as many questions as possible as well.

Remember to have a look at these great cars on auction.

2)   REPOSSESSION OF CARS

Repossession of cars is a common occurrence if you owe your creditor and you had used it as collateral or if you purchased it on credit term where you are supposed to pay inform of installments.  In this case the car is the property of the seller until you pay the last installment. If you fail to do so the seller has the right to repossess the car to offset the balance that is remaining without going to court or in some case without warning you in advance.

On a brighter note, the creditor is subject to some limitations before repossessing your car which he must adhere to. In a situation where the creditor violates this laws he can lose other right against you or even be required to pay you for damages.

Repossession of cars can be done anywhere and at any time but there are some protocols that the creditor should follow during the exercise. The creditor should not commit a breach of peace such as using physical force or threats of force. In addition, removing the car from a closed garage or taking the car without your consent will also constitute to a breach of peace.  In case he violates the breach of peace he will be required to pay a penalty or if in the process of the repossession you were hurt or your property was destroyed the creditor will have to compensate you. Again a breach of peace can lead to the creditor losing the right to collect a deficiency judgment which is the difference between what you owe him and what he gets after reselling your car.

Once a repossession of cars has occurred the creditors may decide to either resell the car or keep it as compensation for your debt. In most cases he must inform you what he intends to do with the car.

Furthermore if you feel the car is worth more than what you owe, you have the right to ask the creditor to resell it and if he decides to sell it he must notify you in order to participate  in the bidding if you choose to.

In the case of a private sale he should also inform you and if you choose to you can  pay the full amount you owed them and compensate the creditor the expenses he incurred during the repossession process.

The creditor has no right to sell any personal property in the car and he should put all measures necessary to guard them.

In some cases a creditor may sue you to pay a deficiency which is the difference between what you owe him and what he gets after reselling the car. If the creditor sues you for a deficiency judgment to offset the difference there are laws which protect you, where depreciating goods are involved.

Therefore, if you are summoned for a court hearing you should attend because if the creditor breached the peace when repossessing the car or did not resell it in a commercially reasonable manner, it may work for your defence.

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