Buying repossessed cars is a great way to take advantage

Discovery Channel Buying repossessed cars is a great way to take advantage of the current economic climate. With car repossessions on the increase, there is an ever-growing number of good used cars available. These cars are usually sold to the highest bidder at car repo auctions. You can achieve great value at these auctions, with bidding often starting as low as $100, but there are some foolish people out there that don't get the kind of savings that you can make if you avoid some common mistakes. Since you are doing some research I know you are smarter than some, but I am going to provide the information you need to ensure that you are well prepared for the process of buying repossessed cars and that you get a quality vehicle at the lowest possible price.

Some people wait until they are desperate for a new car and rush along to an auction with shiny object syndrome and the pressure of having to walk away with a vehicle, any vehicle. These people will never get the best savings. Why? They haven't done any research. You can get a list of repossessed cars for sale at the auction prior to auction day. With this list in hand you can check out the history of the vehicles you are interested in and also the current market value. By doing this you can discount any vehicles that have a problematic past and also decide in advance what your top bid will be for the vehicle in accordance with the prevailing market value. I always advise that you set this limit below the market value to ensure you are getting a real bargain.

While attending any car auction, the cars available are normally on what you see is what you get basis. However one advantage of repo cars is that they are normally well maintained by the original owner right up until the repossession. Also given the sudden impact of the recession we are in, you will find a great number of late models available. Some people get distracted by the shiny new car they want and don't take advantage of the opportunity to inspect the vehicle before the auction. You should always take some time during the auction's inspection period to go over any vehicles you are interested in buying. Start off with a visual inspection for signs of any damage to the body of the car and then start the engine and listen to the sound of it for any unusual noises. I would also advise you to check the electrics are working and to dip the oil and transmission fluids. By doing this you will have confidence that you are bidding on a good used car and you will avoid the headaches of repair bills in the future. Be sensible about your criteria at this point. I will definitely disregard a vehicle if I suspected an engine fault but if it had a few scratches on the body work, I will bear in mind that value of the saving I could make on the car and make a judgment based on that.

Now auction novices, who are buying bank repossessed cars, will often be bidding against experienced car dealers who are attending the auction to find stock for their car lot. Don't let that put you off though. If you have researched the market value, the car history and completed your inspection, you are ready to start bidding with the best of them. The only thing you really need to ensure at this stage is that you are in control of your bidding. Don't behave like an amateur and get caught up in the excitement of the bidding or become so attached to one particular repo car that your budget multiplies in your mind. Stick to the limits you decided on before the auction begins.

Those who decide they are going to buy at the only auction they know about are more likely to lose control, as the auction day comes to an end. There are auctions taking place on a regular basis and if you have decided on a particular model that you want or if bids are going above your budget, you can relax in the knowledge that you just attend the next auction. Check out your local newspapers or save yourself some time by investing a few dollars in an online service that will give you comprehensive auction listings.

So in short, if you do some research in advance of the auction, inspect the vehicles you are interested in, stick to your guns and stay in control during the bidding and are prepared to wait for another opportunity, you can be the one bragging about the ridiculously low price you paid for your car. You might on the other hand want to keep that to yourself and let people think you paid a fortune for that amazing car in your driveway. Buying repossessed cars represents a great buying opportunity for the smartest buyers. Be smart and get great value!