Repossessed cars are no longer all that hard to find. Newspapers and web searches will turn up a number of results. Most repo cars were impounded by the police or collected by the bank from people who could not repay their loans. Repossessed cars are sold at reduced prices, so they are usually in high demand. Repo cars can be sold publicly by banks or in private auctions. Just be sure to carefully inspect the car so that you do not get ripped off.
- Skill level:
Things you need
- Phone book
Locate cars that have been repossessed before they are offered at a public auction or sale. You can do this by calling your local banks or credit unions. They usually maintain an up-to-date list of repossessed cars.
Check websites and the phone book for repo cars. Try looking for public auctions in the auto classifieds section of your newspaper.
Figure out how you are going to pay for the car. Repo car sellers want to complete sales quickly, so you need to have proper financing, cash or certified funds easily accessible. Apply for loan pre-approval from your bank or credit union before you attempt to buy a car.
Find out how much the year and model of the car you want should cost. You can find this information in the NADA Guide or the Kelley Blue Book. Repo cars should be significantly cheaper than new cars. The exact amount will vary depending on where the car was repossessed from, and the condition of the car.
Examine the car that you have chosen. Check its mileage. Get a vehicle history report from Car Fax or Auto Check to see if the car has been in an accident. You should also have a mechanic check the car. If everything seems OK and the price is right, purchase the car.
Tips and warnings
- Take the car for a test drive before you purchase it.
- Read the fine print of the contract that will make you the proud new owner of a repo car. It could include hidden fees, warranty information and other issues that could influence your decision to buy the car.
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