The primary advantage to buying a repossessed car is saving money, according to Trusted Choice. Buyers typically get repossessed cars below market value because the owners are normally trying to unload the cars quickly to recoup cash. Buyers may also save money on insurance coverage for repossessed cars.
One of the safest routes is for the buyer to purchase directly from the lender that repossessed the vehicle. The lender may offer the buyer reasonable financing options to expedite or simplify the purchase. A repo reseller service is another safe option, and this type of seller often cleans the car and details it just as a dealership would.
A police repo or lender auction often offers access to the best deals because buyers submit bids. Although bidding processes vary, the auction setup may allow for the lowest price point, though careful research is vital, according to CNN. Auctioned cars may be sold as-is, or the seller may do some basic repairs.
Along with the various paths to purchasing a repo car, the ability to look at cars ahead of time and perform research are benefits. In addition, a repo buyer may not have to deal with pressure from a direct salesperson, especially when the buyer participates in an auction-style process.