Interested buyers can purchase repossessed cars from lenders, car dealers, reseller services, police repos and at lender auctions, at which they should first research and bid before purchasing the vehicle. Repossessed care are relatively cheap, but the buying process may be critical.
A person can check a bank's repo list to find vehicles to put bids on. Buyers should look up the car's National Automobile Dealers Association Guide's lowest estimated cost and consult a mechanical expert about the vehicle. Occasionally, banks repossess cars and sell them quickly in order to recover their losses, which may render the cars exceptionally cheap.
Many online companies help lenders sell repossessed vehicles. A buyer may find it better to buy a repo from a reseller service because unlike lenders, the services maintain the condition of the vehicles by cleaning and repairing them. To buy the car, the individual should identify it and place a bid. If the prospective buyer wins the auction, he either assesses or hires another person to evaluate it before paying for it.
Car dealers not only clean and repair repossessed vehicles, but they also add extra features, such as mats. Certain dealers offer in-house financing and 30-day guarantees to buyers. To buy a car from an auction, the buyer should register with the appropriate party, check the auctioneer's inventory, attend the auction and ensure that the repo fits him before purchasing it. The government may also seize and sell vehicles to the public at auction.