The best place to purchase repossessed cars is at auto auctions, according to CarsDirect. There are a few different types of auctions from which to choose, including bank auctions, police auctions and public auctions. Some lenders may also sell repossessed cars on eBay.
Banks are required to advertise any upcoming auctions two weeks in advance in local newspapers, states CarsDirect. The same requirement exists for police auctions. In many cases, the inventory is listed in the advertisement. A buyer can attend one of these auctions and bid on the repossessed cars that are available for sale. The goal of the auction is to help the lender recoup some of the costs associated with the repossession.