Q:

What are tips for finding and buying bank-repossessed cars?

A:

Quick Answer

Many banks keep listings of repossessed cars on their websites or in local branch offices. When buying a bank-repossessed car, it's best to examine the car's condition to determine if the cost of any repairs outweighs the potential savings compared to purchasing it new or used from a dealer.

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Full Answer

Buying a bank-repossessed car is great way for an individual to purchase a used vehicle at a significantly discounted price, though in many cases, the vehicle may not be work the effort or money for a private buyer. A bank or other financial institution typically repossesses a car after its owner defaults on an auto loan and fails to work out an agreement with the institution to retain ownership of the car. While a repossessed car can come in any condition, there is no guaranteed minimal level of quality. As such, a buyer needs to be able to assess the car's functionality and condition to determine the degree of work that needs to be done, if any.

Many bank-repossessed cars are sold at an auction, which means that buyers have the opportunity to inspect the vehicle prior to making the purchase. If the buyer does not have a strong knowledge of automotive engineering, it may be possible bring someone along who does to advise the buyer.

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