Spending the money on purchasing a new car model can put you into debt for years to come. Yet, if you plan on having reliable transportation to get you around town, you will need to own a car which is in good condition and this will cost money. There seems to be no way around this dilemma, as you can either purchase a used car which may not be in the best condition yet is less expensive, or a new or used car which is in perfect shape and costs a lot. You may be able to find a compromise, however, when you look to repossessed cars. These vehicles are often in a great working condition and are sold at very low prices based on the fact that they can be found through car auctions.
These cars are ones which have been repossessed when people default on their car loan payments. Since they cannot continue paying the bank back for the loan which they took out, the bank will take the car. The problem comes in the fact that the bank should not have to pay rent on storing that car because they are already losing money on the defaulted loan. Instead, the bank sells the car at an auction to try and make back at least some of the money which they have lost.
Cars at auction could start out $100 this is not necessarily the price you will pay. However it is where you start and it goes up from there. Finally when all bidding is stopped that is the price that is paid for the car. This price is still considerably lower than what you would pay for it had you bought it at a dealership.
Repossessed cars in general are often in a great working condition, as they are cars which are being used by the people who bought them in the first place. Most repossessed cars are newer models, having come out within the past few years. Although this is not always the case, when you turn to a repossession for a vehicle option, you should be able to get a vehicle which is still in prime working condition for the price of an older used car which will probably need some work.
Once you take possession of your prize take it to the doctor. Just because the auction house says it runs great, you really don’t know how long the car will last. Most houses will be upfront with you and let you inspect the car before you buy it but you don’t get to drive it to really know. Auction houses try to do everything on the up and up because it benefits them in the long run.
by Huzaili Aris