If you have been wanting to buy a car – a bigger, better, fancier, tougher, sportier car – repossessed cars on auction offer great buying opportunities. But ‘buyer beware’!
Bargains available in the repossessed car market
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Now is the time for such bargains, provided, of course, you are one of the lucky ones who have money left to spend. For those with money, there are huge opportunities to get great repossessed cars at bargain basement prices.
Recent increase in car repossessions
The economic cycle worm has turned. The good times are over, at least for the moment. For many the time of economic joy and consumption is being replaced by the time of economic pain and repossession. Thousands of vehicles are being repossessed by banks and finance houses each month. And frankly the banks do not care too much how much they get for the repossessed cars.
Repossessed cars are auctioned – to get rid of them
Banks send the cars to the auction marts – they just want to get rid of them – and then chase the previous owners for the balance owing.
It does not seem to be a very clever strategy – seems they might be better off getting as much as they can for the cars, because they will get nothing more from many of the previous owners. But this IS an example of the uglier side of the capitalist system. The banks have done their ‘numbers’ and they have concluded this ‘system’ best suits their ‘bottom line’.
These cars can be bought at huge discounts
So, for those who can no longer afford their monthly repayments, their repossessed vehicles go to the auction houses, who sell then (usually at a big discount) to the highest bidder. According to Aucor Auctioneers, they have increased the number of their car auctions fromm five or six to 10 a month.
Beware that there are often no after-sales guarantees
If you are the highest (and sensible) bidder you will almost certainly have got yourself a bargain. BUT, be aware that there are often no guarantees. Nor do you know how badly the previous owner treated his or her car when repossession loomed – in the days and weeks before the actual repossession.
You probably can get a repossession car bargain – including the best 4×4 on the block, but bid with your eyes wide open