Tag Archives: cheap cars

auction hammer

What’s the Difference Between a Closed and Open Bid?

If you’re looking for the best deal on a vehicle, an auction can be a great place to shop. Car auctions are often cheaper than private sellers and dealers, but you’ll need to know how to place an effective bid. 

Most of the time, you’ll need to register with the auctioneer to place a bid. If you win, you’ll have to put down a deposit and return later for the full payment. However, each auction is different from the next, so it’s important to ask about their specific protocols. 

Today we’re going to talk about the two types of bids you can place: an open bid and a closed bid. Understanding their similarities and differences will help you find the best auctions to work with. 

How Car Auctions Work 

An auction refers to a sale in which buyers compete for an asset – in this case a car – by placing bids. Auctions are done in a variety of formats, including online or in-person. There are many types of cars sold through auctions, and many are in good condition. For example, repossessed cars are often sold at auctions because banks want to recoup some of their losses. 

There are a number of benefits to enjoy by buying a car through an auction such as fast turnaround times, great deals and a wide selection. And thanks to online auctions that can be done from the convenience of home, many people are finding that it’s safer and easier to buy cars this way instead of through a dealer. 

Open Bids vs Closed Bids 

There are two types of auctions: an open auction and a closed auction. 

  • Open auctions. In an open format, all bidders are aware of the bids submitted. Interested parties will place their bids and continue bidding higher until someone wins. Usually, the car is given to the person with the highest bid. 
  • Closed auctions. In a closed format, people place bids without anyone knowing what they are. Only the sellers know the bids and they may choose to do one round of bids or more depending on the bids they receive. 

We also want to point out that most auctions have fees you’ll have to pay if you do win the bid. This fee is paid on top of the winning bid. We also recommend arranging to inspect the vehicle in person and requesting a car history report. 

Shop for Repossessed Cars at RepoFinder – it’s Easier than an Auction! 

At RepoFinder, you can place bids on vehicles at any time. You do not need to wait for an auction to start. All of our vehicles are sold directly through banks and credit unions, so the transaction is between you and them. By cutting out the middleman, you’re able to significantly reduce time and out-of-pocket costs. Shop with RepoFinder today and find a safe, reliable car at a great price! 

new cars on dealer lot car shortage

Dealerships Continue to Battle Shortages. Are Repos Your Best Option?

Across the country, dealerships are facing an inventory shortage. This shortage is due to a lack of microchips being produced that are needed to run vehicles. On average, there are about 200 of these microchips in a standard vehicle. Manufacturers like to have a 45 to 60 day supply of these chips, but most only have a 10 day supply.

Let’s learn more about why there is a chip shortage, how it has affected the automotive industry and why buying a repo car might be your best option.

What is the Chip Shortage? 

During the COVID-19 pandemic, manufacturers cut back on their orders for microchips with the assumption that the car business was going to tank. Instead, the opposite happened. It took off. A lot of this had to do with the convenience of online car shopping – people were able to buy vehicles without having to leave their homes. 

Not only were people buying cars during the pandemic, but also the demand for personal electronics like cell phones and laptops increased. These same chips are used in these electronics, so production could not keep up with the demand. 

Fast forward to today and now car manufacturers have a bunch of cars fully built and ready to go to the dealerships but they don’t have the necessary microchips. Not only are dealerships low on inventory, but also they’ve had to increase their prices to help deal with the shortages. 

Now is a good time to trade in your vehicle, but buying something won’t be easy. So what do you do if you need something reliable and affordably priced? Buy a repo car! 

Why Repo Cars Might be Your Saving Grace 

Not everyone can wait for a new car. Some people are buying cars before they even hit the lot, but if you need something safe and reliable to get you to work or school, you can’t wait. A better option is to shop for a repossessed car, or a car that has been seized from its owner for failure to pay. 

Repo cars are often in good condition, though do expect to pay for some light repairs or maintenance. Usually when people aren’t making their car payments, they’re not paying for maintenance either. RepoFinder has a great selection of cars, trucks, SUVs, etc. that you can bid on for free! 

Some of the benefits of buying a repossessed vehicle are: 

  • Incredible savings – pay a fraction of what you would pay through a dealership
  • Fast turnaround times – our cars are available and ready to take home 
  • Motivated sellers that want to move their inventory – work out an even better deal! 

If you’re not finding what you need through a dealership, shop with RepoFinder. We continue to update our inventory with fresh vehicles that are ready for their next owner. 

Black Book of Values

Black Book Car Value: What Does this Mean?

There are a number of “book values” out there to help car owners get an accurate price on their vehicle. They were given the name of “book values” because back in the day, car values were printed on paper. Today, they’re available online. In this post, we’re going to cover Black Book values, but don’t forget that there are also red and blue ones just like Kelley Blue Book. 

What is the Black Book? 

The Black Book is a valuation website that provides car values and other information for dealers. It’s used to determine trade-in values, look at wholesale prices for auctions and decide on prices for used vehicles. Everyday consumers aren’t usually able to get Black Book prices, though there are similar resources online such as Edmunds. 

The difference between the Black Book and Blue Book is that the Black Book is designed for dealerships and the Blue Book is designed for consumers. For example, a consumer would use Kelley’s Blue Book to determine their trade-in value, while a dealership would use the Black Book to establish the value of a trade-in. 

Both the Blue Book and the Black Book evaluate millions of data points from dealerships and auctions to determine pricing. 

How Accurate is the Black Book? 

Generally speaking, the valuations are more specific in the Black Book. It’s updated more often and it collects data from wholesale auctions both in person and online. These numbers are then compared to the dealer advertised prices. Subscriptions are required to access Black Book access, though the public does have access to the price search features through third party sites. 

Do I Need to Know Black Book Values to Find the Best Prices? 

When shopping for used cars, you do not need to know any Black Book values. However, we do recommend knowing Blue Book numbers. These values are meant for consumers who are shopping for used vehicles. They can determine how much they should be paying for the vehicles they’re interested in, as well as what their trade-in is worth. 

Overall, the Blue Book is a trusted resource for consumers. It pulls information from a wide variety of sources, including weekly auto auctions and car selling sites. An algorithm then sorts through this information to make sense of it. The prices are posted and then shared with consumers. 

However, Kelley Blue Book is still just a guide – not an end-all-be-all. Many people think Kelley Blue Book sets its prices but it actually tracks prices. And sometimes, the information is outdated because it takes time to collect, organize and report. As long as you’re aware of this, you can use the Blue Book to your advantage. 

RepoFinder Has the Best Prices on Repo Cars

RepoFinder has a huge selection of used vehicles. These vehicles are mostly owned by banks and credit unions because their previous owner defaulted on their payments. With so many repo cars to choose from, you can find the perfect vehicle at an affordable price. Shop with us today and find a vehicle that meets your needs and budget. 

buying as-is car

What Does it Mean to Buy a Car in As-Is Condition?

When buying a car, you might come across vehicles sold in as-is condition. While the description is pretty obvious – you’re buying a car in the exact condition it’s in – it’s still important to know what this means and what you can expect with your purchase. Most importantly, don’t let buying as-is scare you away. If you’re looking for a great discount on a car, this might be the way to go! 

What Does As-Is Mean in the Car Industry?

You can buy many things in as-is condition – a home, a retail product or a car. All it means is that the item is being sold in its current condition with all issues known and unknown. In other words, if there are problems with the vehicle, the seller is not responsible for them. 

In terms of a vehicle, it’s also important to know that buying as-is means the car likely doesn’t have a warranty. (With newer repo cars, there is a chance the warranty is still intact.) Again, any problems that turn up with the vehicle are not the responsibility of the seller. You’ll have to pay for them out of pocket. 

What’s the Benefit of Buying an As-Is Vehicle? 

Because the buyer is taking a risk, as-is vehicles are discounted. For example, RepoFinder has a huge database of repossessed vehicles being sold by banks, credit unions and other lenders. They are selling their vehicles in as-is condition but for a discount. 

Many of the vehicles they’re selling are in good condition. They might need some basic maintenance, but nothing too elaborate. By purchasing these types of vehicles at a discount, you’ll have enough money to pay for the repairs and maintenance as well as have lower car payments each month. It’s a win-win on both sides! 

What are Some of the Risks of Buying As-Is?

Of course, buying anything as-is always comes with some risk. If you’re unhappy with the car or it ends up having significant problems, you can’t just drive it back to the dealership for a refund. This is why it pays to be a smart shopper. Look at the pictures, ask the seller questions, research the types of problems the particular car has (if any) and inspect the vehicle before signing the paperwork.  

Additionally, when you schedule an inspection, bring along someone who knows cars, whether it’s a mechanic or a knowledgeable friend. They’ll know some of the obvious things to look for. Once you’ve done your research, you can place a comfortable bid that will get you the car you want at a fair price. 

Shop for As-Is Vehicles Today 

RepoFinder makes it easy to shop for as-is vehicles. Browse our website for cars in your area that are being sold by credit unions and banks. They’re motivated sellers who are often willing to negotiate the best prices! 

parking lot of cars

What Happens When Cars are Repossessed?

When a person has trouble paying their auto loan, they can face repossession. Repossession laws vary by state, but in most cases, cars can be repossessed anywhere and without notification. Usually, the owner will have an opportunity to reclaim the car by catching up on payments or paying off the loan. If they’re unable to do this, the lender will keep the car and sell it to recoup their losses. 

Banks and credit unions are motivated sellers. They are in the business to make money by borrowing money – not selling motorcycles or sports cars. So, if you’re looking to buy a car at a discount, it’s worth looking into repo inventory sold directly through banks and lenders. You can get a car at an affordable price and possibly negotiate something lower! 

How Long Does it Take to Repossess a Car? 

From a legal standpoint, a lender can repossess a car after missing just one payment. It all depends on the state and the terms of the auto loan. But while they might seem eager, lenders don’t want their borrowers to default on their payments. And they don’t want to repossess cars, either. This process costs money. 

Unfortunately, not all vehicle owners can or want to catch up on their payments. If they can’t reclaim their car after the 30-day holding period, the banks will list it for sale. 

Where are Repossessions Sold? 

Lenders typically use third parties to repo and store their vehicles. Because they have to pay for storage fees, they want to move repossessions quickly. If the owner is unable to catch up on their payments, the banks will sell to one of the following: 

Dealership

Those who have a dealer’s license can purchase repos directly from an auction. Dealerships do this all the time and have the resources to inspect, clean and repair the vehicles. However, it’s important to know that these cars are not true repos, at least to the consumer. They are more like used vehicles because they have gone through an inspection and cost more. 

Private auction

Another option is for banks to sell their repossessed inventory through an auction where private sellers are welcome to place a bid. Private auctions give priority to their members who pay a fee to use their services. You don’t need a dealer’s license to join a private auction, but you will need to pay a fee. 

Public auction

Public auctions are open to the public. Typically, you can browse the inventory for free, but if you want to place a bid, you’ll need to pay a nominal fee. Public auctions tend to have a wide inventory of used cars, but you might have to dig through them to find what you want. Good cars go fast, so we always tell customers to be patient as well. 

Shop for a Repo Vehicle Today 

Repossessions are just like other vehicles, though some do require a bit more work and maintenance to get them up to speed. If their previous owner wasn’t making their payments, they probably weren’t taking their car in for oil changes and tire rotations, either. As long as you’re willing to put this into your new ride, you can walk away with an affordable car with all the features you want! 

getting financing for a car

How Do Loans from a Credit Union Work?

When you need to borrow money to purchase a used vehicle, a credit union can be a good option. Banks and credit unions are both financial institutions, but there are differences between them. Banks are for-profit institutions while credit unions are not-for-profit. This allows credit unions to offer lower interest rates and better customer service. 

If you are looking to buy a used or repossessed car, a credit union might be the best option for you. Let’s look at the benefits to getting an auto loan from a credit union and the steps to take. 

Benefits of Getting an Auto Loan from a Credit Union 

Credit unions use their non-profit status to pass savings along to their members. This is why interest rates and other fees are typically lower than what you would find at a bank. Not a member of a credit union? That’s no problem. Most eligibility requirements are based on where you work, where you live and the types of organizations you belong to. 

Once you do become a member, you can take advantage of the credit union’s services. Here are some of the benefits to expect from a credit union car loan:

  • Lower interest rates 
  • Higher approval odds 
  • Lower loan minimums 
  • Lower fees 
  • Better customer service 

Steps for Getting a Credit Union Car Loan 

Getting an auto loan from a credit union is very similar to getting one from the bank. There are generally four steps you’ll have to go through and everything is streamlined for your convenience. 

Apply for a loan 

The first step is to apply for a loan. You can do this online or at a local branch. Applying online is fast and convenient, but if you have questions, it’s best to fill out the application in person. Once you get your pre-approval, you can use this for negotiating power. 

Repossessed cars and trucks are sold by motivated sellers, so having a pre-approval will work in your favor. You can often negotiate a lower price because the seller knows you already have financing lined up. 

Provide proof of insurance 

You and your lender both want to protect your vehicle, and the way to do this is through insurance. You may need to provide proof that you have full-coverage comprehension and collision insurance to protect your vehicle. 

Show proof of income 

Your lender will also want to make sure that you can afford to pay back the loan. In the case of repossessions, the banks and lenders have already had one owner default on the vehicle so they certainly don’t want another. Expect to provide copies of your pay stubs or tax returns from the past two years. 

Finalize your loan 

Once all of the information and documentation are received, you’ll finalize your loan through a credit union representative. At this time, you’ll be told how much you qualify for, your interest rate and any other related terms and conditions. If you agree with everything, you’ll sign the loan agreement and take home your new car! 

RepoFinder has a huge inventory of repo vehicles waiting for new owners. Many of them come from banks and credit unions, which are highly motivated sellers. Browse our website today and negotiate with the sellers for the best possible prices.

paying cash for car

What are the Benefits of Paying Cash for a Car?

Few people have the ability to pay cash for a car. But if you are one of the lucky ones who has saved up enough cash, you can enjoy a wide range of benefits by paying in full. To keep your costs in line, consider shopping for a repossessed or bank-owned vehicle that will cost far less than what you’ll pay at the dealership. 

Let’s cover the reasons why paying for a repo car in cash is worth considering. 

No Money Loss to Interest 

Interest is a fee charged to you when borrowing money from someone else. Currently, interest rates on 60-month auto loans are around 5.27 percent. Rates depend on your credit score, age of the vehicle, term length of the loan and other factors. By paying cash, you’re using your own money and don’t have to pay interest. 

No Monthly Payments 

Once the “new car feeling” wears off, people are stuck paying a high monthly payment for the next five years or so. However, when you pay cash for a vehicle, you’re paying for everything upfront. While you might have to take from your savings, you can put money back every month because you won’t be spending it on a car payment. 

Better Negotiations 

Banks and credit unions selling repossessed cars are motivated sellers. They are often willing to negotiate and come down on price, unless a car has a lot of bids. If you have the cash to buy the vehicle outright, the seller will likely accept a lower offer. They’re about to receive payment in full and they’re not taking the risk that you’ll default on your payments. 

Avoid Being Underwater 

Cars depreciate extraordinarily fast. Even after making payments for several years, you’ll probably still owe more than what your car is worth. This is a hard cycle to be in, especially if you want to sell and upgrade to something else. When you pay cash, the car is entirely yours. You don’t have to worry about being underwater, and you can trade in your car at a later date and get something for it. 

Shop for Affordable Cars Today 

Paying for a car in cash isn’t for everyone, but it is definitely something you may want to consider if you want to avoid interest and high monthly payments. When you shop for used cars at RepoFinder.com, you’ll have access to hundreds of vehicles in all makes, models, conditions and price ranges. 

These cars are sold by banks and credit unions, so you can often negotiate an even better deal, especially when paying in cash. And, if you prefer to finance your purchase, you’re in the right spot! Banks and credit unions will work with you to get your monthly payments affordable. 

Start your search for cheap, used cars in good condition at RepoFinder.com.

pickup truck

Seized vs Repossessed vs Government Owned: What’s the Difference?

When shopping around for a used vehicle, you have more options than just the dealership. You can shop easy and get a great deal when you consider seized, repossessed or government owned vehicles. But first, it helps to know the difference between these types of vehicles, where they come from and how to get the best prices. 

What are Seized Cars? 

Each year, thousands of cars are seized by the banks, the government and law enforcement agencies. Many of these vehicles are put up for auction and sold to the public. Some are purchased by dealerships, cleaned up and then sold for a higher price. If you’re looking for a bargain, you’ll want to stick to vehicles that are being sold directly from the banks or lenders. 

Cars seized by the banks or government don’t always have a lot of information on them. Therefore, it’s up to you to do your research, look at the images and ask questions. You can also learn more about the vehicle by understanding what type of car it is and where it came from. 

Types of Repossessed Vehicles 

Cars are sold at auction for different reasons. Oftentimes, they were taken from their previous owner who defaulted on their payments. In some states, it takes just two or three missed payments to start the repossession process. Banks and lenders work quickly because they need to recoup their losses. Other times, the cars come from law enforcement or government agencies. More details are often known about these vehicles. 

Let’s look closer at the different types of repo vehicles: 

  • Seized cars. These cars are taken by law enforcement for having too many traffic violations. Or, they can be confiscated during a raid. These vehicles are usually well-maintained by the owner. In fact, the IRS and courts tend to seize luxury vehicles in good condition because they’re worth more.
  • Repossessed car. Repo cars are seized by lenders who haven’t been receiving payments. These cars are sometimes in poor quality because the owners couldn’t afford their loan, and therefore, probably couldn’t afford maintenance and repairs either. But a lot of great repos are out there! 
  • Previously-owned government cars. Government-owned cars were owned by government agencies that no longer need them. Most agencies update their cars often so these cars tend to be newer and in better quality. 

Where Can I Find Seized Vehicles? 

There are a number of places where you can find repossessed, seized or previously-owned government vehicles. You can start your search on government auction sites. Many offer free trials, but you generally have to pay to become a member and place a bid. 

For the best bargains and widest inventory, check out RepoFinder.com. We have a huge database of repossessed cars, trucks, minivans, RVs, ATVs, motorcycles, boats, small aircraft and more. We provide information on all of our vehicles, as well as plenty of images. Our site is free to use, and to unlock all of the features, you can upgrade to RepoFinder Pro for just $4.95 a month – cancel anytime. 

To find bank-owned vehicles at great prices, RepoFinder.com has what you need!

credit union pickup truck

Benefits of Buying Credit Union Repo Cars

Credit unions are a popular way to finance vehicles. They tend to have lower interest rates and fewer minimum loan requirements than banks. And because credit unions establish relationships with their members, they’re often more willing to work with people who have poor credit. 

Credit unions make money by charging interest on loans, collecting account fees and reinvesting money. So, if a member is unable to back the money they borrowed to purchase their vehicle, the credit union can take away their car and sell it to someone new. 

If you’re considering purchasing a used vehicle, here are some benefits to buying a credit union repo. 

Lower Prices 

Certainly, the biggest benefit to buying any type of repossessed car is the cost savings. You’re not paying anywhere close to what you would pay for a used car at a dealership – and you can walk away with a better vehicle in return! Your savings all depend on the car you’re buying and the condition it’s in, but experts say you can save around 20 to 40 percent. 

So why are the prices so low? Is it because the cars are in bad shape? Not necessarily. Credit unions aren’t in the business to sell cars and want them off their lot as soon as possible. To make these vehicles attractive, they must be priced competitively. However, in exchange for buying the car at a discount, you are buying it as-is. 

Easier Financing Options 

Another perk to buying a car from a credit union is that you can get easier financing options. Credit unions are motivated sellers so they’re often willing to negotiate and offer better loan terms if you get the financing through them. And depending on the cost of the car, you may even be able to pay in cash. 

If you do need financing, repos work similarly to a new or used vehicle. To strengthen your offer, it’s helpful to get pre-approved for financing in advance. This way, the credit union will know that you are a serious buyer. Typically, there’s less paperwork compared to a dealership as well.

Safe, Trustworthy Sellers

If you purchase a vehicle from a private seller, you don’t know what you’re getting. While credit union vehicles are purchased as-is, you are still buying them from a reputable seller. If you browse the inventory on RepoFinder.com, you’ll see that our sellers provide as much information on each vehicle as possible. 

Most sellers also encourage you to inspect the vehicle before signing the paperwork. They are not trying to rip off anyone – they are just motivated sellers looking to get rid of their repo inventory! For the best deals, keep an eye on the cars that you’re interested in. Credit unions slash their prices if no one bids on their vehicles. 

Ready to find a credit union repo car that meets your needs and won’t hurt your bank account? Check out the inventory at RepoFinder.com for free! 

buying a used car

Can You Get a Car Without a Down Payment?

This entry was posted in Financing and tagged , , , , on by .

You desperately need to buy a car but you lack the cash to make a down payment. A dealership might tell you that’s no problem – and it might not be. For them. But for you, it could mean a very high monthly payment that you can’t afford. So what happens when you need a new car to get you to work or school but you don’t have the cash to put down? Believe it or not, you do have a few options. 

RepoFinder.com has a huge inventory of bank-owned vehicles ready for their next owners. These vehicles are priced attractively so that the banks can recoup some of their losses. If you’re shopping for a used car on a budget, this could be the best way to get the car you need at a price you can afford – and without a large down payment. 

How Important are Down Payments? 

Buying a car is one of the biggest purchases of your life. The size of your loan depends on how much you put down, as well as the interest rate and repayment terms. Ideally, you should try to cover at least 20 percent of the purchase price when making a down payment. This can come from a trade-in, the cash you put down or a mix between the two. 

Ultimately, there is no one-size-fits-all answer for how much of a down payment to make on a car. But the more you put down, the better. Here are a few reasons why: 

  • With a 20 percent down payment, you might get better loan terms or a lower interest rate 
  • When the car depreciates, a sizeable down payment prevents you from owing more on the car than it’s worth (this is called ‘upside down’)
  • Without a down payment, you’re rolling all title and registration fees into your financing, causing you to pay more over the life of your loan 

Even a Small Down Payment Makes a Difference 

If you can’t afford to put 20 percent down, even a small down payment can make a difference. Let’s say you purchase a car for $20,000 at a 5.13 percent interest rate. At 60 months with nothing down, your payments are $415 a month. By putting just $1,500 down, you can reduce your monthly payments to $387. 

What if you suddenly need a new car but don’t have any money saved up? Good news – you can trade in your vehicle and use its equity for the down payment. Of course, this only works if your car is paid off or worth more than what you owe on it. But even if your car is only worth a few thousand dollars, this is enough for a down payment. 

Shop for Cheap Used Cars on RepoFinder

It sounds attractive to buy a car with zero down, but it’s usually not the best decision. You’ll likely get saddled with higher monthly payments and end up owing more than your car is worth. If you’re still not having any luck, shop the affordably priced bank-owned vehicles on RepoFinder.com. There are motivated sellers looking to sell repossessed vehicles at a discount to the public. You can find great deals and a simple $1,000 down payment goes a long way!