When buying repossessed vehicles, you have a number of ways to purchase them, such as from a lender auction, used car dealer or reseller service. However, the best way to buy repo cars is directly from a bank or credit union. Lenders just want to recoup their losses, so they’re willing to work with buyers and give them a great deal.
Below are a few reasons why it’s best to purchase repossessions from a bank or credit union.
Banks are Motivated Sellers
A car owner only needs to miss a few payments before their car is repossessed. Lenders rely on interest to make profits, so a car payment that isn’t being made is an immediate loss. If the bank can’t work with the owner to get paid, they will repossess the vehicle and recoup their losses.
With this in mind, banks are very motivated sellers. Some will allow you to look at their repo file, which lists repo cars, trucks, ATVs, RVs and more. The lists are free, unlike resellers that often charge for this service. Also, the lender will not clean up the vehicle as the dealerships do, so you can keep your price tag to a minimum.
Financing is Easier (and Cheaper!)
Another perk to buying a repossessed car or truck from a lender is that you can get quick financing, especially if you already have a relationship with the bank. Remember, the banks aren’t looking to make a profit. They just want to recoup their loss and move on. Banks make money by lending money, and this puts you in a great position.
For example, banks often incentivize repo sales with longer loan terms and reduced interest rates. Additionally, there are no commissions or fees when buying directly from the bank. The transaction takes place between you and the bank – no middleman.
The Selection is Higher Quality
Trashed repossessions typically go straight to auction. The banks won’t waste their time with them. This means that the lender’s list of repos should be decent. In fact, it’s not uncommon to find nearly new repossessions on the list. Sometimes, brand-new car owners can’t afford their payments, and their shiny new car gets repossessed.
Also, repossessions are not limited to cars and trucks only. You can also find a great selection of boats, airplanes, yachts, ATVs, RVs, farm equipment, airplanes and even homes!
Are you ready to buy a repossession from a local bank or credit union? There’s no need to spend hours on the internet looking for repo lists. RepoFinder.com offers a directory of banks selling repossessions in all 50 states. The service is completely free for you to use – no fees, no commissions and no transaction costs. Check us out today and find a repossession that fits your needs and budget.