Where can I buy a repossessed car?

Keep your eyes open for credit unions or banks who might store repossessed vehicles on their land – often the ‘for sale’ signs can be seen from the streets.  If the lender doesn’t have their own storage area for the cars, they will usually ask an auction company to sell the vehicles for them.

Try calling banks/credit unions in your area and ask how they sell repossessed vehicles.  Not all auctions are public, but for those which are, they want the public to know about it.  Many times information about repossessed car auctions will appear in the newspaper on a regular basis, perhaps weekly or monthly.

Be aware that repossessed cars are not always a great bargain for buyers.  Often the person who financed the vehicle was ‘upside down’ in the loan, meaning that they owed more than the vehicle was worth.  The lender needs to recoup as much of their loss as possible, so although they usually won’t try to sell the car for more than it’s worth, they might list it as close to market value, as possible.  They also try to get back the money used to tow and store the car before auction – so some of these repossessed vehicles will be pricey.  Always be sure you have access to blue book values (or something similar) if you want to attend an auction.