Are you looking to buy a car on a budget? Finding repossessed cars usually priced below market value can be a smart money move. Banks, credit unions, or government agencies that reclaim vehicles due to missed payments are usually looking to sell quickly and for a discounted price to recoup costs. This can be a great opportunity for buyers. However, navigating this market can be tricky if you don’t know where to look or how to protect yourself. So, how do you avoid scams and find the best deal? Here we’ll share how to find repossessed cars without getting ripped off.
How to Find Repossessed Cars
Finding repossessed cars isn’t difficult, but avoiding scams is paramount. It’s easier than ever to find a great deal because of the rise of third-party sellers and online auctions, but not all sources are reliable. For example, scammers try to lure buyers with prices that seem too good to be true or misrepresent a vehicle’s condition. To protect yourself, stick to reputable platforms and verified sellers. Here are a few options to consider.
1. Auctions
Government, bank, and police auctions are a good place to start when looking for repossessed cars. These entities are eager to sell off cars at a discounted price to recover their losses quickly. You can call your local bank and ask about upcoming auctions. You also can check sites like GovDeals and Auto Auction Mall for listings.
2. Online Repossession Platforms
Dedicated sites offer listings of repossessed cars from banks and lenders. These platforms allow you to browse, bid, and purchase repossessed cars from anywhere. Make sure you visit verified platforms like RepoFinder, AutoBidMaster, or Copart. These platforms provide vehicle history reports, condition details, and photos. Make sure to read the fine print before placing a bid and understand things like buyer fees.
3. Licensed Auto Brokers
Brokers have access to exclusive auctions and handle the process for you. They have access to exclusive repossessed car inventories and can help you find, inspect, and purchase vehicles at lower prices. This can save you time, money, and ensure legal compliance. Make sure to search for reputable auto brokers with positive customer reviews and the necessary licensing. You also should understand their commission structure. Most brokers charge a flat fee or a percentage of the purchase price.
How to Avoid Scams
When you’ve found a car that you’re interested in, you should continue to do your research to make sure that you avoid scams. First, research the seller and make sure that the platform or institution is verified and reputable. Next, you’ll want to inspect the car and arrange for a pre-purchase inspection if possible. You also can shop with someone with auto knowledge who can look over the car. You’ll also want to check the title and make sure it is clean. You’ll want to avoid any cars marked as salvage. Lastly, avoid any too good to be true deals. Scammers usually lure buyers with unrealistically low prices.
Have you purchased a repossessed car? How did you find it? Let us know about your experience.
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Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.