There are number of ways in which you can fulfill your wish of buying a car and also feel satisfied that you got it at a relatively lesser price than available at the market price.
Yes, I am talking about purchasing a car not from the showroom of the dealer, but from any one of following other options - such as car retailers or second-hand car dealers, government seized car auctions, and repo car auctions.
Buying repossessed cars at car auctions, or repo car auctions, is one of the ways in which one can fulfill his dream of owning and driving a car.
What is a repossessed car and who auction such repo cars? Typically, banks and financial institutions involved in car loan businesses will be the ones that conduct repossessed car auctions.
If a person buys a car on loan from the bank and fails to repay the installments at periodic intervals, then the banker or the financier has no option but to take back the possession of the car hypothecated to the bank as collateral at the time of granting the loan.
The financial institution expects the auction to fetch a bare minimum price equivalent to the loan dues and any extra money that could be fetched from the auction will be a bonus to the financier.
The quality and working condition of the cars that are put for auction are expected to be relatively much better.
The reason for this is quite simple.
Until the time of repossession of the cars by the bank or financial institution, the owner would have maintained in good condition and it is only his or her inability to pay the periodical installments that had led to repossession.
Now you have decided to buy a repossessed car at a car auction.
What should you do further? The first and foremost thing is to have a clarity of thought with regard to your limits financially as to how much you are willing to spend for your car purchase.
This is very important that at the auction site, it might so happen that you are so obsessed with a car that you may end up paying a higher price than warranted.
The second thing you need to ensure is to check the condition of the vehicle put up for auction and also correlate the details in the vehicle with that given in the document.
The Vehicle chassis number and the engine number mentioned in the documents should be the same as the number engraved in the vehicle at the appropriate place.
A little bit of research would also be very useful for you.
Assess the resale value of the similar car model in the market place.
Arrange for a thorough inspection of the car at the auction spot- both its exterior look and the interior, especially the condition of the dashboard, the steering and such other things.
Assess how much you need to spend extra if you buy that repossessed car.
Having mental calculations of these things and also your estimated commitment for buying the vehicle, you can place the bid at the auction, and if executed properly, you would have ended with a wise decision.