Let’s be honest, the state of the economy isn’t at its most admirable these days, and a lot of us are struggling financially. Mortgages, rent, bills; it all adds up to one great big headache. There is hope in the automobile industry, however, as there are some convenient and affordable options for those looking to buy a new car.
That hope lies in the market of repossessed cars, or repo cars, which can yield a great deal of money when handled correctly. There are some things to watch out for, though, and this article will go over both the pros and the cons of buying a repossessed car.
One of the biggest pros of buying a repo car is that they are priced very generously from the perspective of the consumer. If a car has been repossessed by a bank, creditor, or other lending institution, that institution will be trying to recover as much of their investment as is possible, even if that means lowering the price to a seemingly unrealistic rate.
Sometimes a car is repossessed when it is relatively new. Sometimes life can throw us unexpected curve balls and there are plenty of new car owners that suddenly find themselves unable to meet their financial obligations. In some cases you can find a repo car with less than 1,000 miles on it, and even as low as 200.
In other cases, however, a repossessed car may be more trouble than it’s worth. A huge con to the repo car market is that you have to be diligently vigilant when considering the condition of a car. The vehicle could be loaded with unseen damage, or on the verge of falling apart completely.
A fixer upper is okay if that’s what you’re looking for, but no one wants to buy a lemon – cheap or not. Basic research suggests that up to 80 percent of repossessed cars are in questionable condition, but they may be worth the low price offered.
Another pro to consider when looking into a repo car is the quick transaction process. Repossessed vehicles are typically sold at an auction of some sort, so interested buyers can choose their price. The entity that repossessed the vehicle wants to receive some return on the investment as soon as possible. Not only will they lower the asking price considerably in order to do this, but they will also make sure that the car changes hands as fast as possible.
There is limited paperwork required when purchasing a repo car to cut back on time spent reading and signing. When you need a new car you will want to have it in your possession and available to drive, as soon as the deal is done. That convenience is offered in the industry of repossessed automobiles.
When it comes down to it, you have to ask yourself the following question: Are the price and speed of a transaction for important that the overall quality of the vehicle? That’s up to you to decide. And remember, it is possible to find repo cars in wonderful condition, some so close to new that they still have that new car smell.
But you have to be careful when buying a repo car. Learn as much about the vehicle as you can, and get it checked out by a mechanic as soon as possible. Following these steps will ensure that you have an enjoyable and profitable repo car experience.