Are you shopping for a deal on a vehicle? Have you ever considered purchasing a repossessed vehicle but didn’t want to pay to locate repos? This article will provide you with information on understanding what a “repo” is, the benefits of buying one directly from the financial institution, and where you as a consumer can locate repossessed repossessed vehicles locally.
Much has been said about buying repossessed vehicles. While most of it has focused on the great deals you get, it’s important to understand what a “repo” is, and why you get a better deal. Calling a car a “repo” doesn’t automatically make it a good deal. A lot of the used cars you see at dealerships were once repos too. Most of the larger Banks will send their repos to “Dealer Only” auctions. Here Dealers will buy them at wholesale, clean them up, and then sell them to consumers for a commission. Once a Dealer adds a commission or fees to the wholesale price, it is now a retail price and the term “repo” is inaccurate. Dealers may still call them “repos”, but in reality this is nothing more than a sales gimmick.
Many of the smaller Credit Unions deal only in lower volumes, and get better results from selling their repos to the public. Typically they will post a link on their website that provides information about their current inventory. By skipping the Dealer and buying directly from your local Credit Unions you avoid paying and fees or commissions for a bona-fide “repo”. Credit Unions are anxious to sell these vehicles and can make added concessions that a Dealer or other private party could not.
There seems to be a stigma with the term “Used Car Salesman”. Although most Dealers are honest, consumers become somewhat guarded when negotiating a vehicle purchase. Nobody wants to get buyers remorse after they find out they were mislead.
When you buy a repossessed car directly, you can be assured that they are not paying a sales commission or any hidden fees. Credit Unions want nothing more that to retain your trust. The Credit Union motto is; “not for profit, not for charity, but for service”. The Credit Unions have no incentive to sell you on a vehicle you don’t want.
Credit Unions are not Car Dealers, but they can still sell cars and provide onsite financing. Perhaps the best perk of buying from a Credit Union is the financing. Ask any Car Dealer about financing and they will most likely tell you the Credit Unions are the best. Credit Unions can do things that larger Banks can’t.
Many Credit Unions who sell “repos” will even provide special financing terms as low as 0% financing. When buying these vehicles you can negotiate both the price and the financing terms. If the they can’t budge on the price, try asking for a reduction in the interest rate.
The next step is to start looking for a repo deal. RepoFinder’s website was designed and built with deal-seekers in mind. The website is 100% free to use and is the best place to start your repo search. RepoFinder connects you directly to the Lenders.