Do those car repo auctions actually save you money?

Question

has anyone bought a car from a repo auction?
any tips?

Answer 1

yep.
It is an auction so you can bid as high as you want.

You can get a really low price on a good car. But most are just junkers.

Answer 2

In general I would say it is not a good idea to buy a at a repo auction. A closed dealer auction is an entirely different thing, and if you had acess to a dealer auction, then that would have good cars at wholesale prices.

You may save some money on the sale price, but you need to add in some other factors, major failure risk, ie tranny, engine, AC, etc is bad. You can look at the car, but not really inspect it. Which some dealers and private sale customers may or may not allow you to do. But in a private sale, if the owner is driving the car every day, has repair records, and the car is clean, I would trust that more than a repo.
Minor damage. A lot of repos are damaged and that adds up, the user is usually not taking care of the car after defaulting on the loan, and may actually be abusing the car.

Selection risk, you don't really get the car you want, ie color and features, miles, etc.
Title risk. Are you sure the title is clean? The car may show repo on title search, and that may impact your ability to sell the car and the price might be lower than average.

If you were a mechanic or had a personal connection, you might be able to mitigate your cost risk as say replacing brakes, fluids, re-charging the AC, etc would not be as expensive as the going market repair prices.
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Answer 3

This year my company has taken 4928 repod units to the auctions. I know exactly what I am talking about.

If you seen 97% of these units when we repo them, you would not want to sit in one little lone buy it.

You get no history on the unit. You can not go to the auction and do a carfax on what you might like, it is "As is; where is; how is"

They do not let you drive them, however they do let you pre-inspect. Unless you have a crystal ball, or are an master tech., I would leave it alone.

I seen a 2007 Electric Blue Mustang go at an auction here for less than 5,000.00, I also seen the dealer that bought it have to have it towed out of the parking lot where it quit him.

Sure you can save money if the unit hold together, if it falls apart in the parking lot, it is yours to fix.

Good Luck and Happy Holidays.

Answer 4

There are a couple dealerships in my town that sell auction cars, but they never really admit they are auction cars because the auction cars have so many problems or at least most of the time. I don't think I would get one unless I was really desperate.

Answer 5

A small used-cars dealer do it all the time. They buy the auction car, fix it and sell it in their dealership.

This is no different than flipping houses. Same idea. You can make money if you know what you're doing and lose a lot when you fail.

Answer 6

i have bought from some at re-po auctions they will save you money if you know how to buy a car,and you have to look over them really good,take someone with you to look them over and then you might get a good deal,sometimes the ones that look real good aren't always the best deals,be careful this is a good way to loose money because all sales are final,good luck.

Answer 7

yes, but have an idea of what the vehicle would be worth first.....i have bought a number of vehicles that way, and resold them for a nice profit....the secret is not to pay tomuch...

Answer 8

yes they do at the current time, but they will die quicker and you will have to buy a new car sooner