Local banks sell repossessed cars both directly to interested buyers and at auction. Usually, these auctions are listed in local newspapers and trade publications. You may also contact the banks directly about whether they hold such auctions. In some cases, banks sell repossessed cars directly to used-car companies, so you may want to contact local lots in your area about any deals.
Review local publications for advertisements of repossessed car auctions and sales. The auctions will usually be announced a few weeks before sales.
Compare the prices set at auction for cars to their Kelley Blue Book value. The Kelley Blue Book is the most widely accepted guide for pricing used cars. If a repossessed car is selling at auction for less than its Blue Book value, you may be able to sell it to a used-car dealer at a profit.
Contact local banks and credit unions and ask whether they have any repossessed cars for sale. They may also be willing to extend an auto loan to cover the sale at a rate discount.
Ensure that you are able to inspect the vehicle before you purchase it or bid on it. Individuals who know that their car may be repossessed rarely take care of their vehicles well. Ask the bank whether any maintenance has been performed since repossession. You will have no recourse if the vehicle fails to function properly after you purchase it. If you lack mechanical expertise, hire a mechanic to come with you to examine the car before finalizing your purchase.
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