Buying a Repo

[Knight]

Do you guys have any advice on buying repos?

[MarvBear]

The dealerships I have worked for always sent their buyers to auctions to purchase vehicles. We could not always just depend on trade in vehicles.  I would notice many of them when they were delivered back to the dealership had the REPO sticker on the windshield from the repossessing bank.  All the vehicles were sent to the shop for inspection prior to their sale.

 

If you purchase a used vehicle, it would be wise to let an independent mechanic of YOUR choosing do an inspection of the vehicle to see if it passes muster.  If the dealership will not allow this, then I would not do business with them.

[Knight]

 

14 hours ago, MarvBear said:

The dealerships I have worked for always sent their buyers to auctions to purchase vehicles. We could not always just depend on trade in vehicles.  I would notice many of them when they were delivered back to the dealership had the REPO sticker on the windshield from the repossessing bank.  All the vehicles were sent to the shop for inspection prior to their sale.

 

If you purchase a used vehicle, it would be wise to let an independent mechanic of YOUR choosing do an inspection of the vehicle to see if it passes muster.  If the dealership will not allow this, then I would not do business with them.

Do you know where I can find these auctions? I think some of them require a dealer's license.

[MarvBear]

 

All of the auctions I am aware of require you to have credentials. And payment in full if you are the winning bidder.  You will get the title whenever it happens.  I have heard that sometimes Credit Unions have local options for their repossessions.

[Knight]

On 12/11/2022 at 6:54 AM, MarvBear said:

 

All of the auctions I am aware of require you to have credentials. And payment in full if you are the winning bidder.  You will get the title whenever it happens.  I have heard that sometimes Credit Unions have local options for their repossessions.

 

In your experience, in general what was the price range that the dealership paid "on the dollar" for those repos?

[MarvBear]

My personal preference when I bought from the auction was to purchase current year models with 5,000 to 15,000 miles.  They were usually $2,000 to ~$4000 behind my dealer invoice and of course any applicable incentives offered from the manufacturer.  I'm deeply sorry, but I really can't give you a definitive answer.  I never went looking to purchase repossessions, it's just that as they come through the bidding lanes they are clearly identified as being from a particular bank.  I would never bid as high on these because I have always been wary of a potential title problem.

[IndyPoolPlayer]

On 12/16/2022 at 8:45 AM, MarvBear said:

 I would never bid as high on these because I have always been wary of a potential title problem.

 

Just think when Carvana goes bust later this year how many cars will hit the Manheim auction lanes with lost titles.

[MarvBear]

Yeah, then whoever bought them will have to pay for Bonded Title if their states even offer that capability.   That's a big oops!!