Bank Repossessed cars: Are they worth it?

We've all heard you can make a killing by buying a bank repossessed car. Deals go from 20-30% off to huge discounts of up to 90% if you know what you're doing ( and you're a little lucky ). However, are these cars really worth it? Can you find cars in somewhat good conditions or are they all trash, as some people say?

Well, let's start by saying what bank repo cars are: These are vehicles that have been repossessed by banks after the original auto loan couldn't be payed in its entirety by the original buyer. Once this has happened, the bank is allowed to sell the vehicle in a public auction to the highest bidder. Now, since the bank wishes to make some money back from the defaulted loan, the final price these autos go for is usually much less than their market value. But, does this mean these cars have any problems associated with their condition?

Not at all. In fact, a repossessed car for sale is usually a pretty new car and it almost always come with all papers in order. What's more, you can always check the car's history with a VIN check ( and you should, as when buying any other used car ).

In a word, bank repossessed car auctions and government car auctions are great places to buy used cars safely, while getting great deals in the process.

We'll get into more used car auction tips on my next post.