When lenders have to repossess vehicles, their priority is to sell them and recoup as much of the loan as possible. They usually offer recovered vehicles at or below fair market value, making defaulted vehicles quite a bargain for car buyers. If you have customers who are looking for affordable vehicles, Consolidated Automotive Services of Indiana recommends looking at these four locations for great deals.
1. Automotive Dealerships
Many car dealerships purchase repossessed vehicles to add to their used car sales inventory. There are times they may end up repossessing a vehicle directly from a customer if the individual had the vehicle financed through the dealership. Selling a repossessed car involves cleaning the vehicle, making any repairs, and filing the necessary paperwork, including a repossession title.
Auctions are ideal for purchasing repossessed vehicles at an affordable price. Cars that have been reclaimed by lenders or dealerships often sell them to auctions so they don’t have to manage any paperwork or repairs. While buying a recovered vehicle from an auction can be pretty inexpensive, the customer would need to acquire their own financing as this is not something available at auctions. Also, unless they attend a live auction, they may not have access to the vehicle before making the purchase, meaning they are buying a vehicle based on description only.
3. Finance Companies
Local banks and credit unions offer automotive financing for their personal and commercial customers. When their customers can’t pay their auto loans, the banks repossess the vehicles and then sell them to the public. In addition to getting an affordable car, the customer may also qualify for an auto loan from the bank or credit union from which they are buying the vehicle.
4. Repossession Companies
Customers can also buy loan-default vehicles straight from the repossession company. Purchasing a recovered vehicle this way cuts out any middleman, making the sales process fairly simple. In addition to paying for the vehicle itself, the customer may need to cover vehicle storage fees.
Call Us for Repossession Title Services
Let Consolidated Automotive handle all the title paperwork for any vehicle you sell, including repossessed, heavy-duty, and salvage titles. We conduct title and lien searches, process duplicate titles, and perform title transfers across all 50 states. Call us today at (812) 988-8300 to request a quote and learn how we can help your car dealership or auto finance company.
Source: Poe, Sheryll. “How To Buy Repo Cars and What To Consider.” Capital One Auto Navigator. 21 Jun. 2022. Web. 27 Dec. 2022.