Buying a new vehicle doesn’t just have to occur on the dealer lot. No, although a visit to the car dealership is a viable route to vehicle ownership, there are a lot of other ways that someone can acquire a vehicle which can take you to a driving range and driving ranges near you. One of these means is via a repo car auction, where interested parties can bid on cars they’re interested in.
Someone may have their vehicle repossessed for a variety of reasons. Perhaps they were late on payments and out of warnings. Or perhaps the driver had no valid auto insurance. Or maybe they forgot to go to traffic school to dismiss a ticket. Whatever the reason, a repossession occurs when a car is essentially taken away from the owner for some sort of wrongdoing. These cars are then often sold or auctioned off via public auction. Here’s a closer look at what to know about repo cars and repo car auctions, specifically when it comes to auctions in the state of New Jersey.
Benefits of Buying a Repo Car
The biggest benefit of buying a repo car is that you can typically get it at a much more affordable price than you would a standard new or used car. In fact, it’s estimated that the savings of buying a repo car versus a used car of the same make and model can be as much as 40 percent. That’s significant, and enticing.
Despite this benefit, one of the big drawbacks to buying a repo car is the uncertainty involved with doing so. It’s difficult to know how the car has been treated, whether it has sustained any damage or how well maintained the vehicle is. Acquiring the car at a repo auction, however, can help alleviate some of these uncertainties. We’ll explain why in the next section.
Benefits of a Repo Car Auction
One of the remarkable things about a repo car auction is that potential bidders often can check out the vehicle prior to choosing if they want to bid on it. You can’t have any vehicles you’re interested in professionally checked out, but you can look under the hood, start the car up and listen to the engine, and even slide underneath it to see for yourself how everything looks. While it doesn’t eliminate all the uncertainty involved with a potential bid, it can give potential new owners a little bit more peace of mind when going into the auction itself.
Another consideration you should take into a repo car auction is how many similar vehicles there are on the market. If there aren’t a lot of vehicles of a certain make or model on the market at a given time and you see one pop up at a repo auction, it may be wise to pursue it. But if the market is saturated with the vehicle you’re looking for, it might make more sense for you to take a little more time analyzing your options. Finally, another thing to consider is that more and more car dealerships are attending repo auctions to purchase cars for their used lots. This has the potential to make said auctions more competitive and possibly more difficult to get the car you’re seeking. It can also make you wonder about buying used.
At the end of the day, the decision is all yours when it comes to repo auctions. Like we said earlier, it is possible to realize a significant savings at a repo auction compared to buying the same car from a used car lot, it’s just up to you to decide whether the uncertainty is worth it to pursue.