You can buy at these auctions too and save a lot of money when purchasing your next vehicle.
Selling repos bought for cheap at auction is a great way to make a little extra cash or generate a lot of money depending on how much time you want to spend on it.
Regardless of why you are buying, the key is to be able to successfully bid so you can get the cars you want at low prices.
Find out what will be available by requesting an auction list from the auction agency.
You can find out about repo auto auctions by calling local lenders who repossess cars, checking with local auction companies to see if they handle these kinds of auctions, and looking in the paper.
Also consider signing up with a repossessed cars and trucks website.
They usually have searchable listings for many auctions and will give notification of future ones.
Most require a paid membership, but they make it easy and quick to find out about several auctions at a time.
Set a maximum bid for each car.
You can do this by starting with the trade-in value from a used car guide (try the Kelly Blue Book and NADA guides) and lowering the amount to cover the costs of any repairs you note during the preview period.
Some people like to lower it another 5-10% to cover unnoticed repairs.
Then once it is all repaired, you can either drive the car or sell it to someone else for a nice profit.
Go to the auction prepared.
Make sure you have your financing all arranged and that you have the required deposit available in the proper form of payment.
You can check ahead with the auction company to find out how much the deposit will be (usually $500 or 10%), what types of payment they accept (cash or cashier's check most frequently) and when the rest of the money must be paid by (typically 24-72 hours).
Remember to bring your photo ID to show when registering to bid.
Be sure to bid smartly.
You don't need to be the first to bid when a car you like is up.
In fact, it is usually better to let someone else start while you wait to enter the bidding.
Don't let yourself get caught up in a bidding war with someone else.
If the price goes over your maximum bid, then stop bidding and wait for another car.
There is a lot of variety at auctions and new inventory at each one, so you can find what you want for the price you want if you are willing to be patient.
Complete the transaction to take ownership of the auto.
At the end of the auction, you will need to pay the deposit for any auctions you won and pay the rest in the set time if you are not paying in full right away.
Some auctions may offer an on-site inspection for a fee or you can get the car inspected off-site.
Find out beforehand what the auction policies are for returns.
Some are completely as-is while others may give you up to three days to return any car that has significant problems.