The pros and cons of buying a repossessed car

The pros and cons of buying a repossessed car

Buying a car is not cheap. Much less if they are luxury cars, with many extras or electric ones. But, Have you perhaps considered buying a repossessed car? Do you know what the pros and cons of buying a repossessed car are?

If you need a vehicle but you cannot pay for it and doing it in installments is a problem, perhaps what we are going to tell you will help you solve it. Shall we start?

What is a repossessed car?

interior of a mercedes

Before talking to you about the benefits and risks of buying a repossessed car, it is important that you know what we are referring to. A repossessed car is one that, Due to a lack of payment for the vehicle, or the person themselves, it is withdrawn from them. These vehicles go through a "vehicle seal" period, which is when the asset (the car) is seized but not executed, something that can occur in months or years (up to a maximum of four).

When the embargo is effective, the vehicle is taken from the person for failing to pay the debt and these cars are listed in auctions, both public and private, so that another person can buy it at a much cheaper price than if it were from second hand or even new.

The auctions are not closed and anyone of legal age could access them. As we told you, there are two types:

  • public, which are those carried out by the State, by the Treasury, by Social Security...
  • private, which are only organized by banks or auction houses.

Requirements to buy a repossessed car

parked car

When buying a repossessed car, the first thing you will have to do is go to an auction. And for this, you will have to Accredit yourself with your ID. The vast majority of auctions only ask for this requirement.

However, There is another more common one: the deposit. That is, the fact that, to enter and bid in an auction, you will need to leave a minimum amount of money on deposit.

There are other types of requirements that may also be required, but these already depend on the auction itself. And there are times when, due to the type of auction, the vehicles that are offered, etc. They may request other types of compliance.

What are the pros and cons of buying a repossessed car?

dog inside a car

If you have already searched for auctions of repossessed cars and you have seen some very succulent ones in terms of price and type of vehicle, before embarking on the adventure with them, you should know what the pros and cons of buying a repossessed car are.

Pros of a repossessed car

One of the main advantages why many decide to try their luck at auctions is due to the vehicle options you find. And not only cars are put up for auction, but also motorcycles, vans, trucks, tractors... And they do it at much more affordable prices than if the vehicle were second-hand or zero kilometer. For that reason alone, many opt for the option.

Another pro of buying a repossessed car is the possibility of leaving the auction with the car. When you buy it new you often have to wait, but the same doesn't happen here. It will be yours directly and you can take it with you without any problem. Of course, everything will depend on each specific case.

Regarding reviews and certifications, only in the case of private auctions is this type of information and guarantee available. The same does not happen in public ones, which is why it is always more interesting to go to private ones even when the price of the cars may be a little higher.

Finally, another benefit that we can mention is regarding maintenance. Except in exceptional cases, Car maintenance is usually cheaper because it is second-hand.

Cons of a repossessed car

We know that the pros tip the balance a lot when it comes to buying a repossessed car. But not everything is pretty.

One of the cons you face when purchasing this type of vehicle is the fact that you have no guarantee. That is, if you buy the car and at a given time in a few months, or a year, it has a problem, whoever sells it to you (at public or private auction) is not responsible for that fix.

Furthermore, you should know that in this type of auctions You can never test or even start the car to see if it works. They will give you information, yes, but it will be basic and they will not answer any doubts or questions you may have. The only thing you will be able to do is see the condition of the car on an external level, if it has dents, if the paint is good, sometimes if the engine looks clean or decent... But let's say that you take a gamble because until the car passes being yours you cannot "get close" and really see the state it is in. Of course, it's not like they're going to sell you something that doesn't work. In reality, there are technicians and mechanics who certify that the car is fine, or failing that, they tell you if it has any damage. That will be reflected in the information.

Now, keep in mind that these cars You don't really know how they have been cared for. In general, they are usually fine, but it may be the case that this is not the case, and therefore its useful life, and the moment when it begins to fail and entails a bloody outlay of money, may be shortened over time.

You should also not forget where the car comes from. This is a repossessed vehicle, and as such, you have to pay the car repossession so that the debt disappears and is "free."

The final decision is yours. But we recommend that you weigh everything carefully before bidding on a car. Especially because if you want it to turn out well, you must be aware of the pros and cons of buying a repossessed car so you don't regret it later.

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