If you are looking for a cheap vehicle, a repo auction is one of the best opportunities to find one. While not only of these auctions are open to the public, we will discuss how to find one and proxy bid through a dealer. There are certain risks you will need to understand as well when you bid on a repossessed vehicle. Below we will discuss the ins and ops of repo auctions including where to find automobile repo auctions near me.
Map of Repo Auctions Near Me
For “Repo Auctions Near Me”, see the map below…
What is a Repo Auction
A repo auction stands for repossession auction. These events are most common among vehicles, but also for mobile homes. We will focus on vehicle repos, but the logic is all the same no matter what type of repo auction is held…
All of the autos to bid on are a result of the owners failure to make their vehicle payments. When this happens the holder of the lien reclaims the vehicle as they are still the title holder. The process of auto possession depends on state laws and the lien holders policies. Some repossess within days of missing payments, while others give a grace period for payment.
Most repo auctions near me are actually repo dealer auctions. These style of auctions let lien holders like banks and leasing companies sell off their repossessed vehicles fast. It is in the lenders best interest to move the vehicle fast to recoup the finances and they don’t have the storage space.
Types of Repossession Auctions
The three most common types of repossession auctions are online, and lender.
Live Police Repo Auctions
Often the police or your local sheriffs office will be responsible for enforcing repossession. This is because a repossession is a mandated court order and legally enforceable through the financing paperwork the borrower signed when they got the vehicle. When the police repo a vehicle, they can only impound it for a limited time due to unavailability of storage space. So in order to create more room they hold police sponsored repo auctions.
Live Lender Repo Sales
Sometimes the lenders themselves hold their own event. The good part about these is they are often open to the public and you don’t need a dealers license to bid.
Online Reposession Auctions
The most popular form of these vents are held online. This is because the party auctioning the vehcile can reach the most amount of buyers and drive higher bids. There are some huge companies like Copart that specialize in repo events. To bid in most online repo auctions you need to register with the auctioning company. If you are a private buyer (as opposed to a dealer), you may not have access to bid on all the repos. The only way to be able to see and bid on all the vehicle is through a proxy bid that someone with a dealers license does on your behalf.
How to Find Repo Auctions Near Me
Buying repo vehicles directly or through auction is popular because you can get a vehicle well below the market value. The lender isn’t concerned about profit as much as there are as being made whole on the loan. With that being said, you don’t need to find a local auction to purchase a repossessed vehicle. You can actually but from a lender, repo vehicle seller, or even a used car dealer.
Today though we are focusing on repo auctions, so let me show you how I find repo auctions near me. The U.S. has tons of automobile auctions featuring cars, trucks, vans, to SUV’s. There are are repo auctions, police auctions, and salvage title auctions all which present opportunities to save money and get a vehicle at low cost.
Use Google Events Not Google Search
If you search for Repo auctions near me on Google, you will get a list of vehicle auctions, not all will have repossessed vehicles though. The trick is to use Google events to find repo auctions. Try Google Events here: Rep Auctions Near Me This Week
How Do Public Repo Auctions Near Me Work
Bidding on repossessed automobiles is experienced a little different by everyone. Sometimes you can strike gold, sometimes you get a vehicle with issues, and sometimes it feels like you have to drive across multiple states to get what you want.
These auctions work just like any auction in that the highest bid wins. That is true for both live and online events. When you bid on repossessed autos though, you should think through a few things…
Don’t Expect a New Vehicle and Expect Repairs.
While you can find new vehicles with clean titles that are in repo auctions, it doesn’t always mean good condition.Some of these vehicles may be sitting outside a long time before they see an auction. With repo events specifically you are likely to find rust, bald tires, dead batteries.
Leave Room for Unforeseen Costs
Now imagine you may find a repo vehicle with a salvage or rebuilt title or just repair issues in general. One of our first tips for auto auction bidding is to expect repair work. It could be minor stuff, but could be replacing 4 tires and dead battery to put you almost $1000 on top of your winning bid. Sometimes the costs are strange things like the car doesn;t come with keys. Now you need to get keys made for the vehicle. Before you start bidding on repos, you need to consider total cost not just the cost to win.
You Can’t Rely on a History Report to Determine a Solid Bid
When you go to a standard auto auction you can often look at the vehicle history. You can see the title changing ownership, service records, accident reports. With a repossession auction, you get none of that.
These reports at car auctions will help you frame your best bid. Without this information you must rely on doing a good inspection of the vehicle before you bid on it. This is why I prefer live repo auctions vs online ones. Once I can see a vehicle and evaluate the condition myself to come up with a bid I am comfortable with, I can decide if it’s worth it or to move on. These history reports help you do that.
Repo Auctions Near Me
Repo auctions present the best opportunity to get a vehicle well below market value. You must understand and know the risks though. This includes be prepared to do some work and making bidding decisions without all of the information. Finding local repossession auctions can be done with a simple Google Events search, but a majority of these events are now online. That makes it even harder to establish a bid when you can;t physically examine the vehicle. This is what I have learned from the repo auctions near me.