Looking for a deal on a vehicle? Have you ever considered buying a repossessed vehicle but didn’t want to pay to locate the repos? This article will provide you with information to understand what a “repo” is, the benefits of purchasing one directly from the financial institution, and where you, as a consumer, can locate repossessed vehicles locally.

1-Value:

Much has been said about the purchase of repossessed vehicles. While most of it has focused on the great deals you get, it’s important to understand what a “repo” is and why you get a better deal. Calling a car a “repo” doesn’t automatically make it a good deal. Many of the used cars you see at dealerships were also repos. Most of the larger banks will send their repos to “Dealer Only” auctions. Here, dealers will buy them in bulk, clean them, and then sell them to consumers for a commission. Once a dealer adds a commission or fees to the wholesale price, it is now a retail price and the term “repo” is inaccurate. Dealers may still call them “repos,” but this is really just a sales gimmick.

Many of the smaller credit unions deal only in lower volumes and do better selling their repos to the public. They will usually post a link on their website that provides information about their current inventory. By bypassing the dealer and buying directly from your local credit unions, you avoid paying fees or commissions for a bona fide “repo.” Credit unions are eager to sell these vehicles and can make additional concessions that a dealer or other private party would not be able to.

2-Confidence:

There seems to be a stigma attached to the term “used car dealer.” Although most dealers are honest, consumers are somewhat cautious when negotiating the purchase of a vehicle. No one wants buyers to have second thoughts after finding out they were scammed.

When you buy a repossessed car outright, you can be sure you’re not paying a sales commission or any hidden fees. Credit unions want nothing more than to retain your trust. The motto of the Credit Union is; “not for profit, not for charity, but for service.” Credit unions have no incentive to sell you a vehicle you don’t want.

3- Financing:

Credit unions are not car dealers, but they can still sell cars and provide financing on the spot. Perhaps the best advantage of buying from a Credit Union is the financing. Ask any car dealer about financing and they will most likely tell you that credit unions are the best. Credit unions can do things that larger banks can’t.

Many credit unions that sell “repos” will even offer special financing terms as low as 0% financing. When buying these vehicles, you can negotiate both the price and the financing conditions. If you can’t budget the price, try asking for an interest rate reduction.

The next step is to start looking for a repo deal. The RepoFinder website was designed and created with bargain seekers in mind. The website is 100% free and is the best place to start your repository search. RepoFinder connects you directly with lenders.