Looking for a deal on a vehicle? Have you ever considered buying a repossessed vehicle but didn’t want to pay to locate repositories? This article will provide you with information on how to understand what a “repository” is, the benefits of purchasing one directly from the financial institution, and where you, as a consumer, can locate locally recovered vehicles.
1- Value:
Much has been said about buying repossessed vehicles. While most of it has focused on the great deals you get, it is important to understand what a “repository” 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 once repos, too. Most of the larger banks will submit their repos to “Dealer Only” auctions. Here the dealers will buy them in bulk, clean them, and then sell them to consumers for a commission. Once a distributor adds a commission or fees to the wholesale price, it is now a retail price and the term “repo” is inaccurate. Distributors may still call them “repos”, but in reality this is nothing more than a sales gimmick.
Many of the smaller credit unions operate only at lower volumes and do better by selling their repos to the public. They will usually post a link on their website that provides information about their current inventory. By skipping the dealer and buying directly from local credit unions, you avoid paying fees or commissions for a “repository” in good faith. Credit unions are eager to sell these vehicles and can make additional concessions that a dealer or other private party could not.
2- Trust:
There seems to be a stigma with the term “used car dealer”. Although most dealerships are honest, consumers become somewhat cautious when negotiating a vehicle purchase. Nobody wants buyers to regret it after finding out they were misled.
When you buy a repossessed car outright, you can be sure that you are not paying a sales commission or any hidden fees. Credit unions want nothing more than to maintain your trust. The motto of the Credit Union is; “Not for profit, not for charity, but for service purposes.” 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 on-site financing. 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 cannot.
Many Credit Unions that sell “repos” will even provide special financing terms as low as 0% financing. When buying these vehicles you can negotiate both the price and the financing conditions. If they can’t compromise on price, try asking for an interest rate reduction.
The next step is to start looking for a repository agreement. The RepoFinder website was designed and built 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.