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Where can you buy repossessed cars?
Here is a variety of advice:
- If I were you I would check out your county for repossessions to be sold they generally sale for 2/3 of the loan value.
- I would NOT buy a car that has been repoed. Simple logic tells me that the driver was NOT doing ANY repairs or even oil changes, before it got pulled away. In my years of experience doing vehicle repos, (yes I do know what I am talking about here) the number of outright clunkers was higher than 75 percent.
- Junk on wheels is what we used to call them. Run to death and barely able to be driven. Buyer beware is what I say.
- What if my truck worth 15k is repoed because I quit paying on the 20k loan. Then I buy it at auction because I know I took care of it? Heck, I could even dirty it up inside a little first so it will auction for less.
- It won't work. If it was repo'd by a buy-here-pay-here lot, they'll put it back on the lot and certainly aren't going to deal with you. If it was taken by a bank or manufacturer's finance company, it is going to a wholesale auction where you need a dealer's license to bid. Some smaller credit unions or finance companies will sell their repo's in their parking lot, but that's just like the BHPH place - they aren't going to talk to you. Besides, you STILL OWE the difference between the loan (plus repo fees) and what it brings. It's cheaper to make your payments.
- It's fine to buy a repo car if you take someone with you who knows a bit about cars. Where repo cars are sold is different from place to place. Try Googling your city and car auctions or else looking up auctions in the phone book.
- Call your local Credit Unions and ask them if they have any vehicles for sale. Most of them do these days. These are high quality cars for good prices and you are buying from a reliable source. Credit Unions will also give you good financing terms to get the cars off of their books. You could search online or just open the phone book and start calling.
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About two months after one stops paying for the vehicle.
The biggest turn-off when buying Repossessed Car: As you already know, Repossessed Car Auction is a great way to buy your new car or other types of vehicle (boat repo auction…, RV repo auction, ...); however, it seems almost too good to be true, because the price is very low. The catch lies in the fact that Repossessed Cars were taken from their previous owners by the government, so they are basically used cars. Therefore, you must take all the steps necessary to find out about the history or the damages of the repossessed car yourself. Why you should still go for Repossessed Car: The easiest answer is: because it is very cheap. Normally, you can find one at as low as $200. Furthermore, even though repossessed cars have been used, they were taken away because their owners couldn't pay the bills, not because they were damaged or got into accidents. Thus, most of the times you will find very good repossessed cars that are perfectly normal and usable. Still, remember to check its history and VIN number! Also, remember to visit websites like www.vehicleshq.com to prepare your knowledge before going to a real repossessed car auction.
Repossessed cars can be purchased directly from Banks and Credit Unions. Many larger Banks and Credit Unions will simply send the vehicles off to "dealer only" auctions, but m…ost of the smaller Banks and Credit Unions will offer these vehicles for sale on their websites to the general public. If you view the "related links" section on this page there is a website which is a free repo finder tool that lists direct links to Credit Union repossession across America. You can browse local repossessions in your area and then contact the individual Banks and Credit Unions about purchasing the vehicles.
It can be reposesed the moment you miss any payment... even if only a day or two late. In practice, debtors look to your overall payment and credit history and to whether or n…ot you have been creditworthy with them so far, and they usually resort to letter and phone calls to elecit the owed monies. In point of fact, thay would much rather have your payment than the car itself. However, if you have a bad credit history and a bad payment history, they are well within their rights under your finance agreement to pick up the car at their earliest convenience. If your missed payment is due on the 15th, they "could" pick up your car on the 16th. Again, and in practice even with the poorest payment history or credit history, they usually give a few days "grace" period to allow a tardy payment to show up in the mails or to allow a late payment to be hand delivered. But they do not have to. Your late payment breaches your contract and they are well within their rights to repo right away. Consumer Rights in Auto Repossessions Before a lender can repossess your car you must have used your car as collateral for the loan and you must have defaulted on your contract with the lender. Usually, when you borrow money to buy a car, you have to use the car as collateral. If you do so and get behind on your payments, your contract will say that you have defaulted and your car may be repossessed. Although your contract with the lender governs the default and the repossession, you still have certain rights under state and federal law. First, read your contract carefully, especially the part that talks about default. Usually, default is defined as the failure to make a payment when it is due, but many contracts also say that other things may be a default. The most common of these things are: taking the car out of state permanently without permission from the lender, or failing to keep insurance on the car, or damaging the car so that its value is reduced. Before the contract can be declared in default for not making your payment on time, you must be at least ten days late and the lender must send you a "Notice of Right to Cure" the default. This Notice gives you 20 days to catch up your payments. If you do bring the payments up to date, the default has been cured, and you can continue making regular monthly payments. You only have the right to get one "Notice of Right to Cure" for the entire term of the contract. So, if you get behind in payments again, the lender does not have to send you another "Notice of Right to Cure." If you do not bring your payments up to date after you have received the "Notice of Right to Cure," the lender can repossess your car. The lender can repossess the car in either of two ways: by using self-help or by filing a Claim and Delivery lawsuit. If the contract says that the lender can use self-help to repossess the car, he can tow your car from your driveway, the street or your place of work. The law allows the lender to use self-help in repossessing your car, but the law does require that the self-help be peaceful. If you see someone from the lender hooking up your car to tow it away, you can tell the repossession people to stop. When you tell them to stop, any further attempt to tow the car is not peaceful. If the repossession continues, the repossession people risk liability for wrongful repossession. Besides self-help, the lender can bring a claim and delivery lawsuit to repossess your car. Usually, the lender cannot repossess your car under a claim and delivery lawsuit until the papers are served on you. Also, you usually have a right to a hearing in court before your car is repossessed. However, if the lender has a good reason to believe that you may destroy or hide the car, he can get the judge to allow immediate repossession whether the papers have been served or not. If your car has already been repossessed, the lender must send you a notice of your Right to Redeem the car and a notice of what the lender intends to do with your car. Both notices usually are included in one letter. Although you have a right to redeem your car from the lender, he can require that you pay off the entire balance of the loan, plus any costs for repossessing your car. Usually you only have about ten days to two weeks to arrange to pay off the car. If you cannot do this, the lender can sell the car and apply the money to your loan. In the notice of what the lender intends to do with your car, the lender tells you that the car will be sold at private or public sale or that the car will be kept as full payment of the loan. If you have paid 60% of the original loan amount, you have a right to make the lender sell the car within 90 days of the repossession. This is important when you have nearly paid off the car before the repossession because if the lender sells the car, he must use the money received to pay costs of the sale and to pay off the loan. Anything left over must be paid to you. If your car has been repossessed when the loan is still rather new, sale of the repossessed car may not bring enough money to pay off the loan. The money that is still owed on the contract is called a deficiency balance. A lender can sue you for the amount of the deficiency balance. If the lender sues you for a deficiency balance, he may also be able to require you to pay attorney's fees, repossession costs, repair or clean-up costs, and court costs. If the lender gets a judgment against you for the deficiency balance, the judgment will appear on your credit to pay off the deficiency judgment. If a claim and deliver or a deficiency action is brought against you, you may be able to raise certain defenses. These defenses include the failure of the lender to give you one of the required Notices, the failure of the lender to sell the car in a commercially reasonable manner, or even a breach of warranty by the manufacturer or seller in some cases. If you do not have one of these defenses, you may still be able to file bankruptcy and keep your car until the bankruptcy court says otherwise. Even if you file bankruptcy, in order to keep the car, you must pay for it. Also if you pay every payment and you get to your last payment and you don't pay it then they can reposess it
When is the best time to buy a car? In summary the best time to buy or trade in a car will be as below: End of Year End of Month Monday to Friday
Answer Firstly, in a legal sense, the lending institution owns the car, you are just the registered owner on the title - you promised to make timely payments to …the lender in writing. Repossession occurs for one main reason - the agreed upon payments were not made by the purchaser at the interval specified in the loan agreement. The lending institution who initally granted the loan to you has the title in their files - they own the car, and will continue to own it until they are repaid in full for the monies they gave to the dealership or whomever the car was bought from. There is little recourse - the lending agency, who owns the car anyway, is just taking back their property and will attempt to resell it to recoup their losses. You may try talking to the lending institution and possibly by making up all back payments and signing another loan agreement, with a higher interest rate because you are now an 'at risk' borrower, you might be able to drive that car again.
Car Repossession 101 Note: Do whatever you have to do to avoid your car being repossessed selling the car yourself, or if you need it, pawning possessions, getting loans from …family, or getting multiple payday loans (if you have a steady job, you can get one from each different company in your town regardless of your credit). Lenders can be pretty merciless after repossession. Your Rights After repossession understand that the only "right" you have is the right of redemption. Meaning you have the option of immediately paying all back payment, late fees AND the full balance of the loan plus repo fees, and any other fees they add, getting your car back, and saying "so long" to the lender. However, if you could afford this you wouldn't have gotten behind on your payments so, more than likely, you will be seeking a reinstatement of your loan, since as far as the lender is concerned your loan is over (you defaulted). Reinstatement is only a "right" in a few states. In most states, such as Colorado, this is solely at the discretion of the lender. IF YOU DO NOTHING Some people think because the lender takes the car they no longer owe or have to pay. WRONG! You didn't borrow a car you borrowed money and the loan was "secured" by the vehicle. Two facts that seem illogical and surprise people The lender will sell your car quickly, probably at an auction open to car dealers only, for much less than it is worth, less than you could have gotten for it, and almost always less than what you owe (balance of loan plus all the fees).The lender will come after you for whatever is owed on the loan and fees after the car sale --no matter how small the balance. Think wage garnishment. WHAT TO DO If you need your car and can't afford to pay off the entire loan then you must act quickly and remember you are now at everyone else's mercy (lender, repo company) so be humble. 1.Confirm your car has been repossessedCall the police non-emergency number in jurisdiction where car is registered, tell them you think your vehicle has been repossessed and give license plate number. Most states require repo companies to report the cars they've repo'ed to the police within an hour after seizure. If it has been reported, the police will give you the name and phone number of the repo company (usually not the address). Do this even if even if you've already gotten repo confirmation and a phone number from your lender. Lenders deal with big national repo companies that farm work out to local repo/towing businesses. You may get one name and a toll-free number from the lender but a different name and a local number from the police. Local numbers are easier to Google and hopefully you can find out where your car is and how easy or hard it will be for you to get to. You may be surprised to find the lot is a long way away or in walking distance from your house. 2. Do not attempt to pay your outstanding balance the way you normally do by internet or electronic funds transfer it's too late for that. All monies paid going forward must be paid in cash. 3. Call your lender (have a fax number ready and know your monthly gross and net incomes) Have a reason why you fell behind like a temporary loss of pay due to prolonged illness, but do not say someone lied to you, or you weren't notified etc. (now's not the time). Say an emergency kept you from honoring your payment arrangement or say you didn't realize the payment hadn't cleared, whatever just keep it simple.If Chase Auto Finance (CAF) is your lender they will forward you to the redemptions department (a.k.a. recovery unit) at 888-895-1728. Their business hours are until 6 PM (Eastern) and they're closed Weekends, so if your car is taken on Friday afternoon you will not get it back under any circumstances before Monday.Find out what the requirements are for reinstatement. CAF requires payment of any late payment and late fees and repo fee ($300-$400); a copy of the binder or disclosure page(s) of your auto insurance policy showing you have full coverage and showing Chase as the lien holder (they do not accept insurance ID cards for this purpose); two most recent pay stubs; and a filled-out Customer Information sheet that askes for name address, phone #, and relationship for 4 references (none may live with you-2 family members and 2 not). CAF will fax the blank reference sheet to you, and all documents must be faxed tback to them at 813-217-9643. They use an e-fax system so whatever agents you speak with throughout the process will be able to see what documents have been faxed. 4. Find out the total of all payments, fees, and charges the lender requires and ask them what the fees of the repo company are likely to be. You will have to deal with the repo company and their fees separately, but you can get an idea from the lender. 5. Make a case for reinstatementInclude a cover letter with your faxed documents letting the lender know why they should expect you to make payments on time when you did not do it before. Keep it short but demonstrate 1) that you have the ability to pay the loan (steady income, new job, end of crisis that caused delinquency) and 2) things will be different going forward. Tell them you're getting debt counseling, you are setting up direct payment, you have a part-time job, etc.Many pay stubs/statements are confusing. Some show allotments to savings accounts as deductions from your gross and not part of your net pay. Make sure to point out what your monthly gross income (full pay) and net income (amount you take home after taxes and deductions) are. If you get paid bi-weekly (every two weeks) don't assume the lender agent making the decision about your reinstatement will realize this when looking at your pay statement and do the necessary multiplication. Write out your monthly gross and net income on each pay statement and include it in your cover letter requesting reinstatement. The person you deal with on the phone at this point is likely the one making the decision. If your lender agrees to reinstate your loan 1. Get all of the money for back payment and fees Don't trust any payment arrangement you can't get in writing. You also will have a hard time getting the same person on the phone ever again, so the only way to ensure reinstatement and ensure your car is not sold at auction is to try and pay everything at once. If you absolutely cannot get all the money you owe within 10 days (the time in most states before your vehicle is sold at auction) try to make arrengements using an employee of your bank or credit union branch as a go-between (see below).CAF requires cash payments at a Chase Bank branch but be sure to keep your receipts because your Chase auto loan account no longer exists on the branches computer system or on the system you have internet access to. You will have to read the branch #, transaction #, session #, and teller name off the receipt to the recovery unit agent THEN they will have to call the branch to confirm your payment. OR the best way to handle this is to go in the branch and ask to speak with a "personal banker" (the people at the desks to the side). Explain your situation and that you want to do everything correctly to get your car back. Ask them to call the Recovery Unit and ask how much you owe. Let the banker take your payment behind the counter and get a receipt. Then have the banker call the Recovery Unit back to confirm the payment while you're sitting there. Politely ask the agent if they will be notifying the repo company of the release right away because you are getting a ride out to the repo lot and want to make sure you'll be able to get your car before close of business and won't be stranded. 2. Find out how much the repo company will charge you. Charges may include a cleaning/administration fee ($40-$80), one-time item storage fee ($10-$30), daily vehicle storage fee ($15-30 per day). Plan to pay them in cash and have exact change (this is usually a tow lot). If you can't get your car right away call the repo company and make an appointment to get your things (yes they will require an appointment and don't be late). They may not tell you where they're located until you make an appointment. Once you've been reinstated and paid the lender The lender must send a release to the repossession company. Often the lender contacts the headquarters or parent company of the repo/towing company that has your vehicle. The repo/towing company will not release your vehicle to you until they get the release from their HQ or parent company. They don't answer to your lender, only their HQ or parent company. Even though you've paid the lender, getting your car back depends on: 1. lender sending release notice to repossession company 2. Reposession company processing release in their system and notifying the repo/towing company that has your car 3. Paying the repo/towing company's fees in cash, in full. Once you've paid, as long as it is not the end of the business day, your car could be released in as quickly as an hour, but you should count on 1 1/2 to 2 hours. Ask the repo/towing company if they will please call you when they receive the release. GOOD LUCK!
It depends, but as a general rule, the finance company that repossed it will keep possession of it, either on their own lot or at an auto auction for a certain number of days …(usually 30-60) unless you pay the balance to get it back. After that, they will send sell it at auction and you will owe any deficiency balance. In other words, if the balance on the car is $7000 and it sells at auction for $5000, you will still owe $2000 to the finance company.
Buy here pay here lots make the decisions themselves to sell you a car or not. They typically base this on a number of factors not over looking their gut instinct. The only wa…y you will know if a particular lot will sell you a car is to contact them and ask.
It may vary by state, but car repo (snatch and run) is against the law in Louisiana. If the repo man shows up wanting you to sign some papers, and has a cop sitting clos…e by, don't worry. By law, if you don't sign that piece of paper, they cannot take your car. (The cop and repo guy are friends, or just got a kick back.) But it's easier to do that than go to court and end up paying the court fees also.
Answer Mike, that depends on how great your credit is. A repo on your record is NOT going to help. Any interest rate you get will be HIGH because of your credit rati…ng. With a decent down payment you can always get a ride at a buy-here-pay-here car lot. Good Luck
Nancy, you can buy one as soon as you find someone to finance you. You will probably pay a higher interest rate and need a bigger down payment,but the choice is yours. Good Lu…ck
If you are trying to buy a specific car, you can contact the bank or whoever holds the lien on the vehicle for more information. You may also start online with a free dire…ctory search for banks and other financial institutions who are selling repossessed cars. There are also other alternatives. You can go to either offline or online public auctions. Even though these auctions are attended by a high number of car dealers, you can still find very good deals, particularly since you're buying for yourself ( not to resell afterwards ). Besides public auctions, you might also consider government car auctions. They're repossessed auctions where a government contract was involved in the original purchase. They're pretty safe environments and you can save up to 90% or more by attending the right auction. Just find as many as you can in your area ( so that you increase your chances of finding one with few other bidders ) and familiarize yourself with the local rules and codes. Before bidding, always have the vehicle inspected by a mechanic and get a vehic
No. Unless you go to one of the dealers that offer a little box on the dash board that requires payment to run. Total rip off. A repossessed vehicle will stay on your cr…edit record for 7 years. Due the recent economy no one will get you a new car loan or lease. Your best bet is save mnoney and pay cash for a used vehicle.
Answer Any one on the title or that has a contract.
You can buy a car right after your car has been repossessed. It will however, depend on whether your credit is stable enough to qualify or if you have the cash to pay out …of pocket.
you can buy it back from the repossess depot thinger yeah but you have to pay all your payments on it The above answer is correct, but does not answer the question actually b…eing asked; i.e., the guy/gal wants to go grab the car from the repo guy or car lot where the repo was delivered to. My answer is YOU BETTER NOT TRY. That would be auto theft, grand larceny or theft over x hundred dollars. Why? Because you do not own the vehicle. Your grab-it and run plan would be the same as taking any car parked on the street.