“Auto auctions are such a popular concept these days. At a car auction you can get a car at half its actual value. Shopping at an auto auction can help you save hundreds, even thousands of dollars if you shop carefully and know what you’re doing. One of the most important things to realize is that there are different formats of auto auctions, one being the bank auto auction.
A bank auto auction is an auction at which offered are recent reposed bank and credit union cars. These cars are repossessed from people who went through the bank to purchase a vehicle and who then did not make their payments on time or stopped paying altogether.
The bank allows a certain amount of time before going ahead and repossessing the car which they then take and sell off at auction to get their money back. Because banks are so well off financially they don’t mind not getting the full price for vehicles, which is how you’re able to get such a great deal.
They don’t make all of their money back, but their point is just to get rid of it and get at least a bit of its value. In some cases you can get a practically brand new car for half of what it’s worth if this car was repossessed from a buyer. Just remember that there are a lot of scams that you’ll have to watch out for. Do some research on the bank and as long as it’s a legitimate financial institution you can pretty much feel safe buying a car through it.
There are a few safe steps to separate the good from the bad when dealing with bank auto auctions. You should be checking under the hood to see that the engine and other parts are in good working condition, and get down to look under the car to check for holes and leaks. It’s so important to be a smart and informed buyer. With auto auctions, the rule is that you are buying “as is”, so if you purchase a car only to find out after that you made a bad deal, it’s your problem and they aren’t going to refund your money.
Even if a car is in pretty rough shape it may still be worth it, depending on the asking price. At some bank auto auctions you are able to negotiate and get them to drop the price even further. Then you will know more about what to look for and what the cars are worth. Just be sure that you get the Manufacturer’s Warranty when buying any later model vehicles.”