“Cars do not respect the recession – they continue to wear out with use and as they age, they require more and more maintenance, even though the owner may have difficulty meeting these expenses and the need for a replacement car makes more sense with each passing day.
The problem lies in the fact that when even paying for car maintenance is hard, where does the large amount of money needed for a new car come from? The solution lies in the wholesale auto auction where, if you know what you are doing, great bargains can be found. While the cars for sale will not be new, it is often possible to pick up a car that is in excellent condition and will need little in the way of maintenance expenses at incredibly low prices.
A wholesale auto auction is conducted by a bank or finance company to sell off the vehicles that have been reclaimed due to the inability of the borrowers to repay their loans. But the repossessed cars will not repay the loan and the lenders need to sell off these cars to recover as much money as they can and they need to act quickly.
Everyday a loan is outstanding without the maximum possible recovery from selling the car is another day of loss for the lender. Additionally the lenders are incurring expenses for storing the cars and they know that the longer the cars remain unsold, the less will be their value and also that the vehicles will begin to deteriorate.
The lenders need to convert these cars into money to offset their losses and the quickest way to do this is by wholesale auto auctions. The key to succeeding at a wholesale auto auction is to understand that the lenders are in a rush to get back as much of their money as they can and will not hold back a car even if the last bid is far lower than the market value and that is why those who attend these auctions regularly keep their bids low knowing that if they miss out on one car, another will soon come along.
However, buying from a wholesale auto auction is not without dangers – keep in mind you are buying a used car with no warranties. People who are unable to repay their loans are often also unable to maintain their cars properly and while they may look good, their mechanical condition may be doubtful. If you are planning to buy from a wholesale auto auction, it is important that you check out the cars you are interested in completely before bidding on them.”