These aren't good economic times for many people and do you know what - there are always people who suffer financially no matter what state the economy is in. For example many business go broke at any time of the economic cycle. OK so you may be asking what has this got to do with getting banks repossessed cars and a good one at that - Cheap? Everything!
You see, particularly when a business goes broke their are creditors. These creditors include banks and the IRS which have to be paid. Now if there isn't the cash to pay, assets that used to form part of the business are then sold to cover the debts.
You are probably thinking surely most cars that are repossessed are in pretty bad shape - to be honest some are but many are near new and usually less than 3 years old.
The reason for this is that if a business has been run as a corporation it is likely that the managers/owners have been writing off their expenses against their profit and loss account to reduce their tax bill. What you also may not have known is that in certain States the age of the car can be no more than 5 years old to claim these expenses and furthermore most of the cars are under 3 years old!
What this means then, is if a business goes into bankruptcy it is likely that these ‘nearly new’ cars will have been repossessed by either the Government or the Bank which is owed the money.
When say for example a bank repossesses a car, it legally takes ownership of it, otherwise it could not sell on the vehicle with good title to a purchaser. If the bank has an outstanding debt against the car, the company has technically defaulted against the loan and the bank claims the ‘amount outstanding’ on the loan against its insurers.
So guess what? This means that the car is actually paid for and the bank now has an asset that it can sell to recover some of the debt it may have been exposed to in the bankruptcy of the business.
At this stage in the process the bank has two options. The first option is that a private individual or corporation can make what is termed a ‘reasonable offer’ on the car or as is more often the case it must put the car into an auction to get a ‘fair market’ price for the car.
Since there is no outstanding debt and the bank as the seller does not necessarily want to provide a guarantee with the vehicle they are often heavily discounted.
However don't expect to pay only $100's you will still pay good money for a car but estimates are that you will save at least 40% from a car lot and because it's been a bank repossessed car you will have at the least a clean CarFax report and if it's under 3 years old, potentially a manufacturers warranty.
I know what your next question is. “Where are these auctions at?" The good news is that there is a quick way for you to find the banks repossessed cars auctions in your area.
Joining a membership site will open the opportunity for you and furthermore you shouldn't have to pay more than $40: Here's an excellent review site for you to view CarAuctionsReviewed.Com