Repossessed Car Auctions: What Is All The Hype About?
There are a large number of options for individuals looking for deals on cars nowadays. Finding repossessed car auctions can allow you an opportunity to save a lot of money on a newer model vehicle that is in terrific form. Many of the cars at these auctions have been handed in by their owners due to a monetary setback or serious incident that has made it impossible for them to make their vehicle payments.
Previously a person attending a car auction would be restricted on the number of vehicles that were available. Nowadays, however, cars of all makes, models, and conditions are coming to the auction meant for individuals with the money to buy them. The auctions have developed in popularity and are nowadays being held in many locations for people wanting to attend.
Banks, credit unions, and lenders repossess cars when the owners are unable to meet their payments. In many cases the cars are recent model cars that have not been driven over a few thousand miles. The lenders have got to recoup as much money on the loan as possible and have discovered that the fastest manner in which to achieve this is by means of auctioning the car off.
Before the financial slump a large number of people were purchasing new cars on a regular basis. As soon as a new trend car was introduced to the market, people in particular cliches had to acquire the car. Even though the payments were very high, they felt positive that they could make the payment. After the economy tanked a large number of these same people found themselves making a great deal less money than before and the soaring vehicle loan could not be paid. Instead of driving the vehicle, a lot of these people gave their vehicles back to the lender. These cars are in flawless shape, possess little if any wear, and have very low mileage.
Other people had their vehicles for a longer period of time and may have driven on a few trips before they experienced economic setbacks that made paying their loan payment impossible. These vehicles are newer model vehicles in normal condition and with average mileage.
From time to time, when a person receives a personal loan from a banking institution, credit union, or lender, they will use their vehicle as collateral on the loan. When they cannot make the payments, their vehicle is repossessed. These vehicles are usually older, have high mileage, and have some issues because of their age and use.
Various car auctions will have a few hundred cars whereas others will have several thousand vehicles. As soon as you decide what kind of car you are interested in, you are able to visit early and check the vehicles that are that specific make and model. Starting the engine and checking the vehicle for damage will be extremely favorable before you make a decision to bid on a vehicle.
Vehicles sold at the auctions are sold "as is." A few auctions give a 90 day warranty but this is uncommon. When purchasing a car at an auction it is crucial to bear in mind that if there is damage or repairs needed, you will need to take care of that yourself. After winning a bid you will need to arrange for cash or financing available to pay for the car. Many auctions will take cash, a certified check, otherwise in place financing. They will not take credit cards.
By taking some time to get a hold of information on the cars history and value you will have a better sense of how much to bid on the vehicle. In some cases a lender will want the bidding to start out high on a vehicle. Nevertheless, the lender will consider less if the bid drops. When a person is organized and knows what they would like, they can often save forty to sixty percent on a vehicle when purchasing from repossessed car auctions.
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What You Should Avoid When Buying A Used Car
With today's economy it makes sense to buy used car verses buying a new car. For starters can you afford to buy a new car or lease a new car? If you can afford a monthly payment of four hundred dollars then you probably can find a nice new car that you will like. But if that is too expensive for the new car smell for these days then you will have many options in a used car.
Also, if you are thinking about value appreciation, forget about a new car. It will shrink if value by about thirty percent once you drive it off the lot. Of course you will still be responsible for one hundred percent of the agreed upon price.
Auto insurance is also higher with a new car compared to a used car. Also, many used cars still are under the manufacturer's warranty. You will find most American cars have a 12 thousand or 36 month warranty.
So if you find a used car in this range you will be able to have the basic parts covered as well with the labor costs. If you buy your used car from a dealer and the salesman offers to sell you an extended warranty give this some thought. If he offers to make it part of your financing realize that you will pay interest on the extended warranty based on the interest you are paying for the auto loan if you are financing the purchase of your car.
If your car has a good to excellent track record as far as repairs go, you might not need the extended warranty. But before you skip the extended warranty make sure you car does not have a history of breakdowns that an extended warranty will cover. If you buy from a private party, make sure to have an independent licensed auto mechanic inspect it.
One area that is hard to find a problem with is the constant velocity boots or CV boots. The front tires have to be removed to see if they need replacing. The boots are rubber cylinder covers that go over the axle. They are subjected to oil lubrication and can develop pits and holes. Once they develop a hole your front end will wobble when breaking at high speeds like when getting off on a freeway off ramp.
The actual boot is not too expensive but the labor cost can run about three hundred dollars per boot because of the time to replace them. CV boots are one example of the expense you can incur if you do not take the time to completely check out a used car before buying it.
Remember in most jurisdictions when you buy a used car you are buying it as is. This means you have no legal recourse if something goes wrong after you buy it. A new car might not be in your budget but know how to buy used car to make sure you are not sorry later.
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Best and Worst Times of the Year to Buy Used Cars
There are many things to consider when buying a used car. The make, model, year, condition of the car, repair history, and mileage, are all important factors to consider, however, there are certain times of the year when it is beneficial to buy a used car. When buying a used car, it is important to be aware of these times of the year.
Below are some ways to determine when it is the best and worst times of the year to buy used cars:
Days When There is Bad Weather: If it is rainy or snow out, most people would rather stay inside than spend time at a used car parking lot. When the lot is empty, sales people are more likely to give a better deal in order to make a sale that day. Just tell the salesperson that you had nothing to do that day so you thought you would do some vehicle browsing. During days where the weather is fine, you are likely to see more people shopping for a used car so deals will not be as lucrative.
Winter Time: If you live in an area that is cold and has bad winter storms, most people tend to stay indoors much of the time and used car shopping is not usually a priority. This can be a good time to get a discount or rebate on a used car. Spring time is not a great time to shop for a used car as many people are getting out more and there are more car shoppers.
Vehicle Shop during the Holidays: During the holidays, many people have added expenses so they are less likely to go out and buy a used car. Car dealers want to try to keep sales up so they are likely to give a discount on a used car deal. Make sure you don't appear desperate for a car.
Vehicle Shopping at the End of the Month: In most used car dealerships, they institute a monthly quota for vehicle sales. Sales people will be more apt to make a deal at the end of the moth to fill the quota. They will likely give a discount, but get it back with their quota bonus.
End of the Model Year: When the next year models start to come out, discounts and great financing deals can be obtained on the previous year's model. There are often lucrative cash rebates and other incentives.
Vehicle Life Ending: When a vehicle manufacturer discontinues producing a particular model of car, dealerships will offer a substantial discount on that model of car. It will depreciate a lot; however, you will get a great deal. As well, manufacturers often change the design of a particular vehicle model, so one can often get a great deal on the old design model.
Everyone looks for deals, rebates, and incentives, when shopping for . It is important to do your research about the particular car you are interested in. As well, make sure you are working with a flexible car sales person. Factoring in the best time to buy a used car will go a long way in getting a car and a great price. The reward will be driving away with a great used car at a great price.
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What are the Best Rated Used Cars?
The reputation of the used car industry has come a long way. In the past, the perception was that buying a used car meant dealing with unscrupulous persons only too willing to take advantage of you. With the advent of companies like Carfax and the increasing reliability of cars, this is hardly the case these days. Still, not all used cars are created equal. Some cars have developed a reputation for reliability regardless of age, which makes them good choices for used car buyers. No list of top rated used cars can ever be considered complete. As car companies come out with sturdier, more fuel efficient models, rankings are likely to change.
Best Rated Used Cars
Ranking can be difficult as it is rare that one car has all the attributes that make it a good buy. Some cars are more fuel efficient than others while some are known for their reliability and good resale value. Assessing used cars is best done based on certain criteria. The ultimate decision rests on what is important to the used car buyer.
Fuel Efficiency
The best used cars based on fuel efficiency for under $10,000 include:
- Toyota Prius (2001 - 2003) - Toyota Echo (2000 2005) - Acura Integra LS (1999 - 2001) - Scion xA (2004 - 2005) - Hyundai Accent GS (2007) - Honda Insight (2000)
Those in the same category for under $20,000 include:
- Honda Fit (2007 - 2008) - Scion xD (2008) - Honda Civic Hybrid (2004 - 2005) - Toyota Prius (2004 - 2007) - Nissan Altima Hybrid (2007 - 2008)
Reliability
Some cars have become popular with the public for their overall reliability and good performance. Some of the top rated ones according to Consumer Reports are:
- Toyota Corolla - Toyota Echo - Toyota Matrix - Scion xB - Pontiac Vibe - Honda Civic - Mazda3 - Subaru Impreza - Mercury Milan - Toyota Prius - Ford Fusion - Nissan Altima - Toyota Avalon - Acura TSX - Volvo S60
Highly ranked SUVs and trucks include:
- Honda CRV - Toyota RAV4 - Toyota Highlander - Infiniti FX35 - Lexus GX - Hyundai Santa Fe - Toyota Tundra - Honda Ridgeline
Naturally the choice of a used car is heavily dependent on one's budget. These lists are not set in stone as other variables come into play. These ratings are related to how the vehicles were used by their respective owners and the prevailing road conditions in each state. Even a car that sits at the top of the ranking can perform poorly as a used car if it is not properly maintained and handled recklessly.
Given the unpredictability of gas prices, many buyers are likely to opt for fuel efficient models. Reliability and safety should not be overlooked, however, some used car dealers offer their own rankings of used cars based on their years of experience in the industry. Keep in mind that lists by independent bodies like Consumer Reports are updated every year. Searching for good value is important, but finding the best rated used cars requires research and patience.
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