Car shopping for most people seems to be limited to two options. You can either work with a local car dealer who has sales quotas and commissions between you and your price, or you can take a chance with a private seller who might be a fly-by-night trying to get rid of a problem vehicle. Fortunately car buyers now have a third option that allows buyers an alternative to usual car shopping experience.
In every US state, banks and credit unions from time-to-time will repossess vehicles from non paying members. What many people don't know is that these lenders will then turn around and sell them right back to the public. Often times the banks will discreetly publish the repossessions for sale on their webpages.
There are many reasons to buy a repo vehicle from your credit union, but here are a few of the best:
#1- Repo's are priced to sell:
Repossessed cars have are priced to sell fast. Unlike a car dealer, when repo vehicles are purchased there is no commission built into the price. Credit unions and banks are not looking to earn a profit from the transaction, the majority of the time the bank will take a significant loss. When you're dealing with the lien holder directly there is a better chance of negotiating the rock bottom price.
#2- The banks and credit unions will provide financing:
Local banks have built a solid reputation in auto financing. Even if you were to buy from a private seller or dealer you will still probably end up at a local credit union applying for a loan anyway. Many credit unions offer special financing on repossession sales. Keep in mind that banks and credit unions can negotiate both the vehicles price and the interest rate. When low prices and low rates are combined you can always expect a good deal.
#3-Banks and credit unions are trustworthy:
Local banks and credit unions are built on a foundation of trust. Their reputation is on the line when they sell these vehicles, and they simply can't afford to put that at risk. You won't get any high pressure sales tactic to convince you to buy something you don’t want. It is important to remember that repossessions generally are sold as-is, so take time to inspect the vehicle.
Repo vehicles are very difficult to find, most banks tuck them away on their websites. A good place to start looking for bank or credit union repossessions is right in your home state. You can start by calling some credit unions in your neighborhood to inquire about current sales or use a list of bank and credit union's that sell repo's online. Be patient with the banks when you negotiate. They're bankers, not car salesmen. A little politeness goes a long way.
