So you are looking for a car or truck, but you're tired of
running around town and finding other people selling their
"headaches" through the local classifieds, or dealers offering
"cream-puffs" for inflated retail prices. All you want is a good
vehicle for a good price. Period. Does such a deal exist? Yes,
indeed! Repossession auctions are becoming more and more popular
across the country. I have been attending them for over 20 years,
and have purchased many cars and trucks at bargain prices -
everything from a brand new car (still with the window sticker on
it and 3 miles on the odometer) for $1,100 below the sticker
price, to a conversion van with 99,000 miles on it. Both of these
vehicles are still in the family and running strong.

1. What I'd like to do here is share my experiences with you, and
give you some tips on how you, too, can find these bargains.

First of all, how do you find the auctions? Your local paper is a
good place to start. Many banks and other financial institutions
(such as GMAC) list the times and places of their auctions in
Sunday papers under "Auctions" or "Cars for Sale". Also, if there
is a "legal publication" in your area, that publishes court
proceedings, bankruptcy notices, etc., this is another source for
repossession auto auction notifications. One other way to find
them is to call your local banks and ask for the Installment Loan
Department. They should be able to provide you with details on
their particular auctions. Many even have regular mailing lists,
where they will automatically send you a notification of their
auction and even a listing of what vehicles will be included.
While some institutions restrict their auctions to dealers only,
most will allow the public to attend and bid. Once you have found
an auction, be sure to get all the details BEFORE you go. You'll
need to know if there are any minimum bid requirements, what type
of payment they need, and what type of paperwork they provide to
the purchasers. Many auctions will sell everything to the highest
bidder, no matter how low the bid is. Still others may have a
minimum bid they must get, or they "buy back" the car and save it
for the next auction. Most institutions retain the right to bid,
so be aware that you may be not only be bidding against other
people interested in the vehicle, but also against the
auctioneer!

While most auctions will publish their requirements for payment
along with the auction notification, DON'T assume that that's all
there is to it. Find out if they expect cash only, certified
checks or personal checks. Also, many require full payment
immediately after the sale, while others may require a
non-refundable deposit with the balance due in a few days. All
too often I have seen people make costly errors at auctions
because they didn't understand these payment rules.

In this day and age of red tape, titles, liens, etc., the
paperwork an institution provides is as important as anything
else. In New York State, for example, if the institution sells
the vehicle with "as-is" marked on the bill of sale, you may
encounter a legal nightmare that involves a major full-vehicle
inspection and an 8 to 10 week wait for a title search and
registration procedure that will prevent you from putting the
vehicle on the road for months. It is imperative, therefore, that
you find out specifically what paperwork the institution will
give you when you purchase a vehicle through their auction. If
you plan on registering the car right away, tell them that and
make sure you are satisfied that they will give you what you
need. If in doubt, contact your local Motor Vehicle office ahead
of time to insure that you'll be able to proceed with what the
institution will be giving you. Laws vary dramatically from state
to state. Above all, make sure that all liens have been satisfied
before you purchase a repossessed vehicle. Most banks and
financial institutions will give you some type of form to verify
this.

OK... now you've found the auction and understand the rules and
requirements. The next step is finding the vehicle that fits your
needs. In order to know what the vehicle's value is before you
bid on it, you'll need a good resource of wholesale and retail
pricing. One good source is the NADA "Blue Book". This book lists
cars and light trucks by manufacturer and body style, giving you
the current average wholesale and retail for each. I have used a
book called "Edmund's Used Car Prices" for the past 15 years or
so, and found them to be a very reliable source. Like the NADA
book, it lists the cars and light trucks by manufacturer and year
(usually the past 7 model years), and provides the vehicle's
original list price, current average wholesale and retail. It
also provides you with a list of popular options, and what they
add to the value of the car or truck. There's plenty of details
in the book which I won't go into here. Just make sure you read
the "How to Use This Book" section thoroughly before you start
using it. Options such as air conditioning, power steering and
brakes and type of transmission may dramatically affect the value
of the vehicle. Also, excessive mileage for that particular year
car or truck will affect the value. So, read the book and know
how to use it BEFORE you get to the auction.

Visit my site at www.helpmebuyacar.bravehost.com

My name is Thomas Miller, I'm student here in Detroit, MI. I love
to do research, I love to write and most of all I cars.