Before explaining further what repo cars for sale are, let’s talk about car values. From the moment you take a new vehicle out of the dealership’s showroom, it starts to loose value. And every year it will continue to do so until there is only a small residual value left that even a teenager without any job can shell out. Furthermore, the more mileage you do, the more wear the car suffers, the more it looses value.
In 3 years, an originally valued $30,000 car will have lost more than $13,000 on average, almost 50% of its value!
So to get more for a car for less money, you should consider smarter investment alternatives, like repo cars for sale. A “repo” car is simply a police, government agency or bank repossessed car.
Repo cars are put up for sale by these agencies once the previous owners couldn’t pay his monthly leasing or loan. For these agencies, as long as they have to stock and maintain the cars, they are a net liability, so it is in their best interest to get rid of them rapidly. That is why you will see bank repo cars for sale at car auctions, with starting bids as low as $100. Any sale price will be a profit for the bank or government agency.
That is where you can profit from repo cars for sale: find local government or bank auctions listing repo cars, check out those that have 1-3 year old vehicles of a brand and model that you are targeting, and drive out there on the day of the auction. You could either check out your local newspaper ads to find these auctions, or consult local banks or car financing companies. That might take you a while. A faster alternative would be to check out the online car auctions services.