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Cars repossessed by a bank when the original owner missed payments make up repo cars. Purchasing a repo car can be one of the greatest deals of one’s life or a total disaster. The clear benefit of cost savings and uncertainty of the vehicle’s condition hang in balance. Let’s now see how viable is the proposition of investing one’s hard-earned money in such a car.
Cost-Saving You’d Find in Only Few Places
Buying a repo can save a buyer anywhere between 25 percent and 40 percent of a similar new car. Besides, the unknown condition, what make these cars filthy cheap is the banks and lenders are interested only in recovering their due money, not making a profit. Scott Ewart, a bailiff in Ontario said, “In their mind they’re not really selling a car. They’re selling an asset that belongs to the bank.”
Limitation Imposed on Vehicle Check
The biggest pain with buying a repo car is the limitation sellers impose on getting a handle on the condition of a car. When people buy a used car, they can always get a mechanic to check the vehicle on their behalf. One cannot do so with repos. It is worrying to know that the original owner who defaulted on his car payments might not necessarily be the type who took car maintenance seriously.
Risk Mitigation by Repo Cars Websites
Several websites specializing in repossessed cars in Ohio and surrounding areas put such cars online for sale. Many of these online dealers offer warranties on engines and vehicle reports on deficiencies to mitigate feelings of risks on the part of buyers. One can extend such warranties by up to 2 years with some additional fee.
Most repo cars are disposed of on a ‘buyer beware’ basis. That means the purchaser assumes the responsibility of discovering any defect or damage in the vehicle. That’s why a purchaser must know his way around a car and be willing to take a chance. George Iny, Director at Automobile Protection Agency, suggested, “When buying a repo, stick to vehicles that are less than 18 months old. The newer the car, the fewer problems it will have.” Repo cars are dicey but worth a try.