The allure of purchasing a car for as little as $100 at repossessed car auctions is a common claim, but is it actually possible? And if so, how can prospective buyers find these auctions? Repossessed cars primarily come from banks or financial institutions when owners default on their car loans or leases. These institutions, along with entities like the police, customs agencies, or the IRS, then offer these vehicles for sale at auction.
The surprisingly low prices of repossessed cars aren’t necessarily due to their condition or brand. Instead, the continuous supply and the storage costs associated with these vehicles often drive prices down significantly.
Given the potential for incredibly cheap cars, why aren’t more people buying at these auctions? Several factors contribute to this phenomenon. Firstly, there’s a general lack of awareness and information about these auctions, including schedules, locations, and which institutions regularly hold them.
Secondly, some believe that car dealers intentionally keep these auctions relatively secret. By purchasing cars at low prices and reselling them at retail value, dealers can generate substantial profits.
Finally, many car buyers are simply accustomed to buying new cars from dealerships and are hesitant to explore alternative options like auctions. However, with thorough research and preparation, it’s entirely possible to acquire a nearly new vehicle for a fraction of the cost, even under $200.