Finding a repossessed car involves knowing where these vehicles are sold, primarily through public auctions. Banks and credit unions want to recoup their losses quickly, so they sell these cars at significantly below-market prices. Your best starting points are online auction platforms, credit union and bank websites, and government-seized vehicle auctions.
The most common venues are online auction sites like Copart and IAAI (Insurance Auto Auctions). These platforms list thousands of repossessed cars from financial institutions nationwide. You can filter by location, make, model, and damage type. Many of these are "as-is" sales, meaning you typically cannot test drive the car, so a pre-purchase inspection is highly recommended.
Don't overlook local sources. Check the websites of regional banks and credit unions. Some sell their repossessed inventory directly to the public or through local auction houses they partner with. Additionally, the U.S. Treasury Department and other government agencies auction seized assets, including vehicles, on sites like GovSales.gov.
Here's a quick comparison of primary sourcing channels:
| Auction Channel | Typical Vehicle Condition | Average Price Discount vs. Market | Inspection Allowed? | Primary Payment Method | Buyer Fees |
|---|
| Online Auctions (e.g., Copart) | Varies widely; some with minor damage | 20% - 40% | Visual inspection only | Cashier's Check / Financing Pre-approval | Buyer's Premium (10-15%) |
| Bank/Credit Union Sales Lot | Often cleaned and reconditioned | 10% - 25% | Yes, sometimes test drives | Financing through the institution | Documentation Fee |
| Government Seized Auctions | Well-maintained but may have high mileage | 15% - 30% | Usually not | Certified Funds | Auction-Specific Fees |
| Local Public Auto Auctions | "As-Is," no warranties | 25% - 50% | Quick visual inspection only | Cash/Debit Card | Entry & Transaction Fees |
Before you bid, get a vehicle history report using the VIN. Set a strict budget that includes the auction fees, which can add 10-15% to the winning bid. Remember, these are not typical retail purchases, and the deals require due diligence.
