What kind of cars at repo auctions?

There are generally three kinds of cars at repossessed vehicle auctions.

Almost-new cars in new-perfect condition and with low mileage. The borrower may have just lost his job, had a divorce, or otherwise realized he couldn’t afford the car. Bargains can be found on vehicles on which the borrower had made a large down payment, took advantage of rebates, or traded another vehicle.

Late model cars in average condition and average miles. The borrower may have had serious financial troubles, or a bankruptcy, that made it impossible to keep her car. Many of these vehicles are available for less than market value, especially if the loan was near being paid off.

Older model cars in poor condition and high mileage. The borrower may have been financially challenged when he bought the car and things became worse, which caused multiple missed payments – which resulted in a repossession. Some of these cars may have hidden problems, which might be part of the reason for the borrower’s default. Such vehicles should be inspected by a mechanic, if possible, before purchase.