How to Buy Bank Repo Autos

Buying a bank repo is a way to possibly save some money on the purchase of a used auto. Banks repossess vehicles from borrowers who are unable to make the loan payments on time. The bank has to sell the repossession in order to avoid taking a total loss on the loan.

1. Call a bank in your area to find out if there are any auto repossessions available to buy. Speak with the bank’s repo manager and ask for a list of vehicles that are for sale in your price range. If you want to look at one of the repos, make an appointment with the repo manager.  


2. Go online to check the value of the repo you want to buy. Type “used car price guide” in a search engine. Go to one of the websites in the search results and look for the vehicle in the used car section. Print the pricing report and keep it with you to use as a guide when you negotiate the sales price on the repo.


3. Inspect the auto repossession that you want to buy. Ask the repo manager if the vehicle needs any maintenance. Take the repo for a test drive to see if you like the way it handles. Open the hood and check the engine for signs of neglect. Go over the interior of the car to make sure the upholstery does not need repairing.


4. Ask the repo manager how much the bank wants for the vehicle. Review the pricing report to compare the different values with the bank’s asking price. Make the repo manager an offer that is near the lowest value on the report.


5. Negotiate the price if the repo manager makes you a counteroffer. Review the pricing report to determine the maximum that you want to pay. Make the repo manager a second offer and continue to negotiate until you finalize the sales price. Write a check to pay for the repo or obtain a loan from the bank to finance the purchase.