Too good to be true? Repossessed cars at auctions

We are all taught to be careful when something sounds to good to be true. How is it possible to buy cars for less than $200 at car auctions? And what does repossessed cars really mean?

All car auction services do not work the same way. But a lot of them benefit from the fact that every day, all over the world cars get repossessed for a host of different reasons. The most obvious may be that the car is repossessed by the bank because the owner defaults on the car loan or lease payment. But there are of course other reasons.

Cars that are repossessed by institutions like banks, the police, the customs or the IRS are sometimes offered for sale at auctions. It used to be that car dealers with special licenses were the only ones that could buy repossessed cars at auctions. But nowadays, through online auction services, we - the public - are also invited to bid.

The constant influx of repossessed cars and the expense to store and manage them works for you. Repossessed cars tend to be "pridced to sell fast.

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