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SupraEnthusiast
02-16-2010, 12:57 AM
Hello everyone i was looking into purchasing a car from the repo auction. There is quite alot of them around calgary and the b.c area and i would just like to ask all the experts what i should be looking for. Also if it is even a good idea to go to these auctions.

Thanks,
Matt

canuckcarguy
02-16-2010, 01:20 AM
Many buyers are attracted to "distress" sales. In real estate, foreclosures, estate sales, etc, attract lots of attention. In cars, the buzz-words are repossessions, seizures, bankruptcies, estate sales, liquidations, etc.

Buying a repo at auction isn't much different than buying anything at auction. It's buyer-beware, so you better go in with a good understanding of mechanics and a sound knowledge of relevant pricing.

I always figure that if you're a retail buyer on a limited budget buying a single vehicle, then an auction might not be the best approach. Dealers who buy plenty of vehicles can go to an auction and make out okay - they can afford to pick up a few lemons, since they typically have the facility and the budget to fix problems, or have the option of simply re-selling these lemons at the next auction, and offsetting whatever losses they incur against the profit realized on their other purchases. The retail buyer doesn't typically share these advantages.

If you're a gambler by nature and you can afford to make a costly mistake, then hit the auction - you might score a deal and have a story to tell. But if money's tight or you don't know much about cars, best to stay away.

Remember that while it's certainly possible to get a great deal at an auction, there's also the reality that if you buy something, you've decided to pay more than every other person in the room. In a room full of experienced buyers, that might scare you a bit...

G-ZUS
02-16-2010, 09:52 AM
Originally posted by canuckcarguy
Many buyers are attracted to "distress" sales. In real estate, foreclosures, estate sales, etc, attract lots of attention. In cars, the buzz-words are repossessions, seizures, bankruptcies, estate sales, liquidations, etc.

Buying a repo at auction isn't much different than buying anything at auction. It's buyer-beware, so you better go in with a good understanding of mechanics and a sound knowledge of relevant pricing.

I always figure that if you're a retail buyer on a limited budget buying a single vehicle, then an auction might not be the best approach. Dealers who buy plenty of vehicles can go to an auction and make out okay - they can afford to pick up a few lemons, since they typically have the facility and the budget to fix problems, or have the option of simply re-selling these lemons at the next auction, and offsetting whatever losses they incur against the profit realized on their other purchases. The retail buyer doesn't typically share these advantages.

If you're a gambler by nature and you can afford to make a costly mistake, then hit the auction - you might score a deal and have a story to tell. But if money's tight or you don't know much about cars, best to stay away.

Remember that while it's certainly possible to get a great deal at an auction, there's also the reality that if you buy something, you've decided to pay more than every other person in the room. In a room full of experienced buyers, that might scare you a bit...

:werd: I bought a 94 Accord from the auction a while back, the whole front end was shot on it pretty much. The bank repo's don't even go for cheap. They all go for almost retail due to all the idiots who go now.

Zero102
02-17-2010, 12:05 PM
The way I see it is, I would prefer not to buy a car from somebody who was not able to pay to own the car, let alone maintain it. I stay the hell away from repo auctions.