Recently there has been a growing number of used car repo deals found in Hartford, CT. While this is unfortunate for those who could not afford their previous loans, it means that people looking for a great deal can find one. Some people are unsure about whether or not buying a repo car is a good idea or not. To give you a better idea about whether or not this could be a viable option for your used car needs, here is a quick overview of the entire repossession process and why it creates so many deals.
The repossession process begins when an individual stops making payments on a vehicle loan. The loan could be on either a new or used car. The lending institution will then contract a repossession company to locate and reclaim the vehicle for them. In most cases, this takes very little time.
Once the car has been repossessed, there is normally a certain amount of time allotted to the previous owner in which they can either restructure their loan to compensate for the delinquent payments or they can pay the overdue balance all at once. Either way, if they previous owner can make these payments, they will get the vehicle back and will resume making their monthly payments.
However, if the original owner does not take any steps to reclaim their vehicle, then it is up to the lending institution to liquidate it. The reason that so many used car repo deals are found in Hartford, CT is that banks do not want to keep the vehicles. Unlike car dealerships, lending institutions do not aim to profit from the reselling the repossessed car for more than the amount owed. In most cases, the ultimate goal of the lending institution is to simply recoup the total loan amount, including the interest that was tied to the loan.
If you want to take advantage of the used car repo deals found in Hartford, CT it is best to wait until the lending institutions send the vehicles to auction. Keep in mind that it will normally take between 30 and 120 days for the lending institution to make this decision. They will first try to resell the car themselves. That way they have the final say on the price that the new owner will pay.
Once they send it to auction, they will most likely set a reserve bid, at least initially. If the car goes on the auction block and the reserve is not met, the reserve will then be lowered. It is at this point where the real deals are found. Every time the car goes onto the auction block and does not sell, the reserve continues to be decreased. In order to get the best deals, it is really a matter of playing the waiting game. Savvy buyers will not make a bid on a repossessed vehicle until someone else does. This is because once someone else starts the bidding, there is no chance that the car will not be sold, so it is time to take action and be the winning bidder.