When does a car become repossessed? : A car is repossessed when the owner of the car is unable to pay the loan amount and defaults on the installments even after repeated reminders by the lending company or bank. There are thousands of people every year who face this harsh reality and their financial setback gets a REPO agent knocking on their doors. The lending company has full right to take possession of the car in case of nonpayment.

What happens to these REPO cars? : The bank or lending company is not interested in keeping or using these REPO cars and want to dispose off these cars at the earliest. Most of the REPO cars are auctioned and many of them are auctioned through online companies like auctionexport.com. How is the price of the REPO car decided? : The lending company or bank is not looking to make a profit from the sale and just want to recover their amount. Their only financial interest is to recoup the amount and for that they assign a value to the car. This becomes the base value or minimum bid value of the car. In case the bid does not reach this value, then the lending company may not sell off the car in the first instance. Many a times the finance company is even willing to sell off at a price lower than the reserve value and take a little hit on the car.

In most cases the price of the REPO car is way less than the market value of the car and is an excellent deal for any car buyer who is looking for used cars. You can save upto 40% of the car value by choosing to buy a REPO car. The list of REPO cars contains thousands of cars in sites like auctionexport.com and there is definitely one that perfectly suits your needs and fits your pockets.