These are used cars that have come into the possession of the banks or financial institutions because of the inability of their owners to pay off the debt or loan they used to buy them. In such a situation, the lenders that gave auto loans to these individuals have every right to take these vehicles back into their possession through a voluntary vehicle repossession process. After exercising their legal right, these financial institutions have a huge inventory of these cars to get rid of. A plus point for a common man is that he can buy a bank repossessed car for a price that is as low as 30 - 70% of its original price. Most of the time, purchases of these cars are financed by the bank or the lender who is selling it.
On the Internet
First of all, one has to locate the make and the model of the car he or she is interested in. The Internet is the place to search for your dream car in an online auction. Many lenders have put their inventory on the Internet. There are literally thousands of bank repossessed cars for sale online. It pays to search and select the car you may want to buy.
Financial institutions are not car dealers, but are in hurry to get rid of their cars. One can try one's luck in the auctions that are planned and advertised in local newspaper, radio, and Internet. The best way to go about owning one is to go to a small bank and get the required information. It is also important to be connected with someone in the bank, who will let you know when the bank is going to hold an on-site auction.
It may happen that, the car you wanted to buy is in an auction, but unfortunately, only car dealers can participate in it. If you are desperate to own that car, find a friendly dealer who can help you out. Of course, he may ask you a fee for bidding for you. However, if you are buying the car at a discounted price, maybe, you can afford it. On the other hand, there are walk-in car auctions, where you can bid for your dream car. Well, this a place to tread carefully. Be sure that all the rest of the bidders are individual buyers looking for these cars like you. There are bound to be car dealers in it, and you will be trying to outbid them on their own turf. At the end of the bidding, you may own the car you wanted to, but at a much higher price than the situation demanded.
Through Your Mechanic
It may happen that you are unable to locate the make and the model you want. Have a talk with your neighborhood mechanic. He may be visiting these auctions, or the banks, to look for vehicles on resale. He may know some inside information of the value of the cars on offer, and is willing to pass it on to you for some fee.
A word of caution for anyone who is interested in owning a bank repossessed car. Be patient until you find what you want, and when you find it, take a mechanic with you to inspect it. Make sure that you know all about the car's documentation before completing the buying process, and read the fine print on the deal documents.