Guide for Buying Repossessed Cars At Auction

When buying at a repossessed car auction, there is much more to do than just assessing the appearance of a car you are interested in. Further research is required before a purchase is made. Car auctions are widely regarded as being the best place to pick up second hand or repossessed cars at the best price, but it is also very important to note that people often end up paying over the odds or picking up a repossessed car which gives them mechanical problems.

For this reason we have put together a comprehensive guide to buying a repossessed car at a car auction near you. This will help to assist you especially if you are attending your first auction. If you are going to your first auction, we would recommend attending with someone who has been before and is familiar with the process or we would recommend only observing on the first occasion. Remember that casr are sold “as is” at auction, which means that the vehicles will be sold as they appear on the lot and once the highest bid has been made, it is binding.

Below is a guide to purchasing a repossessed car at an auction:

1. Take A Mechanic With You
It is advisable to take a car mechanic with you when attending an autcion, particularly if your knowledge on what's under the bonnet is limited. The expertise of a mechanic could save you lots of money in the long run so even paying him a small amount could help you pick up a good deal. It is important to check the car from top to bottom especially the engine. The majority of auctions do the utmost to make sure the repossessed cars on offer are at a high standard and are reliable. However, it is important to note that some vehicles which are below standard do make it through so it is important to make sure you avoid these kind of vehicles.

2. Study the Vehicle History
Before making a bid you should make sure you study the history of a vehicle. Auctions are often made up of cars which have previously been in accidents, and these are the cars which are usually being sold cheaper than the market rate for the specification of car. It is important to note that these cars may cause problems by not running properly especially if they have been in a major accidents and repaired. Slightly accident damaged motors can often prove to be a bargain so try to keep an eye out for these.

3. Have a Price in Mind and Stick to it
Do not bid too much for a car. It is very easy to go above market price when bidding so we would advise to calculate a price for a vehicle you are interested in and don’t go above this price. Repossessed cars often get overpriced when there is a bidding competition. In these cases we would advise to not get involved and let the winning bidder take it. If the price becomes too overinflated it may be better to look at other options.

4. Check the Pedals and Steering Wheel
A very simple tip when buying at auction or buying any used cars is to check the pedals. These are usually not replaced or changed so it can often be a giveaway when the exterior of a car has been modified or repaired to make it look almost new. If the pedals are worn and the outside of the car looks brand new then you know that something has been changed. It is recommended to check the paintwork thoroughly and also have check the steering wheel. Move it back and forth, any clunking noises and this is a car we would not recommend you buy.

5. Carefully Examine the Frame
If a car has a damaged frame, this would indicate that this is a vehicle which has been involved in a major accident at some point in its history.

6. Run A Finger Into The Edges
When examing the car we would advise to run your finger into the edges of the paintwork, rough spots indicate that the car has been fixed after being in a major accident. These rough spots appear when masking tape has been applied to the car bodywork during a paint job. Also look for changes in shades of colour. New resprays may have a slightly different shade of colour - another giveaway that a car has been repainted after a collission.

In summary its important to not rush into buying something you are not sure about. You should have a good feel about the car and make sure the price is right. If its something you are planning on driving for a while why push yourself into buying a car at the first auction you attend. Would it not be better to attend a few auctions, learn the process and wait for the right car at the best price to come along?

Repossessed Cars - How to Avoid Buying a Stolen Car

Last year, 350,000 cars were stolen in the UK. If you were to accidentally buy a stolen car, you may have no right to keep it even if you handed over your own money for the car. Below is a guide on avoiding how to buy a stolen car. Some of these tips can be used when trying to buy repossessed cars.

1) Telephone Numbers
Check the number on a car advert. Mobile numbers are almost possible to trace, so try and get to speak to the owner on a landline. Be wary if you are asked to call at a specific time, this could be a phone box number.

2) Viewing
Arrange to view the car in the daytime at the address the car is registered to. Don't agree to have the car driven to you or meet in a public place like a lay-by or car park. If you are asked to do this you should be suspicious.

3) Check Documents
Ideally every car seller will provide a V5 log book which is its registration paper, MOT, Tax, Service history and receipts for maintenance work. Check the seller's name is on the registration to make sure they have the right to sell the car. Ask them for ID to confirm this.
Check the VIN number on the vehicle registation papers. VIN stands for "Vehicle Identification Number" and every car has a unique one.
Check the registration matches the car's number plate. Hold the V5 log book up to the light and check that you can see the DVLA watermark on the paper. Never buya car without a V5 log book, ewven iof the seller claims that he has sent it away to update the information to the DVLA.

4) VIN and Etching
A stolen car that has its VIN changed is a "ringer". Some car models have the VIN etched on the windows or the headlamps of the car so its important to look for these. Be wary if there are stickers on windows as this may be an attempt to conceal numbers that don't match the vehicle.

5) Inspect the Vehicle
Check the locks as thieves replace locks, also inspect the vehicle thoroughly to see if there is any damage. Check the paint in the boot by removing the carpet where the spare tyre is. The inside should be the same any different could indicate the car has been resprayed.

6) Car check
There are many companies offering car checks and HPI checks on vehicles for a small fee. This will tell you if the car has any outstanding finance, it has been written off or if it has been registered stolen. They will also tell if you if it is registered as SORN (Statutory Off Road Notification), this means the car has been registered as not road worthy. It is worth paying this and avoiding bigger headaches after purchasing a stolen car.

7) Instincts
Always trust your instincts. If the deal feels at all suspicious, you have the right to just walk away, there are plenty of other cars available.

Repossessed Cars: What is a Default Notice / Court Summons

Before a car is repossessed a default notice will be sent out by loan company and if this is not complied with, court proceedings take place.

If a buyer fails to keep up repayments as per the agreement of the purchase of a car a lender will initially send out reminders of payment. Following this a default notice will be sent to the owner.

A default notice is a formal notification of arrears. A default notice will stay on a person's credit file for 6 years and will make it extremely difficult to obtain any further credit. For this reason it should treated as a priority and dealt with immediately.

If payments are in arrears the loan company MUST serve you with a default notice before any court action or legal proceedings take place. A default notice will provide details for immediate payment and if this payment is made there will be no further action taken. There is usually a time frame of 7 days when a default notice is issued before court proceedings.

Court Proceedings

After sending a default notice, the lender can start the process to recover the money by issuing a claim form. If you receive a claim form, you will know that the lender has started proceedings in the county court. This claim form will make it clear who is taking you to court, the amount of arrears and proposed action.

To avoid court action, it is advisable to contact the lender to establish a mutually acceptable agreement. Court action will result in the registering of a County Court Judgment or CCJ against you and the issuing of an Order by the court that the debt is repaid either immediately or by installments. So long as the debt is for less than £25,000 you will be able to apply to the Court for a Time Order to give you more time to repay the debt.

If you have been requested to repay the full amount, you can apply to the court to vary the order to a monthly payment you can afford. Filling in a N245 form, which can be obtained either from the court, or downloaded online, can do this. Generally there is a fee of £30 to be included with the Variation form; however, this can sometimes be waived if you are on a low income.

The N245 Varied Order form is your opportunity to inform the court of an offer of repayment you believe you can afford to pay each month. The court will pass the form onto your creditor for them to decide if the offer is acceptable or not, If the creditor refuses your offer, the court will take a look at your details and set a repayment the court believes you can repay. If the creditor accepts your offer, the order will be made for the amount you said you could pay.

A County Court Judgment will be registered on your credit file and will remain there for 6 years. However, if you repay the judgment before the 6 years are up, you can apply for a Certificate of Satisfaction. There is a cost of £10 for court fees. This will then be placed on your credit file that will be seen by any lender you use to apply for credit.

To prevent a County Court Judgment from being registered on your credit file, you need to repay the full amount requested within one month.