Vehicle repossession means lenders that have lent a vehicle to borrowers, based on a set payment schedule, have reclaimed the vehicle due to outstanding payments. Put simply, if you do not make payments on time or in full, you violate your legal agreement and your car will be repossessed by the lender. The lenders then will sell the vehicle at an auction. For those who have been looking at purchasing a new, affordable vehicle, whether that’s SUV deals, Dodge trucks, or anything that shows up when you search ‘dealerships near me’, a repossessed vehicle may be your best bet. However, there are different processes to consider—here’s how to buy a repossessed (or repo) vehicle for cheap:

1. Find a repossessed auto auction

You might be wondering where to even find a repo vehicle auction, and it’s actually quite easy! Most car auctions will be listed online, you can simply search for car auction directories to find auto auctions happening near you. However, auctions are also often listed in local newspapers or regional car magazines. There’s also the trusty word of mouth, so ask around with your friends and family to see if they know of any auctions or have any experience and advice to share.

2. Look into what kinds of cars are at repo auctions

While some auto auctions will release a list of vehicles that are available for bidding before the auction, most times, these will be unpredictable and auction houses will withhold details until the day of. Don’t worry though, these auctions will typically have a wide-variety of selections, from sedans, sports cars, motorcycles, hatchbacks, and more—you are sure to find a vehicle that works for you!

3. Know the value of vehicles

Auctions will provide a minimum starting bid, but after that, it can be hard to know when to stop if you don’t know the actual value of vehicles. Also, some auctions may have minimum selling bids, meaning that the car cannot be sold until someone bids the minimum requirement. Regardless, it’s important to understand the value by looking at the make and model, as well as the condition of the vehicle. There are also some websites that allow you to enter a vehicle’s details to give you a fairly accurate look into the value.

4. Be prepared for the auction to get the best deals

Alongside understanding the value of certain vehicles, there’s other research and preparations you should make before heading to the auction. Set a budget for yourself and make sure you consider your finance options. Pre-register for the event, make sure you bring a valid ID,  and arrive early to ensure substantial time to look at the vehicles—don’t rush through it. If the auction is online, make sure it’s a trusted seller. Additionally, whether it’s online or not, always make sure to look at the mechanical or condition report of the vehicle. Lastly, before the vehicle you want is put through, ensure the auctioneer can see your bidding number easily and take your badge to the auction clerk once you’ve won a car.

Being prepared goes a long way in a repo vehicle auction, and you can score yourself an amazing deal with these tips. Happy bidding!