Is it a good idea to buy repossessed luxury cars?
Buying a repossessed vehicle, especially a luxury car would save you a good amount of money. However, if you enter an auction, bear in mind not to get carried away and end up paying more than it’s worth to.
When owners can’t afford to pay their car loans or hire purchases, the car company will retrieve the car and then resell it.
What are repossessed vehicles?
Repossession means restoring ownership to someone or something (companies). When you buy something expensive like a house or a luxury car by borrowing money from the bank or lending companies, you need to pay monthly rates for that item. If your payments are late and stop, the bank or the lending company will ask for the item to be repossessed (going back into their ownership).
Cars are also repossessed – sold to new owners if they were stolen and then recovered but were not claimed by their owners. They are then auctioned for resale, usually by the police. You can learn more, here: Police repossessed cars for sale in the UK.
Seized cars from drug dealers or other criminals, end up being sold for repossession.
A high amount of these vehicles are luxury ones.
Repossessed vehicles (cars, motorcycles, etc) are the ones that were not paid by the buyers and the company/bank takes it back.
You might ask yourself how come there are luxury repossessed cars for sale.
Debt can affect anyone. Businesses can go through decline due to current economic trends, bad financial decisions; bad timing when deciding on a purchase and the list can go on.
How can you buy a repossessed luxury car in the UK?
You can buy a luxury repossessed car from:
- Auction houses – are great places to be as you will be able to check the vehicle before the auction starts
- Online auctions – are an easy option because you can check the stocks by setting an alert for your desired car. Moreover, you can bid from the comfort of your home or when on the go.
- Bank or credit unions – registering your interest through their websites
- Police auctions – online or onsite auctions
- Car dealers – offer you the option to check and test drive luxury brands
Advantages of buying a luxury repossessed vehicle
- The auction houses and companies that sell them will ensure that they have all documentation in order.
- These cars will be tested in order to check they are fully functioning
- Safety for the buyer
- Usually, the cars are in good condition
- The price is lower and you will afford luxury brands at a fraction of their costs
- If the car is quite new you might still benefit from its warranty
Where can I find a luxury repossessed car?
The internet is a fantastic way to search for anything. Check online websites and tips from other buyers when it comes to buying a repossessed item.
Here is a useful list of companies that sell repossessed vehicles in the UK:
Repossessed cars – what car brands are considered a luxury?
In order to be considered “luxury”, the car must have high-end features that go above and beyond the average necessities. Contrary to popular belief, luxury cars can come from any brand. Here is a list of them:
- Aston Martin
- Rolls Royce
There are a number of celebrities that had their luxury cars repossessed in the past. Just a few of them are:
- Katie Price – had her pink car put up for sale after she failed to pay a fine
- Jermaine Dupri – had his Lamborghini repossessed by its car dealer
- Katy Perry – remained behind with her VW payments
- Daniella Westbrook – reported her car as being missing before admitting that it was repossessed
Disadvantages of buying a luxury repossessed vehicle
- Auctioned vehicles can’t be test-driven
- You don’t know the history of that specific car
- Takes a while until you find the make you want to buy
Probably the best thing about cars that are auctioned for repossession is that they are big money-savers, thus making luxury cars more affordable. Anyway, there are a few risks that come with getting a used car, and, of course, you will need a new MOT (a good idea is to check its MOT history here) and to compare insurance prices online in order to get the best one.
With all these in mind, remember to check your finances before buying any assets to avoid your vehicle being repossessed!