How to Buy RV Bank Repos at Auction
Recent changes in the economy have made this a great time to buy used rv bank repos at auction. All across America, RV foreclosures and repossessions are increasing. Buying an trailer or RV bank repo could be a great way to save money on the purchase of your next recreational vehicle. Chances to find these deals increase during times of economic downturns. The current demand for these trailers however, is unable to keep up with the supply of foreclosed and repossessed trailers entering the market.
Getting a discount is better than buying new.
Dealers have a tendency to mark up their inventory by as much as 40% above invoice. This is one of the reasons why buying a new RV could cause you to lose up to 35% of its value in the first year. To save you from losing money we recommend buying used. The best used RV deals are typically rv bank repos sold at auction and RVs purchased from sellers desperate to sell.
Unfortunately most bank repo RV's and trailers are sold through 3rd party dealerships or at dealer auctions. Some however are open to the public. You can get a good deal at an auction because banks usually want to sell the RV as quickly as possible and are willing to discount the repo RV in order to get rid of it. You can also check out other institutions to find great auction deals like the IRS and police seized RVs.
RV Bank Auctions: How to Find Them
Find bank repo RVs by contacting your bank or lending institution. It may be hard to get you to the right department, but persistence and intelligence pay off in most cases. You will find out what they have available and whether their auctions are open to the general public. Hopefully a few lenders will be helpful. American General Finance (historically) is the biggest sub prime lender on the west coast. We used to send buyers to them we knew no one else would finance. Sub prime lenders are an excellent source for bank repo RVs.
These repos may be sold at a silent auction or a vocal auction. Ideally, they will allow you to inspect or at least walk through the rv before the repo auction. Most RV bank auctions sales are final. You buy the RV in As-Is condition.
Unlike foreclosed home, most repo-ed trailers are in great condition with little wear and tear. Look for an RV in good condition for an excellent price. Fortunately, you can also benefit at an auction by getting a lot of upgrades. Look for trailers with useful upgrades like Internet access, an extra generator, satellites, and multiple slide outs. You can get a lot more trailer for your money.
Focus is the first part of buying a repo trailer at an auction. It is important to have a ceiling bid in mid before bidding. This will help you avoid a avoid a bidding war and spend to much for the trailer at auction. The ceiling bid is the is the maximum you will bid so stick to it. The people who lose at an auction are the ones who become emotional and overbid.
When possible, allows make sure to inspect the unit before bidding. Find out whatever needs to be fixed and then deducted the amount of repairs from the price you are willing to pay. When it is not possible to inspect the trailer first, it is probably a good idea to factor in a contingency. A good percentage is 5-15% above the likely cost of minor repairs. The lemon law in some state give you 24 hours to 3 days to return the rv bank repo if you find and major problems.
Knowing the correct value is the best place to start when looking to get the best deal on Bank repo trailers and RVs. Before you bid, it is important to know the approximate value of the repo RV. You can also use a guide book such as the NADA or Kelley blue book guide to determine the approx value of the repossessed trailer. If you use the NADA remember you are buying under private party value. You should be able to get it for trade in value or less. Most people do not have access to this value, but if you call a dealership they will be happy to give you a low trade in value to work with. (Especially if they think they might be getting a trade in.). Best luck in hunting for your next bank repo RV!