The RV Repo Market:
With the downturn in the market, people are all excited about buying used RV repos. Buying discount used RVs is a great way to save a bundle. When people have hard times or a drop in their income it is often the motorhome that is the first thing to go.
As the economy continues to unravel many people wonder if now is the right time to buy a used RV and if they can’t get a better deal buying repo RVs. What are RV bank repos you might ask? It is an RV that has been repossessed by the lender and is now being sold at a discount.
Not all of these RVs are good deals. Several of the so called ‘repo RVs’ have already been bought by a dealer and are being significantly marked up and resold at or near retail prices. Most of the real ones are sold at an auction. Either a live or a silent RV auction. The lenders name should be on the title.
The majority of new RVs found at a dealership are overpriced. Most people know that a new RV will lose 30% of it’s ‘value’ when you drive it off the lot. The truth is that a bank repo-ed RV can be a much better deal when you buy the RV from the lender directly.
Banks and lenders are not in the business of selling used repo RVs. They are in the business of lending money and eliminating bad debts. These banks may not do a whole lot to get the RV ready for auction. This is alright because if you know what you are doing you can get a really good deal.
How to find an RV Repo Auction.
There are many different way to find repo rvs for sale. Start by checking local newspapers for RV auctions. Also check with the county offices. The state you are in may run public auctions. Also try to search for local online auctions (a lot are scams or 3rd party so do your research). The key is to find local auctions. Another good idea is to talk to local lending institutions in your area and find out what they do with their bad RV loans. (To be warned, it may require some convincing.) The advantage of finding the deals yourself is that you will have a lot less competition and you might be able to get a better price.
Lenders who resell repo-ed RVs will want to sell them as soon as possible and most often they will want cash for the title. Some times however, they will finance you on the purchase and they may also give you a favorable rate.
One of the biggest sub-prime lenders for RVs is American General Finance. Sub-prime loans are loans given to people with less than perfect credit for a higher than normal interest rate. As the market unravels a bit more, sub prime lenders may be a great way to get the best deals.
Fortunately for us, a repoed RV is not like a foreclosed home. Most are in fairly decent condition. You need to look for units with low mileage that have not been lived in. A good indicator of use is worn out upholstery and lots of generator hours. But most RV Repos will be in great condition. Some may even come with a lot of ‘free upgrades’ like satellites, internet access, and multiple slides. Upgrades on used RVs effect the price much less than an new RVs. The bottom line is that you can get more for your money.
Tips when bidding on RV Repos for sale at an Auction.
1) Stay focused on what you want and keep in mind your ceiling bid. You do not want to overspend your limit or pay more than the RV is worth. This also will protect you from a bidding war or becoming to emotional.
2) Before bidding try to (when possible) thoroughly inspect the unit. Keep in mind any repairs that need to be done on the unit and subtract this from the maximum price you would otherwise pay. Also factor in a 5-15% contingency factor in case the repairs cost you more than you thought.
3) Have the unit inspected by a mechanic if possible. Also inspect the repo RV to make sure all the appliances work and there is no water damage.
RV Foreclosure FAQ