What can repossessed cars for sale offer me?

It's an unfortunate fact of life that we fall on hard times occasionally. When this happens, finance companies are often forced to step in and take back cars on which they are owed money. What happens to these repossessed cars and what are the benefits of buying one? Are there any risks attached? Read on to find out a little more.

Where do they come from?

Strictly speaking, car repossessions in the UK come from finance companies. When a client can no longer service a debt secured on a vehicle, the loan company has the right to take back the vehicle and dispose of it in a manner they see fit in order to recoup some of their losses. These "snatch backs" can come from private individuals, small firms and even large corporations (although you are less likely to be able to buy this stock as they are often sold as a lot through official receivers). There are also surrendered cars from this source which are given up by owners who know they cannot afford the debt but don't want to incur the charges that result from repossession orders. We tend to include vehicles seized by the police or impounded by Her Majesty's Customs and Excise in this category. Many of these, however, never reach the market place as they are often crushed as part of the "ill-gotten gains" legislation.

What are the pros and cons of buying?

Pros The biggest benefit to be gained from buying a repossessed motor is that they are cheaper than other private or commercial car sales. The savings you can make are often considerable. You need to ensure, however, that the car is free from any finance or ownership issues before you purchase. Failure to do this may well mean that you don't own the vehicle and lose the money you've paid for it. A large number of these cars, especially those that come from bigger companies or have been surrendered by private individuals, are in excellent condition. There is a tendency for some owners to damage their cars out of spite when they know they are going to be repossessed. This damage isn't always obvious so check the vehicle thoroughly before buying. Cons The biggest negative aspect to buying a repossessed car is that they are almost always sold as seen. This means that, even if you buy from a trader, you will have no warranty. Consider this aspect carefully as repairs can soon eat up any savings you may have made.