Foreclosed or repossessed (repo) RVs are recreational vehicles that creditors, including banks and lenders, repossess when the owners default on payments. The creditors then put the RVs up for auction at repo outlets in their current state to make up for their losses. Those considering buying a used vehicle can look into repo RVs, as they are sold at low prices. Also, following a few tips can help them make an informed decision.
Tips to buy a repo RV
When considering buying a repo RV, one may worry that the vehicle sold at the auction may have certain defects or not be maintained well. That said, while there is a possibility that the RVs have certain faults, they are most likely on sale at a bargain price simply because the dealer wishes to get rid of them. So, do watch out for these deals. There are some tips buyers can follow to simplify shopping from RV repo outlets.
1. Decide a budget and stick to it
Before heading to RV repo outlets, buyers should decide on a budget. This is because, sometimes, they might come across the latest RV models that are put up for sale and might be tempted to buy the latest model. However, the newest RV with more features will be more expensive. So, setting a budget and looking for an RV that fits the budget and aligns with the needs is vital. Avoid looking for a repo RV first and then increasing the budget, as this approach will only put them under financial strain. Remember, the price of the RV will not be the only expense. The repo RVs are not maintained well. So, the buyer will also have to spend a few hundred dollars on its repairs and refurbishment. Hence, account for this surplus expense and the auction commission rates when deciding on the budget.
2. List down the requirements
There are a few factors buyers need to consider, and accordingly make a list of things that they require in a repo RV. For instance, some buyers may want an RV that gives less mileage. Some may want more cabin space or with an RV with a specific number of berths. On the other hand, some may want an RV that is suitable for off-road travel. So, making a list of all the requirements can help buyers make an informed decision.
3. Contact local dealers
Interested buyers should contact some popular local RV dealers for recommendations or leads. Some dealers may have a repo RV in the make and model the buyers want. While dealers also sell at auctions, they are open to selling privately. Shopping directly with the dealer can save buyers money on auction fees. This can be a win-win for both parties.
4. Inquire at the bank
Customers should never hesitate to ask their banks if they have any RVs on their repossession list. RVs are not cheap, and many people get loans to buy RVs. Banks typically seize these items for repossession when borrowers default on these loans. The banks then add these items to their list of repossessions. Many banks directly sell these RVs. It can be a quick and easy way to buy an RV. Moreover, the chances of acquiring the RV at a bargain price are high because the banks wish to quickly get rid of the RV to close the loan in their books. Loyal bank customers may also be able to finance the purchase via the bank.
5. Check on auction sites
Searching for the RVs on the online auction sites is easy. So, check out as many websites as possible. This will provide a sense of what is available in the market and the prices at which these RVs are sold.
6. Check multiple auction sites before bidding
Often, people rush into buying an RV, thinking they may miss out on the deal. While it is true that these deals are short-lived, it is recommended to check at least four or five auctions before placing the bid. It is necessary to test the waters and understand how these things work. This can also be an interesting way to know if one has a realistic budget based on the prevailing market rates. While bidding for RVs in an online auction is convenient, attending these auctions in person is advisable first.
7. Reach the auction early
Once buyers know the RV they are interested in, they must reach the auction at least an hour before it starts. This will give them ample time to examine the RV, and they will not have to rush the bid if the auction ends soon. Letting an RV go is better than bidding if one is not 100% confident about it.
8. Verify the warranty
Inquire if there’s a warranty on the RV. If not, always consider getting the warranty after finalizing the purchase.
9. Do a thorough inspection
Always check the car’s service history. Also, inspect it for engine issues, signs of mildew, rust, and dampness. Additionally, check whether the equipment and furniture installed are in good shape.
10. Legal obligations
Once the bid is accepted, it becomes legally binding. So, buyers must be prepared, as they will have to make the complete payment.
