When a recreational vehicle (RV) owner struggles to make payments on their RV loan, the lender consequently repossesses the RV. A repossessed or foreclosed RV implies that the lender takes back the vehicle in their possession. People may find such foreclosed RVs for sale in an auction, which is a great way to shop for RVs at affordable prices. Sometimes, lenders may sell these repossessed RVs to dealers who may put them up for sale.
Tips to purchase repossessed or bank-owned RVs
It is not easy to decide on buying a repossessed RV. People are generally worried that the vehicle may be faulty or there might be something wrong. This belief comes from its prices, which are often too good to be true. But, in most cases, it is safe to shop for foreclosed RVs for sale from lenders or dealers if one carefully watches out for latent faults and follows some handy tips.
Set a budget and stick to it
Before going to a repossessed RV dealer, do the math and finalize a budget. When people need a repossessed RV, they head to the auction, browse the RVs, and pick one that appeals to them. While this is excellent if there is surplus money in hand, it always helps to have a budget in mind if the scenario is otherwise. Setting a budget will prevent one from getting swayed when exploring the latest, expensive repossessed RV models that go way out of the budget.
When deciding on the budget, be realistic. Naturally, the newer RV models with better features will attract a higher price. So, one must restrict their search to only those repossessed RVs that fit in their budget range and meet their needs. Plus, when determining the budget, account for more than the price of the RV. Usually, these repossessed vehicles lack maintenance. So, the buyer must spend extra on its repairs and refurbishment. Beyond this, when shopping for bank-owned RVs for sale at nearby auctions, one must factor in the auction commission in the budget.
List all the must-haves
The must-have features differ from person to person. When determining the must-haves in the RV, one must answer a few questions.
- Is a low-mileage RV important?
- How many sleeping spaces are needed?
- Should the vehicle handle off-road conditions?
- Is a ready-to-use option required?
Understanding one’s preferences and what fits in the budget can prepare the buyer better for the auction.
Get in touch with local dealers
Contacting popular RV dealers can always benefit interested buyers and put them closer to getting their desired RV at a bargain. Usually, a dealer is the first one to know about these repossessed vehicles. So, it always helps to ask them because that increases the chances of getting the RV faster. It also saves the hassles of going to the auctions. Moreover, when the dealer makes a private sale, they do not have to pay the auction fee. This can help them save more. So, it is a win-win for both parties.
Check with the banks
Lenders who offer RV loans may have a small stock of repossessed vehicles. RVs are expensive, so many people take loans from banks to finance their purchase. But when someone defaults on these loans, the banks repossess these vehicles.
While the lenders typically sell them to the dealer or take them to an auction, if the customer acts promptly, they can get their hands on bank-owned RVs for sale at a bargain directly through the bank. Even banks are almost always in a hurry to get rid of these vehicles as selling RVs is not their primary area of work. So, they want to sell the vehicle and close the loans in their books. Moreover, many loyal bank customers can also get a good deal to finance the sale directly through the bank.
Explore auction websites
Looking for repossessed RVs on auction websites is pretty straightforward. But before shopping online, customers must check out different auction websites. This can give them an idea of what’s available in the market and the prices RVs of a particular make and model sell for. It can also be helpful when deciding on the budget.
Check multiple websites
Sometimes, the deals on RVs are highly lucrative and may encourage people to make hasty decisions. While it is true that these deals are time-bound, seasoned professionals do not recommend buying a repossessed RV in haste. So, one must check at least a few auction websites before bidding. Also, while online auctions can help understand the market, attending an auction and then making the purchase personally is always recommended.
Further, when attending an auction, one must always arrive an hour before the bidding starts. This can give the buyer enough time to examine the vehicle and decide if it is worth it before placing the bid.
Verify the warranty
Always inquire about the applicable warranty on the repossessed RV. If it is unavailable, get the warranty after the purchase.
Inspect well
When exploring repossessed RVs for sale nearby, check for certain factors.
- Service history
- Engine issues
- Rust
- Dampness
- Equipment and furniture installed
