Due to the recent financial crisis, there are very few people today who are in the position to purchase vehicles. Only a very small amount of consumers have the kind of cash on hand that is required to purchase large consumer durables, and so the automotive market has been suffering quite a bit. In particular, traditional new and used car dealerships have suffered a lot, because many of their customers are unwilling to put up with their high prices (in the case of new car dealers) or with their aggressive bargaining and haggling tactics (in the case of used car dealers).
Instead, we have seen the rise of a lot of entirely different secondary markets by which cars are bought and sold. In particular, the recent development of online auto auctions has grown in leaps and bounds, as more and more people realize the kinds of savings that can be realized by purchasing cars through the internet.
Furthermore, more and more consumers (those that are able to purchase cars) have been turning to the repossessed car market, because repo cars generally sell for a lot less than new or even used cars. Of course, there are a lot of complaints about quality – many people who purchase repo cars are surprised by the amounts that they have to pay in maintenance fees, et cetera – but on the whole, these complaints are largely over hyped.
The other thing, of course, is that anyone thinking of purchasing bank repos should take the appropriate precautions – for example, it is never a bad idea to take a mechanic with you whenever you are at an event where you might bid on a vehicle. The fact is that there are too many people who think that the cost of hiring a mechanic for the day is too high, and so they skip out on it – and later realize that they could have avoided tens of thousands of dollars in maintenance fees by hiring a mechanic for a few hundred dollars.
Auctions, whether they are online or off can be stressful, be sure to set your maximum bid ahead of time, it’s easy to get caught up in the excitement and spend more than you plan.