Banks and other financial institutions are not thrilled to have repossessed vehicles on their books, particularly since these assets are prone to drastic depreciation. These lenders make money by charging interest on issued loans and not by possessing a lot full of pre-owned cars.
Therefore, they are keen to sell the vehicles as quickly as possible to recover their bad debts and minimize storage costs. Typically, the banks will engage the services of an auction house to facilitate the bank repo car sales. Similarly, governments divest of their seized car inventory through government car auctions.
If you are shopping for a used car, you should definitely consider repo cars. It is not unheard of to acquire a good vehicle for a discounted price that makes even Scrooge smile. Getting one of these fantastic deals is indeed an affordable "luxury" for the new owner. However, it does require some patience and time to track down the ones that meet your needs. But if you're willing to put in the effort, you will be well rewarded with great savings.
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