Is there a reason I shouldn't do this ?

[rh71]

There's a "PRIOR BANK ASSET SALE: local and national banks and lending institutions have released liens on 275 preowned vehicles for immediate public sale prior to dealer auction disposal - this is not a repo auction".

We have a 1990 Honda Accord with 122k miles with countless problems the last couple years but none of them are inhibiting daily driving capabilities (except the check engine light that's indicating a tranny problem - we don't feel it though). Who knows what will come up next.

According to the newspaper-sized "flyer", majority of the vehicles are still under factory warranty (lots of 2002-2004s) and most come with a limited warranty. They are to be sold for as little as 10% of their original MSRP. Trade-ins are permitted.

Pay options:
cash, personal checks, credit cards ($500 limit) -- ???
new loans with on-site lending institutions

My dilemma: I want a new (used) daily driver... the thing we have is nearly 15 years old. These 2001-2004 cars available for auction have anywhere from 20k-90k miles on them, but at 10% original value, why not do this, right ?

ie. a 2002 Honda Accord (40k miles), for as low as 10% could mean $3k, $4k... as opposed to if they are Kelley Blue Booked at ~$13k. Am I missing something ? Why wouldn't I do this deal ?

I've got more questions if you guys think I should go ahead with this. As I read into this more, I'm seeing the $500 limit as reason for me to HAVE TO take out their loans with interest. Is this the catch ?

 

[Tremulant]

You should go check it out and see if there's any catches to it. Otherwise it sounds great.

 

[rh71]

Our '90 Accord's title is under my wife's name. Must she be there or can I just give them the title ? This is short notice since the sale is tomorrow at 2pm.

 

[StageLeft]

They are to be sold for as little as 10% of their original MSRP.

Ah haha, what a load of sh*t. These things are a joke. Seriously, you don't think that professional used car salesmen would be in on this? Too good to be true? Yup.

 

[amdskip]

Do you really think you could get a 5 year old car like that for 3-4K? LMFAO

 

[kranky]

The catch is this:

They are to be sold for as little as 10% of their original MSRP

.

Don't expect to find a deal any better than your everyday visit to the car dealer would turn up.

 

[rh71]

how do car auctions work (seiged, reposessed, whatever)? How much do those go for ? Why do people go to them instead of used car lots ?

 

[BooGiMaN]

if its too good to be true....

 

[rh71]

Originally posted by: amdskip
Do you really think you could get a 5 year old car like that for 3-4K? LMFAO

No I obviously know what AS LOW AS means. They state 3 cars WILL BE sold for $1995. Meaning everyone else will be sold for at least $2k. Hell if I can get a book valued $13k car for $7k, I'm still coming away smiling. $10k range would put me into the category of I'll-live-with-my-beater for now.

 

[Ketteringo]

Originally posted by: rh71
how do car auctions work (seiged, reposessed, whatever)? How much do those go for ? Why do people go to them instead of used car lots ?

We have your car under seige! Surrender now, or we will starve you out!

Sorry 🙁

 

[StageLeft]

Originally posted by: rh71
how do car auctions work (seiged, reposessed, whatever)? How much do those go for ? Why do people go to them instead of used car lots ?

Because they ARE cheaper, just not THAT MUCH cheaper. They are not cheap enough that it's worth it, for most people. If you know a lot about used cars, and how to appraise one quickly, then it can be how you make your living, but for the average joe off the street it's not worth the effort. They'd be better off going to a used car lot.

Hell if I can get a book valued $13k car for $7k

You can't, because if you could a professional car salesman would offer $8k instead and sell the thing for $13k and pocket the change. But, no he couldn't, because another used car salesman would offer 9, and another 10, and then another might offer 10,500, and then they let him have it, because none of the others can be bothered to get it for $11k, recondition it, ship it, and sell it at $13.

 

[DrPizza]

For car auctions, you just have to get lucky and go to one that isn't heavily advertised. That sounds more like a publicity stunt than anything. In fact, since they're not repo'd cars, it simply sounds like cars that are at the end of their lease are being sold. Read the advertisement again carefully:

immediate public sale prior to dealer auction disposal - this is not a repo auction

So... a dealer is going to sell the lease trade ins... And, whatever they can't sell, they're going to take to the dealer auction to get rid of them.

 

[DrPizza]

Oh, and read another part carefully: 10% of the ORIGINAL MSRP... not 10% of the current value. So, someone traded in a 1990 car. The original MSRP (which is higher than anyone would pay) was 20k. They're going to sell it for 1995.

If it sounds too good to be true... it probably is.

I have no doubt that if you find out about enough small auctions, over the course of a couple of years, you might find a few steals. But, to get a great price on something heavily advertised... it's just a gimmick to get you in there.

 

[zimu]

does sound pretty sweet, definitely look into the possible catches in previous posts- including drpizza who makes quite a valid point!

 

[rh71]

Originally posted by: DrPizza
Oh, and read another part carefully: 10% of the ORIGINAL MSRP... not 10% of the current value. So, someone traded in a 1990 car. The original MSRP (which is higher than anyone would pay) was 20k. They're going to sell it for 1995.

... this is a good thing since the cars being listed are all year 2000 or more recent. I may just have to go check it out to see if there are any hot deals. It's a local thing - local dealer, sent out via US Mail flyers in the area ... and starting at 2pm on a weekday no less. I'm there, to at least check out the prices all around. 275 vehicles that must be gotten rid of... I have a feeling they're not all going for $10k plus. I really have nothing to lose... except this beater. I'll bring my magnifying glass with me for the contract. 😉