Things to Remember When Buying a Repossessed Car

car repossestion

The benefits of having your own car ultimately lies in the convenience it offers. Imagine having the convenience of getting anywhere with your family and friends – all at your own pace. Considering how taxing getting to most places is these days, a lot of people now want to own a car for personal use.

Today, you have a lot of options to choose from if you want to have a car of your own. You can straight up buy a brand new car if you have the cash, or you can finance a car through a bank or other financial institution. However, you can also choose to buy a second hand car if you want to save money.

You can buy used cars from private sellers, but did you know that you can also obtain them from banks? Some banks have used cars for sale, generally called repossessed cars. Here are some things to remember if you decide to buy a repossessed car in the Philippines:

## What is a repossessed car?

In a nutshell, repossessed cars refer to pre-owned vehicles that are repossessed by banks when the borrower either defaults on the loan or is unable to pay off the debt. Some repossessed cars also come from borrowers’ collaterals. Here in the Philippines, the Security Bank, PSBank, Union Bank, and EastWest Bank are some of the many banks that have several repossessed cars for sale.

## Why should you buy a repossessed car?

There are several reasons why purchasing a repossessed car from a bank appeals to many people. One reason is that for some, obtaining a repossessed car from a bank can be a safer option than buying a car from an unknown, private seller. As opposed to dealing with strangers, dealing with a reputable institution can ensure that legal documents for the car are easy to obtain and process.

## Do your research

First, the condition of the car should always be your main concern. Remember, a repossessed car is also a second hand car. Since these kinds of cars have gone through owners, you can’t expect that they will be in brand new condition. Therefore, before you go to the warehouse where the bank keeps their repossessed units, you must research about the car that you’re considering to buy so you know what to check and look out for.

## Inspect the car and ask questions

In some cases, banks sell repossessed cars on an “as-is, where-is” basis. This means that you, as the buyer, accepts the car in the condition that it is in, including any flaws that it has, so it’s important to check the car that you’ve been eyeing thoroughly. In doing this, it is recommended to bring your trusty mechanic with you to be completely sure. Nothing beats an expert opinion, right? Ultimately, there might be several parts that you will be concerned about. Check the most important parts – especially those parts that are essential to making the car run smoothly. Make sure that they are running well and are still in good condition.

Since repossessed are second hand cars, some other things that you should watch out for are signs of flooding or an accident. Take note that in some cases, some previous owners may not only have been unable to pay for the car anymore, but they may have also neglected the car’s condition upon finding out that it would be repossessed later on.

## Test drive the car

Make sure to test drive the car to check every gear and the car’s overall performance. However, be aware that in some cases test drives and checking are not allowed. In these instances, you must make use of the resources available to you. There are bound to be photos of the car provided by the bank, so make sure to check these out and ask for an expert opinion.

## Disadvantages of buying a repossessed car

While buying a repossessed car can be a great option for some, there are downsides. The quality of the pre-owned car itself can be “hit-or-miss”. Since they’re pre-owned cars, the condition will still depend on the maintenance and driving habits of the previous owner. So in a nutshell, the whole business of obtaining a repossessed car will still depend on lady luck. Take note that some banks disqualify offers that are less than the selling price, so be sure to offer a reasonable amount.
Ultimately, when looking to buy a repossessed car, remember to always evaluate the choices available to you. Remember, you must always be careful when buying a car as it is a big decision to make. Whatever means you use, you’ll be stuck with the financial responsibility for several years to come.

Read All

Featured Articles

Recommended Articles For You

Read All

Featured Cars

  • Upcoming

Car Articles From Zigwheels

  • News
  • Article Feature
  • Advisory Stories
  • Road Test
  • ACMobility guarantees worry-free electrified mobility EV models, charging hubs
    ACMobility guarantees worry-free electrified mobility EV models, charging hubs
    Ruben Manahan IV . Mar 28, 2024
  • LTO announces DL renewal schedule, to commence after Holy Week
    LTO announces DL renewal schedule, to commence after Holy Week
    Paulo Papa . Mar 28, 2024
  • GAC Motor PH to reveal Emkoo Hybrid
    GAC Motor PH to reveal Emkoo Hybrid
    Ruben Manahan IV . Mar 27, 2024
  • Toyota PH offers emergency roadside assistance for Lenten season anew
    Toyota PH offers emergency roadside assistance for Lenten season anew
    Paulo Papa . Mar 27, 2024
  • Honda Cars PH reactivates HEAT for Holy Week
    Honda Cars PH reactivates HEAT for Holy Week
    Paulo Papa . Mar 27, 2024
  • Brembo: an ideal choice for discerning Filipino car owners
    Brembo: an ideal choice for discerning Filipino car owners
    Paulo Papa . Mar 26, 2024
  • Flyweight feud: Suzuki S-Presso AGS vs. Honda Brio V CVT
    Flyweight feud: Suzuki S-Presso AGS vs. Honda Brio V CVT
    Paulo Papa . Mar 20, 2024
  • Cabin check: What’s inside the BYD Atto 3
    Cabin check: What’s inside the BYD Atto 3
    Paulo Papa . Mar 19, 2024
  • Midsize SUV battle: Hyundai Santa Fe vs. Ford Everest
    Midsize SUV battle: Hyundai Santa Fe vs. Ford Everest
    Paulo Papa . Mar 14, 2024
  • Hyundai Santa Fe: 6 seductive colors
    Hyundai Santa Fe: 6 seductive colors
    Paulo Papa . Mar 12, 2024
  • Here are some ideal destinations and safety tips for the upcoming Holy Week
    Here are some ideal destinations and safety tips for the upcoming Holy Week
    Paulo Papa . Mar 08, 2024
  • Here are some New Year’s resolutions for car owners
    Here are some New Year’s resolutions for car owners
    Paulo Papa . Jan 03, 2024
  • PH auto market: 2023 in retrospect
    PH auto market: 2023 in retrospect
    Paulo Papa . Dec 15, 2023
  • Here’s a holiday gift guide for car enthusiasts
    Here’s a holiday gift guide for car enthusiasts
    Hazel Nicole Carreon . Dec 15, 2023
  • Oil players cut pump prices anew
    Oil players cut pump prices anew
    Paulo Papa . Nov 14, 2023
  • First look: JMC Grand Avenue
    First look: JMC Grand Avenue
    Paulo Papa . Mar 27, 2024
  • Above average: Toyota Raize G
    Above average: Toyota Raize G
    Paulo Papa . Mar 22, 2024
  • BYD Atto 3: from the metro to the mountains
    BYD Atto 3: from the metro to the mountains
    Paulo Papa . Mar 18, 2024
  • Late bloomer: Hyundai Stargazer GLS Premium
    Late bloomer: Hyundai Stargazer GLS Premium
    Ruben Manahan IV . Mar 08, 2024
  • Adventure-ready: Subaru Crosstrek
    Adventure-ready: Subaru Crosstrek
    Paulo Papa . Mar 01, 2024