When you start to look for a used car, you are going to find many different options on the market. The biggest problem with buying a used car is typically the fact that the best models are still rather pricey and the cheaper models need work to be brought up to their best possible state. The newer models of used cars are usually only for sale when there is something wrong with them or they have been in an accident. It is not easy to make sure that you are getting a good vehicle if you turn to a used car, even though this may be your only option available. The best chances you will have with getting a used car comes when you look at repossessed cars in auctions.
When someone is consistently not able to make their car payments, their car will eventually be repossessed by the bank. That car is still normally relatively new and usually in a good working condition. After the bank repossesses it however, they will need to pay to keep it stored. This is not usually feasible and as a result, they will sell the car in an auction. The price they receive for the car is usually not worth the entire loan amount, but it is better for the bank to make some money off of the car than to continue losing money by paying to store the vehicle.
One reason for the low cost of repossessed cars is that the banks for loan institutions are in a hurry to get their loss taken care of. And even if they sell it cheap, the difference will still have to be paid by the person it was repossessed from, the original owner. But they will still try to get as much as they can.
The best deals are the ones you find where life has thrown someone a really bad curve. They've only had the car a few months and suddenly find that the job that they thought was secure for the next decade is no longer there and they can't make the payments any more. So the car gets repossessed. These low-mileage beauties are the ones you want to find. They haven't had time to suffer from wear and tear.
Although auctions are awesome to get your new car at you need to be aware. You will need to contend with used car dealers who may be able to place higher bids than you are able to, and you will need to provide payment up front rather than being able to do any financing. This may make some people unable to afford repossessed cars.