Buying a repossessed RV is a great way to save money. Since new RVs are expensive and depreciate 30% the moment they leave the dealership, used RVs are much more affordably priced. With the recent economic struggles, the number of foreclosed and repossessed RVs is increasing and it is a good time of find a great deal. Those deals are not at a dealership but rather at bank auctions which can be difficult to find and navigate. Follow these four steps to buy a repossessed RV at auction.
1. Find the auctions. Since banks and lenders do not advertise auctions, it isn’t easy to find their place, date and time. Call your lender and others to ask about the next auction and if they will have any RVs available. You can also try lenders who do a lot of RV loans. American General Finance specializes in sub-prime loans for RVs and motorhomes and would be a good choice to contact.
2. Go to the auction prepared. Make sure you have a general idea of a good price on used RVs. If you look at a guide like the NADA or KBB, use the trade-in price, not the private party one. You can also call around to dealerships and ask about values of trade-ins. Also try to know what you are looking for in an RV and what kind of amenities you want.
3. Inspect the RV. If possible, look over any motorhome or RV who want to bid on before bidding. Typically, repo RVs are in good condition, but they may still have minor issues. Note any necessary repairs and subtract the cost from your bidding price. If you aren’t allowed to inspect the RV, subtract 5%-15% for needed minor repairs. Also, check the policy about major problems. You may have 1-3 days for an inspection before your purchase is finalized.
4. Bid wisely. Always keep your maximum bid in mind so that you don’t overbid at an RV Repo Auction. Keep your emotions in check and remember that there will be other RVs if you don’t get the first one you like.
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