Top 5 Drawbacks of Buying a Repossessed Car

Top 5 Drawbacks of Buying a Repossessed Car

Updated on June 11 2024

You probably know the many benefits of buying a repossessed vehicle. But are you aware there are certain disadvantages to consider? When searching for a car, buyers turn to used and repossessed cars for a reason, but there are important considerations to keep in mind before making that big decision.

What is a repossessed car?

Buyers who purchase a new car can either pay in cash or take a car loan from the bank. If you pay in cash, the car is officially yours when you drive off the dealership lot. However, things are not so simple if you have a car loan.

The vehicle won’t be yours until you pay off the balance, and the car can get repossessed by the bank if the buyer cannot keep up with monthly loan payments.

In other words, a repossessed car is a vehicle taken back by the bank from its initial owner. Automart has partnered with local Philippine banks to sell those repossessed cars.

What are the advantages of repossessed vehicles?

The main benefits of buying a repossessed vehicle are lower prices, legit vehicle titles, and a varied selection of newer model cars. You can learn more about the advantages and benefits of repossessed cars here.

However, are you aware of the disadvantages of buying a used or repossessed vehicle?

Top 5 Drawbacks of Buying a Repossessed Car

Drawback 1: As is, where is condition.

Some people treat their cars like garage queens, but not all car buyers are like that. When buying a repossessed car, what you see is what you get. Although the vehicle is relatively new (with low mileages to boot), it’s natural for repossessed vehicles to have minor imperfections like mild scratches, small dents, or bumps on the bodywork.

Drawback 2: Most repossessed vehicles are dirty.

And we mean it literally. Banks will typically have hundreds of repossessed vehicles in various lots and warehouses, and most cars spend weeks or months sitting inside these warehouses. And you know what happens when a vehicle’s been sitting unattended for quite a while: It gets dirty!

But then again, the dust and dirt are superficial. When inspecting a repossessed car from Automart, pay closer attention to the bodywork condition than obsessing over the vehicle’s lack of cleanliness.

Drawback 3: No test drives are allowed.

Yes, you cannot test drive a repossessed car, and there’s a valid reason for that. The banks will not be happy if the vehicles acquire more mileage in the odometer from customer test drives, further lowering the car's value.

However, you can start the engine, turn on the air-conditioning, and inspect the vehicle all you want before purchasing it.

Drawback 4: It takes a lot of effort to shop for a repossessed car.

Automart makes it easier to search for repossessed vehicles from its growing bank partners in the Philippines. But due to the vast array of makes and models made available each week, some car buyers may find it tricky to find the car they want.

But don’t fret. With Automart, you can browse hundreds of high-quality repossessed cars with low mileage. Automart’s used car warehouses are expanding as we speak, and you can easily find the best used and repossessed cars from all over the country like Quezon City, Bulacan, Makati, Cavite, Batangas, Laguna, Paranaque, Cebu, Davao, Bacolod, Palawan, and Cagayan De Oro City.

Drawback 5: You need to place your bid (or you can buy now).

Placing a bid is not necessarily a drawback if you plan to buy repossessed vehicles in bulk (and resell the cars). But for some buyers who don’t have the time and inclination to undergo the bidding process, Automart allows you to Buy Now instead of placing a bid.

No doubt, repossessed vehicles offer plenty of value for money, but consider the drawbacks mentioned above before taking the plunge.