Anyone who is looking for an RV trailer should consider going through a repo auction to buy one. They can be much more affordable, and you can get a repo RV trailer that is like new for a fraction of its original retail cost.
What Is A Repo?
Unfortunately for many people, repossessions happen. When someone buys a new vehicle, whether it is a car, truck, RV, or an RV trailer, they usually get a loan through a bank, credit union, or other type of lending company to cover their purchase. This is called financing. When a bank owns the vehicle or trailer, you must make your payments. If you do not, they can come and take back their item, or repossess it. They then own the vehicle or trailer, and will want to quickly get rid of it to make a profit. Since there is no one making payments on it, they will want to sell it fast, so they can make money from it.
Bank repo RV sales are very common, as sometimes people simply cannot make their payments on their new trailers. This can be a great advantage for someone who is looking to buy an RV trailer for their RV, but who does not want to spend a lot of money.
How To Find A Repo Trailer
There are a couple of different ways to go about finding a repo RV trailer. The first way is to look for when and where a trailer auction may be taking place. If you can, talk to those who are in the RV industry to see if they can point you in the right direction. A dealership may be able to help you find a repo trailer auction, but be warned - they may not be very helpful. They will instead want you to buy directly from them. If you have a lender on your RV trailer, you may even call them to ask if they know of any repo trailers that they may have, and that they plan on selling. Some bigger banks may be more difficult to deal with. They will not want to admit that they have had to repossess their trailers, so be prepared to do some digging.
You may find it easier to find your repo through local companies and credit unions. Many repossession auctions do occur on a regular basis, perhaps monthly or even more. Also, check to make sure that you do not need a dealer's license to bid on a repossessed RV trailer. While in most states it is not required, it is important to have this information before attempting to go to an auction. Take your time and be prepared to make some calls to find out where you can find repo RV trailer auctions around you.
Repo RV Trailers - Find Them Online
A popular way today of finding RV bank repos is to look online. Many auction sites may have RV repo trailers listed through the lenders or dealers who have taken them back. If you choose this route, be careful about what site you work with. Make sure they are reputable and reliable. eBay is a good place to start. You can also look through online classified ads to find trailers that have been repossessed and are now for sale. If you do this, you will probably want to look for local places, so if you find an RV trailer you like, you can actually check it out in person before buying it.
An important step to buying a repo trailer is to know beforehand the value of the unit that you plan to bid on or purchase. The Kelley Blue Book is a good guide to use to help you find just what the trailer is worth. You may also want to simply observe a couple of auctions before you buy a trailer, to see exactly how things work. You do not want to end up bidding too much for an RV repo trailer, and end up paying too much. Remember, you are taking this route to get the best deal possible, so take your time and do your research first.
A Great Deal
Repossessed RV trailers are an excellent way for buyers to save money. At some auctions, a buyer may save anywhere from 50% to 80% off the retail price. Many new RV trailers are marked up, so the dealer makes an enormous profit, and buyers can lose around 30% of the value just within the first year of owning one.
Many lenders who repossess their trailers are not usually in the business of sales; instead, they are used to lending money out to their customers. They are simply trying to get these repossessions off their lot and make some cash in the process. These deals can then be passed on to those who are looking for a good bargain. You may choose to partake in two different types of auctions. One is the silent auction, which will allow both the buyer and the seller to take a look at the repossessed RV trailer first. They will then submit their sealed bid for the unit. A live auction occurs when buyers will bid against each other at an auction for the same unit.
Before the bidding starts for any trailer, be sure that you make a through inspection of the unit or units that you are considering. If it is not possible to inspect the trailer first, be sure to put some extra money aside in case of possible repairs. However, make sure that whatever auction you choose allows you to inspect your purchase before you actually transfer the funds due to them.