I have been advocating buying used RVs for sale for quite some time now because they are a money saver. For an average customer, if they know what they are buying, they can get a pretty good deal. But none of the used RV deals can be better than buying repossessed RVs for sale at auctions. Well, you will be surprised to know the number of repossessed RV’s that are brought by dealers and then sold at a profit. But buying repossessed is not everyone’s cup of tea. You could get killed just as easily as you could make a killing.
Locating the Auction: With delinquencies increasing as a result of financial turmoil a large number of people have defaulted and banks have ended up with a huge pile of RVs. Keeping them incurs cost as they have to be stored and maintained and banks are just interested in getting rid of them as soon as possible and getting their money out of it. This is because they have to pay the balance to the borrower by law.
These auctions are a frequent occurrence within the tight network of dealers and financial community. But since dealers are the major buyers, they pressure the financial companies to not open it to the public. These options however are open to the public but the information is not widespread. So the first hurdle you will need to cross is finding the auction. Of late some people have made it a business. There are websites which publish a list of auctions of repossessed RVs and you can get some information there.
Inspecting the Vehicle: Once you have located the auction, the next task is to consider which RVs for sale do you want to bid? This is not as simple as it sounds because they will allow you to look and feel the vehicle and even start up its engine.
Firstly there will be a whole line of vehicles lined up for display and sale. You may find fifth wheels for sale, travel trailers for sale and recreational vehicles for sale. So you need to be an expert in all of these to ensure that you can correctly value any RVs for sale.
But you can’t really take it for a test drive. So you must be capable of telling the good RVs for sale from the bad ones without even driving them. This is where the expertise lies. On inspection, you have to quickly consider all the likely cash outflows that the RV will have in the next few years and come up with a valuation figure. This should be the maximum price where you will stop bidding for the RVs for sale.
Looking At the Terms And Conditions: The next step, is to look at the terms and conditions of the auction. What is the reserve price? Who is the minimum amount by which bids need to be raised? Who are the other bidders? Is it likely that they have more information than you do and can therefore ascertain the value of the vehicle better than you can?