Tag Archive | "repossessed vehicles"

Avoid the Repo Man

As the economic slump continues, many people are struggling to make ends meet, and unfortunately, vehicle repossessions are now on the rise. Having a car repossessed hinders more than just a car owner’s mobility; it has a severe impact on credit scores, thereby limiting the ability to get loans or credit cards for up to seven years. The Better Business Bureau (BBB) of Minnesota and North Dakota advises troubled car owners on how to avoid losing their vehicle and their creditworthiness.

According to the American Bankers Association, the number of direct auto loans that were at least 30 days delinquent increased from 2.03 percent to 3.01 percent during the first quarter of 2009, and delinquent auto loans through dealers hit 3.4 percent in March. Perhaps not surprisingly, the number of repossessed vehicles jumped 12 percent to 1.67 million nationally in 2008 and is expected to increase by another 5 percent in 2009, according to Manheim Consulting.

“The worst thing you could do when falling behind on a car payment is to bury your head in the sand and ignore the problem,” said Dana Badgerow, President and CEO of the Better Business Bureau of Minnesota and North Dakota. “To prevent repossession, and the negative effect on personal credit scores, automobile owners have to take responsible action and face the issue head on – otherwise, there is nothing good that will come of the situation.”

As if car owners didn’t need another reason to avoid the repo man, if a lender chooses to sell the car at auction, and it is bought for less than the outstanding loan, the original owner may still be on the hook to pay it back in addition to added fees—essentially paying for a car they no longer own.

The BBB recommends car owners consider taking the following steps when falling behind on car payments:

Contact your lender. According to the American Financial Services Association (AFSA), auto repossessions cost creditors about $8,000. Therefore, the best case scenario for both you and your lender is to keep you in your car and making payments. To that end, lenders will often work with troubled borrowers to develop more agreeable payment plans. Some possible options, according to AFSA, are loan refinancing, extending or deferring payments, changing payment due dates and waiving fees.

Read the entire article on avoiding the Repo Man.

Other stories

Posted in NewsComments (0)

How to succeed at Boat auctions.

by guest contributor Jimmy  Draper

Part 2

As more people are becoming aware of the various types of property auctions taking place all over the country, I thought I would share just a few tips which may help you gain the maximum benefit from your participation.

(Editors note: If after reading these tips you wish to explore some of the boat bargains which can be had at auction, one of the best sources of Boat Auction information can be seen HERE).

Although there are many different types of auctions: surplus property, seized property, creditor auctions, repossessed vehicles – covering every type of property imaginable – household items to vehicles to real estate and everything in between (including my favorite, cheap fishing boats) – some basic tips generally apply.

  1. Read and familiarize yourself with the Terms & Conditions of the Sale. This may sound a little too obvious to even include in this list, but personal experience informs me that it does need to be mentioned. Many people who have attended a few auctions wrongly assume that the Terms are all the same, and therefore do not take the time to read the rules. This can result in unpleasant surprises down the road. For example, is some auctions, if you are the high bidder and then fail to follow through and pay, you may be held in Breach of Contract and you may actually have collections procedures began against YOU. How ironic is this? You go to an auction to find a “deal”, often the result of someone defaulting on a debt, only to find you yourself in Default and vulnerable to legal action.

    So take a few minutes and READ the Terms & Conditions of EVERY auction you attend. They can vary in significant aspects from auction to auction.

  2. Again – a bit obvious, but set an absolute limit on how much you are prepared to pay for a particular item, and stick to it!! Because of the atmosphere at an active auction, it can be easy to get caught up in the moment and end up bidding much more than you had originally planned. In fact, a good auctioneer tries to actually create a “momentum” in the bidding process in which bidders do become committed to winning the bid and the resulting competition results in the highest selling price possible. After all, many Auctioneers are paid on a percentage of the final selling price. So the higher he/she can encourage the bidding, the more income they themselves will make.

    Also be aware of any taxes or fees due on top of your winning bid. Again, a good reason to familiarize yourself with the Terms & Conditions.

  3. Obtain a catalog of items beforehand so that you can research the true value of any items you may be interested in. The Internet and “google” can give you access to incredible tools to help you in this regard. From used electronics, household appliances, coins, stamps, vehicles, ATVs etc. etc., you name it and you can get an idea of market value for any item imaginable.

  4. If possible, physically inspect any item you bid on beforehand. Some Sales provide an opportunity days or weeks beforehand for interested parties to inspect each item. If not, be sure to arrive as early as possible on day of Sale to look at which items you are interested in. Also be aware of any return policies. There are a few auctions, especially in the case of automobiles, where there may be a time period in which faulty property can be returned. But as a general rule, there is no return policy, so buyer beware! But again, refer to tip #1.

  5. Make sure you have the means to collect any items you may be successful in purchasing. Including extra help to lift and load and adequate means of transportation to bring your property home. Also make sure you are prepared to pay by the accepted payment methods stated in the all important, yes you guessed it, Terms & Conditions.

  6. And very importantly, I highly recommend attending several auctions of various types as a spectator only. Go as an observer and take in as much information as you can. Observe how people bid and how the auctioneers try to generate excitement and momentum. Become familiar with the entire process without the pressure or apprehension of bidding. That way when you actually participate for the first time you will be much more comfortable and confident and less likely to make any errors which beginners may be prone to make.

I hope you find this information useful and you use these tips to find your perfect bass fishing boats, or any other item you may be looking for.

(Although I believe in the services I recommend, it is important that you know – if you purchase any products from the link in this post, I will earn a small fee.  Although I would prefer to use it as beer money, I am afraid it will have to go toward maintaining this site and continually updating the information and recommendations therein).

Any comments or suggestions, please send to me at: info@minnesotarepossessions.com

Other stories

Posted in Boats and MarineComments (0)

MN auction inventories

What are you looking for?

We can probably point you in the right direction.
MN used trucks and cars