This makes me really happy that I paid off my car last year!

I'm still not sure how people think they can just stop making payments, like if you ignore it, it'll go away. Is this really a case of people still buying things they can't afford? I look at purchases as investments...am I going to regret this if I don't make as much money four months from now, is there a way to get my money back if I get into that situation, and do I actually need it? Health insurance doesn't solve one or two, but I sure need it, so that makes up for not making rules one and two. A new car? Mine is nice, it tuns really well. I don't need a car, can't get my money back, and I'd probably feel like crap about driving a nice new car that I'm plunking $400 a month into if I didn't make $400 more like I used to.

I don't want to buy this car. It smells of failure.

hmm... it is possible for someone to buy one of these repo-ed cars?

Woo Hoo!!! Cheap cars for everyone with cash!!!

Good time to buy a new car, it sounds like. Maybe I can get a repoed BMW on the cheap.

Wishing there were more repo auctions in my area. =(

This is due to the subprime mortgage mess , to an extent, because if you have to choose between paying the mortgage or the car note, guess which bill people skip?

I'm so happy I bought inexpensive, used car with the help of my family (I know nothing when it comes to cars :) Now I own about 2k to the bank, since I paid everything else already.)

I did consider renting or buying new, but it was too pricey. Long term, I wasn't sure if I wanted this kind of burden of monthly payments. Even a good basic car turn out to 400$ per month, once you add everything. (Half a month rent, here in the city).

People who get repossessed are usually the same ones who rack up credit card debt by dozens $K.

I don't understand why banks repo cars so much faster than anything else; they usually take an enormous hit by selling the things at auction and writing off the value gap (because you KNOW someone who didn't make payments on a car they had isn't exactly going to be eager to pay for something they no longer own).

Like the mortgage lenders, these banks need to stop giving away so much high-risk credit and focus on refinancing/rearranging their current accounts with their customers. If someone can't afford a car payment, perhaps it would be worth the lender's time to knock the interest (and therefore payment) down a bit rather than incurring the cost of a repo, selling the car, and charging off the value gap.

Damn, I'm buying a car next week - I'd love to wait though and snag a killer deal.

@Anks329: Repossessed cars are sold at auction, and it is possible to buy them there. You can inspect the cars, but you can't go for a test drive or anything. Knowledge of the Kelley blue book value of whatever you're bidding on is necessary, and you can't be certain of the car's repair/maintenance history, so there is a fair amount of risk. You will be bidding against auto dealers, who know what they are doing.

@Silversmok3: Why people just sell/transfer loan to someone else? There is a lot of websites for that...

Just be aware of a huge hidden cost of buying a repo - trying to buy a replacement key/dongle from the manufacturers' dealerships. Thanks to the anti-theft devices present in the key and/or dongle, you can only get a replacement from the dealer. Prepare to pay hundreds or even thousands (Mercedes comes to mind) for a second key.

The days of a locksmith just cutting a new set of keys or replacing the tumblers is long gone.

Yes but do they come with that "new repossession" smell?

So will this push down prices for used cars?

Yey!!! Bush will bail them out on this one too!!!!! Yey!!! for being irresponsible!!!!

@B: My mom works at an auto-auction in Florida and they had one of those super-fancy Mercedes that looks like the one that Trump has come through. It sold for like a third of what it would have been new. There were no problems with the car--same as with the houses, someone overleveraged themself.

The particular auto auction she works for is only open to dealers (new or used--doesn't matter as long as they have the license) so if you can connect with one of them that could be a way to get your Bimmer.

I thought everyone was using their home ATM machine to buy cars.
So what happens to those cars do they go to auction?
What about Bikes, I am looking to buy a Harley Davidson Bike.

@B: All good advice, but I wouldn't worry as much about the Auto Dealers. A lot of them are falling flat on their face due to low sales which means they already have high inventories. I guess that depends on your market though.

Great, I just bought a new "used" car yesterday from Saturn. The good thing is that my bank's loan percentage was wayyy better than what the dealership was trying to offer me. Plus, I don't have to worry about missing any payments because it will automatically get deducted from my account. If I had to choose between a payment book or auto-pay, then I will definitely choose auto-pay no matter what.

Next thing you know pissed off car owners will be pulling out the oil plug and going for a drive.

So now I can buy a re-po car to drive around on Sundays and tour all of the forclosure open houses? Woopee!!!!

@rbb:

The cars from repo auctions don't come with keys when you buy them? WTF is up with that?

@ekthesy: Typically the repossessing agent doesn't get the key from the borrower, so a new key has to be cut and the locks replaced. And with new cars, they need a new clicker/receiver.

Getting a dealers license in some states is very easy. My grandfather used to have one just so he could by cheap K-cars, at auction, after they stopped making them. He loved the things and wanted to drive nothing else.

i am leasing a toyota sienna from Toyota financial; turns out the car is a lemon, and i am having all sorts of problems... when i spoke to the people at Toyota Financial about getting out of the lease; they told me just to stop paying the lease payments and they will take the car away... of course i didnt want to ruin my credit by doing that... but it is still very interesting suggestion coming from Toyotas bank

I should not be giddy at other people's misfortune. I'm just hoping some money we may be getting this summer comes through, we need a good second commuter car.

what you thought home loans where the only predatory lenders. i had to walk out of the car lot 4 times before they would give me the price i wanted. i wound up cutting my payment more than half.

This was being reported on 1010 winns in NY. The biggest violators.... not surprisingly affluent people living well beyond their means.

@UpsetPanda: maybe they lost a good job that could be replaced in time. there have been a lot of factories laying off in my area. not everyone is living beyond their means. some are just not as fortunate as others.

why do i feel so good about driving my 96 honda prelude?????? oh yeah, its all payed for, gets decent millage and its a honda so repairs are few and far between. :) why anyone would buy a new car i just don't understand....

i got a focus se and had major issues that i am scared to drive over 60... i am really considering giving it back and taking the hit since ford told me good luck and the dealers unless the car is not starting will not do nothing and tell me "could not replicate the problem" or all is good

By no coincidence, USA Today published a story Monday about manufacturers now offering 7-year loans on new cars. Buy a car, four years later you simply MUST have a new car, but you're still upside-down and so you roll the old balance into a new 7-year loan. Repeat a couple times and suddenly you can't afford payments on any car at all.

@lowlight69: 97 Hyundai Elantra owner here, still getting 28 MPG mixed city and highway. All paid off since 2003 (bought used in 2000).

I should ask my cousin who goes to these auctions if there has been an uptick in the sheer number of cars lately.

@ekthesy: If they come from an auto auction for dealers, they do have keys. You can't drive them, but they do have drive the cars through the lanes for dealers to bid. Well, that and to prove they run ;-) They do an inspection by an independent third party who rates the body, details body damage and the interior. You can check that out before the auction on the run lists. Generally the auctions have someone on-site who takes care of the key issue. But again, this is at a bigger dealer-only auction so they have lots of resources.

Dudes, don't get any ideas. A good 75% of the time,Repo'd cars = man-made lemons. The previous owner just up and stopped paying for the car. What makes you think they spent the additional cash to perform regular maintenance?

I should also say that while this auto auction has a lot of repos (their own and dealers') it is not a repo-specific auction.

@chouchou: Because if folks are stupid enough to get their car repoed they usually got a bad deal to start with- upside down on prior vehicle, paid too much than car is worth, etc that the buyers don't want to transfer the loan.

shadow735- traditionally Harleys have held their values such that there is not a mark down on them, alot of folks modify the stock bikes - which actually can reduce the value/price the used purchaser is willing to pay,

and the fact that motorcycles tend to be easier to "get stolen" should the payments get too hard to handle- any noodle head can completely strip a cycle and sell off the parts versus cars which are easier to recover and rebuild.

@redhelix: That is what I thought also. These could be lower on the automobile food chain than rental or leased cars depending on owner.

That said I once saw a car get repo-ed whose owner had just put new tires on it two weeks prior. He was crying about getting the tires off and the policeman who had to be called said tough- unless he had wheels and tires to match right now- he was SOL.

"Into each life, some rain must fall" - Ella Fitzgerald and The Ink Spots

"April Showers Bring May Flowers" - inane saying I've never felt the need to use, much less attribute.

You: I'm not gonna pay my car payment on my BMW 328i, because I have to make the mortgage payment on my subprime loan or I'll lose my house, and really, my job only pays me so much.

Repo Man: Then I'm gonna take your BMW 328i back to the lot, and we're going to sell it for pennies on the dollar. Don't feel bad though. We're gonna come after you for collections and ruin your credit. Oh, and all of your neighbors are having the same problem.

Mercenary Me: I will enjoy buying your lightly used car for pennies on the dollar. I will make the payments, because, I bought for pennies on the dollar. And your tomfoolery has allowed me to buy more car than I could normally afford, but to do it within my budget. Thanks for blazing the trail.

If you're interested in housing, give it a few months and you can work the same thing, only with a bank replacing the repo man.

Sad state. Of education and financial literacy.

Bottom line: Don't play games where you don't know the rules. All of the rules.

sweet, ill be in the used car market soon, hope i can find some cheepness!

@remusrm: Try going to a mechanic other than the one at the dealer. You can try the Mechan-X Files for recommendations for a good mechanic in your area.

Tell them exactly what kind of issues you're having, and if they tell you they can't replicate it, try ANOTHER mechanic.

As the supply / demand equation becomes more favorable for customers, I hope that they really put the screws to dealers that tack on rip off fees (like dealer prep -it's a FUCKING COST OF DOING BUSINESS) and "market adjustment" fees and the like. Hate that folks are losing their wheels , but love seeing dealers lern their manners...

2001 Dodge Neon - paid for 4 yeara
1997 Honda Accord - Paid for cash last week

Never, ever,ever,ever,ever,ever,ever,ever going to finance a car again.

If the motor blows up, i am just going to pay cash to repair it,because now with out a car note i can afford to save!

@Snarkysnake:
When i bought my wife a Honda, i brought in cash, and every markup i didnt like i told em i would leave if they didnt remove it. they wanted $550 for a document fee. I paid cash it was one fucking piece of paper.

@Snarkysnake: Hate those fees too. Just laughed when they tried it the last time I ever will buy a new car (ex-wife's SUV)

@friendlynerd: ...and additionally like an ashtray.

I used to get no end of crap at one place I worked for driving an older econobox that was paid for. The people giving me no end of crap are the type that live way beyond their means. The sweet irony is that those same people are probably facing the financial meltdown of their McCastle mortgage, new car loan and piles of credit card debt.