What a Repo Car Is
A repossessed vehicle is one taken back by a lender after the previous owner stopped making payments. These cars flow into auctions and are sold to the highest bidder.
Why They're Cheaper
Lenders want to recover their money fast, not maximize profit. That means repo cars often sell below typical retail, which is exactly why buyers are drawn to them.
Condition Varies
Some repo cars are in great shape; others show neglect. This is why the multi-point inspection report matters so much. Never bid without reading it fully.
The Buyer Protections
Reputable auctions provide the inspection report plus a post-delivery inspection window, so you're never stuck with a surprise. Compare that to buying a repo blind from a tow yard - the difference is night and day.