In today’s economy, a lot of times, it is practical to buy second hand cars from first hand owners. There are a lot of people involved in the buy and sell business of second hand cars nowadays. You can view some of them in various online and offline advertisements.
Alternatively, one of the best resource of second hand cars are banks. Since applying car loans from banks is quite easy, people who cannot manage their finances properly end up having their cars repossessed by these banks.
I had an experience working in a company that buys repossessed cars from banks before. For those of you who want to buy repossessed cars from banks, here are some of the things that I can advise you to do:
1. Ask for the OR/CR of the car. Make sure to check the OR and CR of the repossessed car you’re interested to buy. OR is the official receipt while CR is the certificate of registration. Check if it really tallies with the repossessed car you’re buying. In addition, you also need to check when was the last time the car was registered to Land Transportation Office (LTO).
2. Repossessed car inspection. This is definitely the most important step. Banks are selling these repossessed cars on an ‘as-is-where-is’ basis. They are most often stored in banks’ warehouses. With poor maintenance, these cars slowly encounter mechanical problems due to rust. You need to thoroughly inspect it if it’s in tip top working condition. Otherwise, if you found any defects on it, you may need to negotiate with the bank to lower their offered price to factor in the expenses you might have for repair.
3. Deed of Absolute Sale. As soon as you decided to buy the repossessed car that you want, definitely you should be signing a deed of absolute sale as a proof of the sale. You need this document in order to transfer both the OR and CR of the car to your name.
If you are interested in buying repossessed cars from banks and wants to know which car models are available for sale, just go to the website of that bank and view the list. If they don’t have a separate page for repossessed cars for sale, they are on the list of chattels for sale so you might want to check that particular portion of their website.
Alternatively, sometimes, the websites of these banks containing the list of repossessed cars for sale are not updated. In that case, you must verify with the bank and ask them for the updated list.