Finance Repos

Volvoboy

At the auctions for a browse today looking at a few nice cars and what not.

On the car list beside them there is reasons why its in the auctions, ex taxi, damaged, private sell. And of course Finance repo. Now heres what kinda turned me off this, yea some people have faced financial hardship over the last year or so, kinda makes you think what you would bid on a finance repo car that some poor bastard worked hard for and got into the red because of it.

It shouldnt matter but it kinda does, profiting off somones bad luck?

I agree. They should give more details about the person, if he was a property developer or something you could bid away

stepbar

Volvoboy wrote: »

At the auctions for a browse today looking at a few nice cars and what not.

On the car list beside them there is reasons why its in the auctions, ex taxi, damaged, private sell. And of course Finance repo. Now heres what kinda turned me off this, yea some people have faced financial hardship over the last year or so, kinda makes you think what you would bid on a finance repo car that some poor bastard worked hard for and got into the red because of it.

It shouldnt matter but it kinda does, profiting off somones bad luck?

There's a difference between working hard and overextending yourself. Sadly working hard (i.e Earning more money to most people) doesn't mean you should keep extending yourself (in terms of credit) as far as your salary will allow.

Ferris

Volvoboy wrote: »

It shouldnt matter but it kinda does, profiting off somones bad luck?

Technically the more the car raises at auction the more of the debt is cleared for the individual concerned so the more bidders the better.

The real profiteers are merlin and formerly, the finance companies imo.

Buford T Justice

Volvoboy wrote: »

At the auctions for a browse today looking at a few nice cars and what not.

On the car list beside them there is reasons why its in the auctions, ex taxi, damaged, private sell. And of course Finance repo. Now heres what kinda turned me off this, yea some people have faced financial hardship over the last year or so, kinda makes you think what you would bid on a finance repo car that some poor bastard worked hard for and got into the red because of it.

It shouldnt matter but it kinda does, profiting off somones bad luck?

A car is a car tbh. Would you think the same if it was a nice house at a reasonable price but put off cos it was a finance repo?

pburns

I wouldn't have any moral qualms. The only car I went seriously into the red for was my first (and it was a 5 year old econobox). If you can't afford to comfortably buy a new/expensive car then buy a €1000 jap box until you can.

A friend of mine with family recently lost his job and is naturally unhappy but he has only a couple of grand tied up in cars that are now paid for and has a nest egg built up that should carry him through.

If you have 30/40/50 grand tied up in a depreciating asset that you can't afford...well...tough **** Paddy... We all like our cars but when push comes to shove a '99 Corolla will get you where you want to go...

Maybe I'm a ba$tard, and I know this doesn't apply to everyone but that's broadly my view.

CJhaughey

There have always been finance repos even back in the the good times.
People started businesses, lost jobs, coldn't make the payments, any number of things and the cars were repossessed.
I bought one back in 02 from a Repo man, strange,strange experience.

Saab Ed

Volvoboy wrote: »

.

Finance repo. Now heres what kinda turned me off this, yea some people have faced financial hardship over the last year or so, kinda makes you think what you would bid on a finance repo car that some poor bastard worked hard for and got into the red because of it.

It shouldnt matter but it kinda does, profiting off somones bad luck?

Page 1 of the Motor Industry Rule Book:

A) Never grow Conscience and Cash is King

mickdw

Dont be so sure that you will get a great bargain on such cars at auction. Its a while since Ive seen a true bargain at Merlin Auctions. Fair enough, if you are interested in a car that might not appeal to a broad range of buyers, you may do well but everyday stuff is now making much nearer retail money than it ever did in the past.... in my opinion.

unkel

pburns wrote: »

If you have 30/40/50 grand tied up in a depreciating asset that you can't afford...well...tough **** Paddy

Have you no compassion at all? Have you no understanding of the current economic climate at all? Look around you at all the 06/07/08 cars that were all at least 30/40/50 grand when new. Most of them were bought with finance by people in decent jobs stimulated to take out a loan by their bank / dealer. Most of the owners are still fine and are still able to meet the monthly repayments no bother.

Thousands and thousands of them are not. They have been made redundant and they can not meet the monthly repayment. Their car was / is / will soon be repossessed. That's the typical car on auction the OP is looking at. No, I don't think anyone buying a car at auction should have any problem with that. It's better for everybody if the car does get sold on the day.

Honestly, I'm glad you are doing fine. I wish those people whose car / home was or will be taken from them were alright too though

Anan1

I was getting up peoples noses here well over three years ago telling them not to buy cars they couldn't pay for up front. http://www.boards.ie/vbulletin/showpost.php?p=51756186&postcount=4 My main concern with a finance repo would be whether it had been properly serviced.

kazul

Saab Ed wrote: »

Cash is King

Tell that to the motor dealers who made millions on finance commission over the last few years, when I was selling we used to turn people from "cash" to finance all the time and make good money doing it. I've very rarely seen somebody whip out a ball of notes for a car worth €10k plus.

unkel

Anan1 wrote: »

I was getting up peoples noses here well over three years ago telling them not to buy cars they couldn't pay for up front.

Of course it is prudent to never take out a loan of money. Of course it is prudent to not buy anything until you have saved up the full purchase price first so you can pay in cash.

In the post-Neanderthal world that doesn't work though, does it, unless you live in Greece and / or your wifes parents supply you with a house paid for in full on your wedding day

The realities here though were that people took out loans to buy cars and they were more than encouraged to do so.

Vertakill

If you took out a small loan to buy a car and lost your job, then you are entitled to the dole immediately and you could refinance the loan or just sell the car. No biggy.

If you took out a massive loan to buy a car and lost your job, then you're an idiot and you've learned a lesson to be more careful with your the bank's money.

As the saying goes, living a champagne lifestyle on a beer income.

At the end of the day, a car is a method of transport and no matter how well you're being paid or how comfortable you are in your job, you cannot predict the future so you've made a bad decision if you belong to the second example.

It's always a wise choice to have some or all of the cash needed to buy a car beforehand and then get the remainder in a loan (with loan insurance) if you must.

So no - no compassion and I wouldn't expect any compassion for me if I my car was reposessed.

Toots

I think I'd feel the same way as you Volvoboy. I may not have before, but a couple of months ago, I saw a woman's car getting repossessed in the car park where I work. It wasn't being repossessed by my employers, (AFAIK it was another finance company) but she's a regular customer in our branch, and all the staff get on really well with her, would have a chat etc.

It was really awful, she had her daughter with her, and they were both just crying etc. It all seemed a bit dodgy to me, cos I didn't realise debt collectors could just come up to you out in public like that and take the car. I think if it was me I'd refuse to give over the keys until I got home and was able to get my kids home too. I work in the dublin suburbs, and this poor woman lives in Arklow! I don't know how she got home.

peking97

Toots* wrote: »

It all seemed a bit dodgy to me, cos I didn't realise debt collectors could just come up to you out in public like that and take the car.

Is that their normal modus operandi? Because if it is it's a disgrace.... unless of course she had been afforded the opportunity of returning it and failed to do so.

pburns

unkel wrote: »

Have you no compassion at all? Have you no understanding of the current economic climate at all? Look around you at all the 06/07/08 cars that were all at least 30/40/50 grand when new. Most of them were bought with finance by people in decent jobs stimulated to take out a loan by their bank / dealer. Most of the owners are still fine and are still able to meet the monthly repayments no bother.

Thousands and thousands of them are not. They have been made redundant and they can not meet the monthly repayment. Their car was / is / will soon be repossessed. That's the typical car on auction the OP is looking at. No, I don't think anyone buying a car at auction should have any problem with that. It's better for everybody if the car does get sold on the day.

Honestly, I'm glad you are doing fine. I wish those people whose car / home was or will be taken from them were alright too though

Maybe you're right, I know i come across badly.

However I've had ample opportunity to spluge big in recent years and didn't (well by and large!). I certainly didn't go into the red to finance a lifestyle I couldn't afford.

I'm just FED UP of people blaming the banks and blaming the government for the mess they're in. And that old acorn about the banks pushing money on people...they pushed money at me as well! Is there no such thing as personal responsibility?

Like I said, one of my best friends is in that archetypal position where he has lost his job, has a large family, a mortgage. But they lived frugally, bought old cars, didn't spluge on big holidays... Now that the rainy day has arrived they have many months breathing space.

Sorry, I have zero sympathty for someone whose lifestyle was financed by easy credit. More fools them.

alias no.9

I'm with Anan on this one, if someone can't afford the payments, did they really fork out for servicing? How is buying a finance repo at auction any different than buying from a private seller at a knocked down price because they need a quick sale? They're still a distressed seller and may well be struggling with finance, just not secured on the car.

unkel

pburns wrote: »

Sorry, I have zero sympathty for someone whose lifestyle was financed by easy credit. More fools them.

But there's the thing. They availed of the easy credit knowing they were well able to pay it off. That was until they lost their job. Who the hell could / would / should have expected the worst recession in nearly 100 years? Maybe you should have some more sympathy.

BTW, I have never had a car loan.

Saab Ed

kazul wrote: »

Tell that to the motor dealers who made millions on finance commission over the last few years, when I was selling we used to turn people from "cash" to finance all the time and make good money doing it. I've very rarely seen somebody whip out a ball of notes for a car worth €10k plus.

Yeah but you wont see to many finance deals getting done at an auction :D

nogoodnamesleft

From personal experience I would have no problems buying a financial repo and I fact I did and am still driving it today. I initially bought the car from a car supermarket and the HPI indicated that there was finance outstanding which was cleared when the car went to auction.

The 1st owner had it for 3 years everything was looked after and fully stamped main dealer history and it had a personalised UK reg plate did little over 30k in the 3years. 2nd owner bought the car on finance from VW Financial Services within 7 months the car was repossessed he initially paid over £10k on it. The finance outstanding was 7,800 and I bought it for 8,400 in 2007. The car luckily didnt need maintenance during the 2nd owners ownership as its required every 10k and I bought it with 39k :-)

I always look used look at these shiny new cars during the boom years (I was in college for most of them ) and used always wonder what percentage the owner actually owned of the car, in reality v very little.

Whats worse some people buying cars didnt have the basic economic sense to calculate what it was actually costing them to buy, run and maintain. Using finance at the garage with grossly inflated APR instead of checking things out. In this situation where people have literally more money than sense is it any surprise that some people are getting their cars repossessed?