How to Buy a Repossessed Car in the UK

Summary

• Repossessed cars can be 30-50% cheaper: Banks and finance companies want quick sales, so prices are low.
• You buy them at auction or from dealers: Several UK auction houses sell repossessed vehicles regularly.
• There are risks: You may not get a test drive, and the car's history could be unclear. Always do a car history check.

When someone cannot keep up with their car finance payments, the lender takes the car back. That car then needs to be sold quickly. This is where you can grab a bargain.

But buying a repossessed car is not the same as buying from a dealer. You need to know what you are doing. This guide explains everything.

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What Is a Repossessed Car?

A repossessed car is one that a finance company has taken back from the owner. This happens when the owner stops making payments.

The finance company does not want to keep the car. They want to sell it fast and recover their money. That is why prices are often much lower than the market value.

Repossessed cars are not damaged or faulty. They are normal cars that the previous owner could not afford to keep.

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Where to Find Repossessed Cars

You can find repossessed cars at:

• Car auctions: Companies like Manheim, BCA, and Copart sell repossessed cars every week.
• Online auction sites: Some auctions are now fully online. You can bid from home.
• Finance company sales: Some lenders sell directly through their own websites.
• Used car dealers: Some dealers buy repossessed cars at auction and resell them.

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How the Auction Process Works

1. Register: You need to create an account with the auction house. Bring ID and proof of address.
2. View the cars: Most auctions let you inspect cars before bidding. Check the bodywork, tyres, and interior.
3. Set your budget: Decide your maximum bid before the auction starts. Stick to it.
4. Bid: Bidding is fast. The auctioneer moves quickly. Stay calm and do not get carried away.
5. Pay and collect: If you win, you pay a deposit immediately. You usually have a few days to pay the rest and collect the car.

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Risks of Buying Repossessed Cars

There are some downsides to be aware of:

• No test drive: Most auctions do not allow test drives. You can start the engine but not drive it.
• Limited information: You may not get a full service history or know why the car was repossessed.
• Sold as seen: Auction cars are usually sold with no warranty. If something breaks, it is your problem.
• Hidden problems: The car could have outstanding finance, be stolen, or have been in an accident.

Always run a car history check before you bid. This will reveal outstanding finance, write-off history, and stolen markers.

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How to Protect Yourself

• Do a history check: Check for outstanding finance, stolen markers, and write-off history with a full car history check.
• Check the MOT history: Use the free MOT check to see past test results and mileage readings.
• Inspect the car carefully: Look for signs of damage, rust, or poor repairs.
• Set a firm budget: It is easy to get caught up in the excitement. Know your limit.
• Factor in extra costs: You may need to pay auction fees, delivery, and any repairs.

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Costs and Fees to Expect

Cost	Typical Amount
Buyer's premium	5-10% of sale price
VAT on premium	20% of the premium
Delivery	£100-£300
History check	£10-£30
MOT (if needed)	Up to £54.85

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Is It Worth It?

If you do your homework, buying a repossessed car can save you a lot of money. The key is to check the car's history, inspect it carefully, and set a firm budget.

It is not for everyone. If you want a warranty and a test drive, you are better off buying from a dealer. But if you are happy to take a small risk for a big saving, repossessed cars are worth looking at.

Read our guide to buying a car at auction for more tips.

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