It is a sad story, but everyday there are hundreds of motorcycle riders who default on their motorcycle loan repayments leaving their bike to be sold at repo motorcycle auctions. A visit to a repo motorcycle auction is likely to present cycle purchasers with the opportunity to procure a real bargain.
All of the bikes at auction will have been repossessed due to the original purchaser failing to keep up with monthly repayments. Their loss is your gain, as the finance houses sell off these bikes at a very reduced cost, in an attempt to recoup some of the money they originally loaned the owner.
Repo motorcycle auctions feature all types of bikes, from used powersports cycles to exotic ATV vehicles. All of which are presented for inspection before the auction starts, sometimes several days before hand.
Why are bikes located and repossessed?
Bikes are located and repossessed for three reasons. The most common reason for a bike to end up at a repo motorcycle auction is because the original owner, who financed the purchase of the cycle through a bank, has failed to keep up with the repayments. Once this happens, the used motorcycle is then located by a repossession company, and the bank will put it up for sale at a repo motorcycle auction.
The second, much less common reason for a bike to be repossessed is due to the original purchaser supplying false information to the bank at the time of purchase. In this case, the bike is repossessed much more swiftly, and an attempt will be made to negotiate with the retailer to return the bike at a slight loss of price. If this fails, the bike will then be presented at a repo motorcycle auction.
The third reason is a dealership is going out of business and the dealer takes its entire remaining inventory to a repo motorcycle auction to liquid it one by one. This offers a great opportunity to the buyers at the auction.
Is it safe to buy a motorcycle that has been designated for repossession?
Overall it is quite safe buying a repossessed bike, as they will usually be fairly new, certainly less than three years old, and the paperwork will be in order, due to the fact the finance house will have checked out everything before putting the cycle up For auction.
Of course, there is still the possibility that the motorcycle will be in a bad state of mechanical repair, and it is advised that potential purchasers seek the assistance of someone with mechanical know how, before making a decision to bid on a particular motorcycle.
Almost every auction house will have all of the bikes to be auctioned available for viewing and inspection before the auction starts, spend this time checking over the bikes that interest you.
Most large motorcycle auctions allow the buyer to pay using a credit card, this is an excellent way of ensuring your financial transaction is not only secure, but comes with built in protection, as most major credit card companies will pursue any dubious auction house on behalf Of the buyer if the trade is deemed to be unfair.
Buying a used motorcycle from a repo auction can be a very good way to procure an exceptional bike at a bargain price. Modern day auctions are well run, entirely regulated and safe to deal with. All financial transactions are closely monitored and documented, meaning the shady dealings and back room deals associated with auctions in the past is now behind.
Buyers should still exercise an amount of common sense when purchasing a bike from a repo motorcycle auction, although they are now protected far better than they were even ten years ago.