Generally, repo RVs cost much cheaper than their NADA values or what they sell for at RV dealerships. Banks and credit unions use websites, auction houses and their own lists to get rid of RVs, trailers and cars they took back.
Be sure to stay within your budget and don’t stretch too far beyond it. This will help you maintain your credit score and eligibility for other loans in the future.
1. Go Through Your Bank
Banks and other lenders sell RVs they've repossessed after someone defaulted on their loan. They're often more willing to cut a deal than private sellers, which is why it's worth checking in with your local or regional banks and credit unions to see what they have to offer.
Depending on the circumstances, the lender may allow you to pay off the outstanding loan in a series of small installments instead of immediately paying it off in full. This can help you avoid the high interest rates and fees that usually come with a debt-financed purchase, and it may also allow you to maintain your credit score while still getting the RV you want.
Check with your local banks to see if they have repo RVs for sale and what auction agency they're selling them through. If you find one you like, be sure to do a thorough inspection and test drive it before making your final decision.
2. Go Through a Credit Union
If you have a credit union, they can offer you an easy way to buy bank-owned RVs. These RVs are often repossessed by the lender after a default, and they can be bought through auctions online or in physical locations.
However, it’s important to know what you’re getting into before you start bidding. Whether buying at an online auction or at a physical location, you’ll want to make sure that you are getting the actual repo RV that you’re looking for. It would be a shame to purchase an RV that is marketed as repossessed but actually has been purchased, fixed, and then sold as a repo for a higher price.
If you’re looking for a real repo, your best option is to get in touch with the lender directly. They will be able to provide you with a list of repos that they are offering for sale. They’ll also be able to answer any questions that you may have about the RVs.
3. Look for Online Lenders
When lenders are looking to get rid of repo RVs, trailers and other vehicles, they will often sell them through online auctions or websites. There are quite a few outfits that handle these sales for the banks and other lenders.
When you go through these auctions, you will probably find the RVs listed at much lower prices than if you went through an RV dealer. That is because these lenders don’t have the large overhead expenses that dealers do.
Before you make an offer, it is a good idea to get preapproved for an RV loan. This will give you a firm understanding of what your loan costs will be, and it will allow you to negotiate with the lender to get a better deal. The process will require a hard credit pull, which can dip your score slightly but is usually temporary. It is also a good idea to do your research and determine which types of loans are available.
4. Look for Repossessed RVs
Repossessed RVs are the most common form of bank-owned campers, motorhomes, 5th wheels and travel trailers. Buyers can find repos online through search engines, auction websites and direct from lenders that are selling them. These units are usually newer or nearly new and in good condition because they were originally purchased with a loan.
The lender is often motivated to sell them because they are trying to get rid of what was essentially bad debt on their books. They also know that if they hold on to them for too long it could impact their ratings and overall value.
When buying repossessed RVs you need to be very careful. Many repo lists have a lot of other junk in them, and if you go to an auction site you are likely to click through a lot of ads that aren't actually repos. Some of these sites are dealers disguised as auctions, and they will add on their own profit margin to the list price.
