Pickup trucks are the country’s top choice of transport. While these are easily available in the market, one should consider checking out bank-owned pickup trucks to save money. These are repossessed vehicles seized by the bank when the owner fails to make payments. The vehicles are then sold at a reasonable price—lower than the market price. However, finding the right pickup truck requires careful consideration of its benefits and disadvantages over other options.

Pros of buying repossessed vehicles

Cheaper alternative
Buying a used car will save you a lot of money, as a bank-owned pickup truck will be cheaper to buy with a much lower price than the original showroom price tag. Additionally, you will be able to save money on insurance, fees, and depreciation. A brand new car or truck typically depreciates about 20% when they leave the showroom. Further, a vehicle loses its 10% value during the first year, which adds up to a depreciation of 30% on the cost of the vehicle. Used vehicles depreciate much slower than a brand new car.

Trustworthy seller
Banks offer certified pre-owned cars, where one can rely on the banks for security in terms of legal transactions and legitimate documents. Besides, buyers don’t need to worry about the car being stolen as banks will ensure a secure trade.

Great deal
Opting for a bank-owned pickup truck for sale could mean getting a newer model in near mint condition with a modest number of miles on them. These are usually new cars purchased on loan and could be just 1–3 years old. In most cases, pre-owned cars are under manufacturer warranty, which means the vehicle has been through multiple inspections to meet the quality standards.

Lower insurance cost
Insurance for a vehicle covers aspects such as mileage on the car, the driver’s age, credit score, driving history, and the cost of the car. These are standard aspects in the automotive industry. When one buys a bank-owned pickup truck, the cost of the vehicle is lesser than a new truck, so the cost of insurance would be lower, being proportional to the cost of the vehicle. Similarly, you could incur lower dealership costs which are also calculated based on the selling price.

Great financing options
One can buy a bank-owned pickup truck using cash or on loan as banks offer auto loans for repossessed vehicles at a discounted rate for buyers with good credit history. Banks are usually eager to make a quick sale before the price of the automobile declines further. Besides, banks don’t burden the buyers to pay a lump sum in the form of a down payment.

Cons of buying repossessed vehicles

Limited choice
You may have had your eye on a specific model, but the chances of finding the exact vehicle with the specifications you want are slim when opting for repossessed pickups. When buying a bank-owned pickup truck, you may have to make do with what’s available and make a fitting choice for yourself.

Requires time and effort
Buying a bank-owned pickup truck can be a long process as you might have to invest time in research, the bidding process, and inspection. Try not to get discouraged with just your first bid; it could take a few bids at car auctions till you submit the right amount.

Uncertainty regarding overall condition
The condition of a pre-owned vehicle essentially depends on the previous driver and how they took care of the car. So, ensure you have a mechanical inspection or routine maintenance check before paying for the vehicle. However, this can be conducted only if the bank permits the check.

No test drive
While selling pickup trucks owned by the bank, test drives might not be an option extended to the potential buyer, making it an obstacle for the customer. Many would not want to go for an expensive purchase like that of an automobile without being well-acquanited with the vehicle’s mechanics. Nevertheless, you should always request a test drive.

To avoid being caught off guard, read the fine print as it could save you thousands of dollars and potential legal complexities. Read the contract carefully and watch out for the program’s extended warranty covers to know what is excluded. Some extended warranty claims could be subject to cash deductibles, and other limitations could be a part of the contract.

Finding bank-owned pickup trucks for sale
If you’re looking to buy a repossessed pickup truck, you can check your preferred search engine by typing in “bank-owned pickup trucks near me”. You should get a list of car auctions, banks and credit union repo listings, and other used car dealers. The listings would differ for every zip code, and so would the vehicle prices, warranty, and insurance costs associated with the automobiles. These listings can offer details and specifications of the vehicle. You should try inspecting the vehicle in person before committing to the purchase.