In the world of vehicle auctions, there are many options for cars that can be bid on, as well as different origins that attract the attention of bidders. And one of the favorites among those who understand the business is the car from a financed auction. 

Due to the financial crisis affecting Brazil and much of the world, many people who had financed vehicles ended up unable to afford the payments. installments and unfortunately ended up losing his cars. 

A car auctioned off from financing is actually called a repossessed car from financing; the name is a bit scary, as it sounds like there was some kind of damage, doesn't it?

But it's really just a name, and probably to your surprise, this type of vehicle is one of the most sought after at auctions across Brazil! 

In today's article, we'll explain what a financed auction car is, whether it's worth bidding on one, and also provide some surprising information. 

So, want to learn more about this type of vehicle? 

The correct term for a car from a financing auction is a car repossessed from financing. 

Although it may seem obvious to some, it may sound a bit strange to others, but it's very simple. 

This type of car is nothing more than a vehicle that has been repossessed by financial institutions as a form of payment for financing debts. 

When someone enters into a secured loan agreement with a bank or financial institution, meaning they finance a car purchase, even though they have direct possession of the vehicle, the car belongs to the institution that provided the loan and will only be transferred to the buyer when the debt is fully paid off, i.e., when the financing ends. 

So, when you choose to financing a vehiclePlease be aware that until all installments of the loan are paid, the vehicle will not belong to you, but rather to the financial institution where you financed your car. 

This is a classic case where the vehicle is under lien! 

It turns out that people often take on debts they are unable to repay. 

In such cases, it is possible that the asset may be retained to offset the amounts owed to the institution. 

And it is precisely from this type of situation, when loan installments are not paid properly, that cars from loan auctions arise. 

An important point to keep in mind is that, although this type of vehicle is "called" a repossessed car, the term "repossessed" has nothing to do with accidents like those of other companies. insurance or damages. 

Yes, but with cars whose original buyers were unable to pay off their debts until the end and had the vehicle repossessed. 

In this way, to recover the investment, the bank or finance company takes the car back and puts it up for auction in order to offset part or recover its loss. 

Generally speaking, cars from financed auctions are in excellent condition.

It's very easy to find this type of vehicle in brand new condition, and best of all, to pay much lower and more affordable prices for them. 

Today at vehicle auctions, the most sought-after vehicles are those repossessed from financing or those from fleets. 

After learning what a financed car auction is, we'll answer another question: Is it worth bidding on a car in this way? 

Now that you know that a car that has been repossessed is one whose original buyer was unable to pay and therefore the institution took it back to mitigate losses, you must be wondering:

Could it be? it is worth it How to win a car at a financing auction?

The answer to that question comes directly from our experts and is a resounding: YES.

Yes, buying a car at a financed auction is VERY worthwhile!

Auctioning cars from foreclosed financing is very advantageous for those who want a quality car combined with investment savings. 

In this type of business, it is possible to find specimens with final values between 30% and 40% according to the Fipe Table.

In this way, it's possible for you to buy a car that came from a financing deal that fell through, is in excellent condition, and is priced well below market value. 

An important and honest point about auctions is that not all vehicles that are auctioned have suffered any kind of damage or accident. 

But if they have suffered any damage, this will be clearly stated in the auction notice, and you will know if there is any damage prior to the purchase. 

As we've already mentioned, this type of car is undoubtedly one of the best options to bid on at an auction! 

If you are one of our readers, you have certainly read in some of our articles that to win a vehicle at auction, you need to pay for it in cash. 

However, for vehicles repossessed from financing at auction, there's an added bonus: it's possible to finance the purchase of that car.

Although it is a possible and even advantageous option to a certain extent, it can be somewhat laborious, since having financing approved requires following certain rules. 

Financing a car from an auction often doesn't become a reality because of the need for a down payment, the lack of a high credit score, and also the increased price, since financing includes interest. 

To be able to finance a repossessed auction car, a number of factors need to be aligned, such as... We show this in this article.! 

So, our experts offer an easier tip:

Yes, look for a car from a financed auction, but try to win it in the conventional way, that is, paying cash! 

This way, the deal is done directly, without any complications, and you don't end up with a payment book that stretches into the distant future, especially if your goal is to resell the car. 

Now that you know what a financed auction car is and that it's really worth bidding on one, you're probably wondering:

But where can I find a repossessed auction car?

Don't worry. 

Our experts are here once again to help you, and they've made a very special selection just for you. 

They teach you the main precautions to take in this type of purchase, the steps to participate in this type of auction, and most importantly: where to find your copy. 

Curious? Want to know more? Just click below!