A car is said to be repossessed when a financial institution or the government takes it back because the owner is unable or unwilling to service the vehicle’s debt as per prior agreements.

In most countries, a car can be repossessed at one second past midnight, once the payments are declared overdue. If you have ever watched the movie, the repo man, hen you have a rough idea to what I am talking about.

To answer the question, yes repossessed cars can be resold. In most cases they are resold through auctioning. One can also be able to get such a car at heavily discounted prices owing to the used status that the car now attracts. Again, the price cuts are due to the fact that the repossessing institution simply wants to recoup a fair share of its remaining cost, which sometimes has been substantially paid.

Reposed cars are sold at prices considered friendly to the buyer owing to the consideration that the cars are not sold to make profits but to cover losses undergone by banks or other financial institutions from people who are unable to pay back their bank loans. Sometimes repossessed vehicles are sold or auctioned in huge numbers.

Most repossessed cars are resold within a couple of months. They are then sold at bargain prices. However, cars repossessed by the government are usually sold at significantly reduced prices.

Repossessed cars are easy to sell because one is able to choose a fine car which one has been dreaming for at an affordable cost. Everybody is out to save a coin owing to the prevailing economic conditions. Repossessed cars are sold at car dealerships and at private sales. They are very popular because they are few and can be obtained very cheaply.

Sometimes the banks have no option than to resell the car they have repossessed since the bank will need to evade storing the car or paying for its storage charges, something which increases the institutions losses. In such a case the bank will resell the car at a price usually not worth the entire loan amount, but he bank will consider selling the car rather than holding the car and continue losing money on its storage. This explains why financial institutions are in a hurry to get their losses taken care of and if the bank sells it cheaply, the difference will still be paid by the original owner.

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