Today’s economic times are a bit uncertain and the number of trailer repos and foreclosures are increasing. Most people recognize that this is a great time to be a buyer. Buying a trailer repo can be a great way to save money.
As we all know, new trailers are not always a great deal. Typical mark ups on RVs and trailers are between 30% and 60%, with the average mark up being around 40%. If you buy a new trailer, you will lose as mush as 30% of its value in the first year. For this reason we recommend buying used and trying to avoid buying at dealerships when it is possible. 9 times out of 10, it is a better deal to buy trailers private party or as a bank trailer repo.
Finding a Repo Trailer There are several ways to find good repo trailers at auction. The 1st step is to find out where and when these trailer auctions take place. Talk to as many people in your local RV industry that are in the business of buying and selling trailers. (Some will be helpful and some won’t.) There is a good chance savvy buyers and dealerships know where and when regular trailer auctions take place. Another idea is to contact your local lender (on your trailer) and ask them if they have any repo trailers they will soon be selling. Most big banks are harder to work with, most will not want to admit, they have trailers in foreclosure. You may have as easier time working with local banks and credit unions that lend on trailers. Once you make friends with the local rv dealer finance department, they will be happy to tell you which local institution lend money on trailers.
How to buy trailer repos The first step to buying a repo trailer at an auction is to know in advance the value of the unit you are bidding on. You can use value guides such as the NADA and Kelley blue book to help you approximate value. (You may also want to go to a few trailer auctions before actually buying to learn what things are selling for and more about how repo trailers are sold.) The worse thing to do at a trailer auction is to bid to much. This is why if is important to be focused and set in advance a ceiling bid for the maximum amount are willing to bid you the bank repo trailer. Also don’t get emotional about any trailer as this can also cause you to overbid.
Before bidding on a used repo trailer, make sure inspect the unit. Our site listed below has more info on trailer inspection. Anything repairs that you will have to make will need to be deducted from max price you would otherwise pay. In some cases, it is not always possible to inspect the trailer before you buy it. If so, factor in a contingency, usually 10-15% for possible repairs. Make sure that the auction allows you time to inspect the trailer after auction before you transfer funds to then.