DETROIT -

AOL Autos recently shared three strategies aimed at making repossessed vehicles more appealing to consumers. The site emphasized that purchasing a repo unit can be a pathway to a more luxurious model from nameplates such as BMW, Jaguar and Cadillac.

“Repos can be a good deal if you are smart and know what the market value of the vehicle is,” Jeff Ostroff, publisher of carbuyingtips.com, told AOL Autos correspondent Gary Hoffman.

The first way Hoffman mentioned was through dealers who specialize in selling repossessed units. One example Hoffman found was Schultz Auto Brokers of Wayne, Mich.

Recently the lot advertised a 2004 Audi A8L Quattro for $10,500, a figure close to $4,000 below the Kelley Blue Book value. The store also promoted a 2002 Jaguar XJR with a $9,500 price tag, again about $4,000 below KBB value.

Hoffman also touched on the opportunity for consumers to buy repo units directly from lenders.

John Kurtz, of the Texas Credit Union League, told AOL Autos that the company sometimes markets its repossessions from branch parking lots with the chance for members to place bids during a several-day span. Kurtz indicated the highest bidder above the minimum can make the purchase.

“Credit unions usually set the sales price to cover the amount owed on the loan,” Kurtz emphasized to Hoffman. “They offer interest rates as low as zero percent on the car, but there is no bargaining on the price.”

One other method Hoffman described was how consumers sometimes can acquire repossessed vehicles directly from an auction.

Jeff Karpinski, general manager of the Greater Detroit Auto Auction in Brownstown, Mich., explained to Hoffman that his operation regularly conducts repossession sales that consumers can attend.

The auction GM told Hoffman that he’s seen plenty of savvy consumers come in and find bargain prices on these units.

“On the bank repossessions, the prices are almost always below Blue Book,” Karpinski said. “That’s just the way the auction formats work.”

Just like the situation dealers face, Karpinski cautioned consumers that they have to navigate through all the necessary title work when they make a purchase.

AOL Autos calculated that 1.8 million vehicles were repossessed last year. Ostroff offered more recommendations to anyone who might be considering a purchase from this vehicle pool with special emphasis on sticking to a budget.

“Because you are taking on additional risk, you want to get the car even cheaper,” Ostroff stressed to Hoffman. “If your bid isn’t accepted, that’s fine. If it is, then you got a really good deal on something that is in your price range.”  

For the complete version of this AOL Autos story, visit this website.