Each bank and credit union will have their own unique way of marketing these orphaned vehicles and real estate properties. Generally speaking, most repo sales will begin with an asking price determined by the bank. The price is typically based on the vehicles book value or a recent appraisal. This is the same value guidance banks use in determining how much they’ll lend on a vehicle or home purchase. With bank repo and REO sales, don’t be afraid to offer less. Once the initial price is set the bank will open the door to offers or bids. Everything is priced to sell. In some cases it’s a closed bid, so you don’t see what others have offered. More common though is an open bid where all buyers can see the highest offer and compete with each other. This process is not done in a typical auction setting with an auctioneer. Instead the bank will just have you fill out a form (sometimes online) or give them an offer verbally in person or over the phone. Most lenders will also allow you to do your due diligence and properly inspect the repossessed property prior to bidding. Be very cautious of buying anything site-unseen. Once you agree on a price with the bank the process is fairly straightforward. In some ways, buying a credit union repossession is similar to buying from both a car dealer and a private party. You have the bank assisting you with paperwork and financing (if needed), but you also have the luxury of a commission free environment where you can work out a better price. The banks have absolutely no emotional attachment to these repo’s and have the ability to sell them below what the underlying lien is. more