The used car market has grown tremendously over the years. Buying a vehicle, whether it is new, second-hand or mileage 0, is not always an easy decision; and it is that each of these options incorporates a series of advantages and disadvantages. For this reason, each of them must be evaluated to know what is best for each one.
When buying a second-hand vehicle, you may be thinking of acquiring a repossessed car; since its price is really attractive in most cases. In addition, you can also find yourself in the situation that you are trying to sell a repossessed vehicle, but do not know if it is possible to do so since it is a vehicle with loads.
For this reason, below we are going to explain everything you need to know regarding the purchase and sale of repossessed vehicles, so that you can answer any questions you may have about it.
Why is a car repossessed?
When a car is repossessed, the reasons for this can be multiple, although it is necessary to differentiate between two types of situations. On the one hand, we find ourselves when this embargo is given by a public body and when it is done by an individual.
In most cases, the embargo is given by a debt of the owner with the Tax Agency, the court, the town hall or social security. These are governed by the General Collection Law.
The embargo is a preventive annotation that declares an organism or judge that consists of retaining some goods as guarantee of payment of some debts contracted.
When it comes to repossessing a car, there are several aspects that must be taken into account, and they are the following:
- With a repossessed vehicle it is possible to circulate, since it does not prevent you from being able to circulate freely in any territory, national or community.
- In the face of the police, it does not matter if the vehicle is impounded. Even if they know about the embargo, the agents won’t tell you anything for continuing to use it.
- A repossessed vehicle can be insured, just like any other.
- The seized vehicle can pass the Technical Vehicle Inspection (ITV) normally.
- It is possible to buy and sell a repossessed vehicle. However, the General Directorate of Traffic (DGT) will notify the buyer that the vehicle is not free of charges; and they will make you sign a document whereby there is evidence that the new owner is aware of the embargo.
How to know if a car is repossessed
Before buying or selling a vehicle, it is important to make sure that the vehicle is free of charges, something that you will know if you are the seller. To be able to find out about the situation of the car we have two different options:
- Vehicle report from the Directorate General of Traffic (DGT).
- Informative note on motor vehicles from the Personal Property Registry.
Is it interesting to buy a repossessed car?
There are those who doubt whether it is really interesting to buy a repossessed car. In this case, everything is something very personal. Although the ideal is to find a vehicle free of charges to avoid future cost overruns, the really low price or the fact that it is an exclusive model, may make us willing to assume the cancellation of existing charges on the car.
The important thing in any case is to know the aforementioned loads that weigh on the car; and these will help you when negotiating with the seller. For this reason, it is always advisable to request the vehicle report from the DGT. For less than 10 euros you can save yourself later problems.
Likewise, it is necessary to know that the seizure notes in the Registry expire. If the attachment entry is not renewed after four years, it expires. Therefore, in these cases you can request the cancellation of the embargo. To do this, you will have to go to the Movable Property Registry of the province in which the authority in charge of having issued said embargo is located.
How to buy a repossessed vehicle?
Being aware that a vehicle is repossessed, you have two options to choose from. On the one hand, you can require the seller to settle outstanding debts before the purchase; and the second, be yourself the one who takes charge of the situation of the embargo. However, in this case you will have to face the additional costs.
For this you will have to take the documentation to Traffic to transfer the papers, where they will warn you of the loads that weigh on the car.
How to sell a repossessed vehicle?
In the event that you want to know how to sell a repossessed vehicle, the first thing you have to do is value the vehicle. In this way you will be able to know how much money you can ask for it and know if it compensates you financially.
Unless you reach an agreement with the buyer, to sell you must allocate part of the sale to remove the lien that weighs on the vehicle; and this must be reflected in a contract.
