Operations

Buying A Repo Limo? Know What To Look For

LCT Staff
Posted on May 13, 2009

LAKE SUCCESS, N.Y. — The economic environment has wreaked havoc on most large, medium, and small limousine operators with few exceptions. What does that mean for those looking to acquire next to new vehicles in today's markets? It means there are deals to be had. But before you go out and buy the first repo that comes up, do your homework.

1) Contact the larger lenders in this arena. You can identify them by contacting the local and national associations.

2) Ask them for an inventory sheet of off lease repossessions.

3) Once you have identified the limousine that suits you, contact their sales manager. When speaking with this person, it is important that they know a little about yourself. Let them know if you need financing and have good credit. If you are interested in a cash purchase, then it is important that they know that also.

4) Have a number in mind that you are looking to offer and start a little lower as this is a sales transaction and open to negotiation.

5) Once your target number has been achieved, make sure you have an independent mechanics inspect the vehicle for proper operation and negotiate any items that you may want changed or repaired.

6) Lastly make sure all details of the transfer are worked out before any checks are written. How is it being delivered? Who is responsible for delivery and bears the cost? Will it be clean and prepped or sold as is? Is there a title waiting clean and free of liens?

The recessionary credit environment is extremely tight, so after the sale, remain in contact with this new lender and they will let you know about other deals that they deem suitable for you. You may have just gotten a deal and started a new relationship.

Source: Eric Coolbaugh, vice president of Advantage Funding

LCT Staff LCT Staff
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