Car auctions from banks

It’s good to be a wealthy person, to feel like the whole world is in your pocket, to live in a luxurious house and change cars more than once a year. What if you are still far from “high society”, but you want to buy a car, and not as a luxury item, but as a means of transportation? We can solve the issue if we pay attention to the cars pledged by banks , which are sold at quite reasonable prices.

Unlike collateralized real estate, cars are sold easier and faster - the fact is that many borrowers took out a bank loan secured by a vehicle, without risking mortgaging an apartment. The time has come to fulfill your loan obligations, but circumstances have changed, and there is nothing to pay off the debt with. What does the borrower do? Looking for money or selling a car. The third option is that the pledged cars are confiscated by court order and put up for auction. A large number of accumulated non-core assets leads to the fact that the sale of pledged cars is carried out at reduced prices. It is possible that pledged cars will soon be in high demand – the cars are in good condition, and the documents are processed fairly quickly.

A successful deal can be concluded at public auctions, so many future buyers prefer to use collateral exchanges and wait until the moment when collateral cars are sold at the most attractive price for the investor. Simply put, any individual or legal entity has a real chance to choose the desired brand of car within a certain price range. The main advantage of specialized platforms through which cars are sold is the legal purity of the purchase. In addition, it saves time - you do not need to look for banks that sell confiscated goods - you will find almost everything in our catalog.

Sale of pledged cars by Sberbank - how to buy a confiscated car on lease

Not everyone has the opportunity to purchase the required car by immediately giving the seller the full amount of money for movable property. A subsidiary of Sberbank PJSC, Sberbank Leasing, sells seized cars to legal entities and individual enterprises for leasing. It is common for buyers to take out a loan, but in cases of business it is often more profitable to purchase enterprises, equipment, and cars on lease.

Conditions for selling a seized car at Sberbank

The sale of pledged cars by Sberbank or any other bank does not happen by chance. The borrower once took out a loan for a car because he expected that in a few years he would pay off the loan and become the owner of his own car. If the borrower becomes completely insolvent and his guarantor is also unable to pay the loan debt, the property is seized (if it was collateral) and put up for sale or auction. The car is being assessed; practice shows that the price is always below the market price, which is naturally attractive to buyers, since the car has low mileage and is in good condition.

What should you do if you decide to purchase a repossessed car?

Select the car you are interested in in the register of confiscated property on the bank’s website or by contacting the branch.
Specify when and at what time the auction will be held;
Fill out an application at the bank for participation.
Obtain a bidder number from a bank branch;
Pay the state fee;
Register on the electronic trading platform lot-online.ru. At the ETP you will participate in either closed or open bidding. Your price should be higher than the base price. After the winner is determined, time remains to determine the “backup” buyer, in case the first one refuses the deal within 10 days.

If the decision is positive, it is necessary to issue a written request for the issuance of the vehicle and a notarized tender protocol.

After the purchase, unpleasant surprises are possible, for example, it turns out that the car is stolen, there are unpaid taxes or other debt. Also, if the borrower proves that the seizure of the collateral is illegal, he can return his car through the court. Therefore, before conducting a transaction, it is necessary to carefully check all documents.

How to buy a pledged car from Sberbank: necessary documents

To purchase a seized car that is pledged against a loan, you must:

When you first contact the bank, you must take your passport with you.
When you have already chosen a repossessed car, you need to find out the full amount of unpaid monthly payments (amount + interest) and late fees and only then sign an application to pay off all debts on the car.
Execution of an agreement for the purchase and sale of movable property with the obligatory indication of the full amount of the pledged vehicle (the agreement is drawn up only with the consent of the bank, otherwise the operation will be invalid).
When paying off the balance of the car at the cash desk, your name must be indicated on the cash receipt order.
Obtaining a certificate of repayment of the loan in full and closing of the bank account.
Certificate from the unified register of pledges (certifying that the encumbrance has been removed from the vehicle).
Obtaining a technical equipment passport (PTS).
It is necessary to register with the traffic police.

After you have paid off the debt on your own behalf, all you have to do is pay off the debt with the borrower (seller). Before this, we recommend that you take a receipt, and before you receive the PTS, it is better to leave the car in a guarded parking lot to protect yourself from unexpected situations.

Car leasing for legal entities - Sberbank conditions

The following conditions are offered for secured cars from Sberbank, which a legal entity plans to lease:

You can buy a car of foreign and domestic production, for example, Volvo, Audi, Skoda, Volkswagen, Citroen and others.
You can purchase a whole fleet of vehicles or just one car. If the vehicle is intended for the transportation of goods, you can choose a maximum weight of up to 800 kg, for passenger transportation - up to 8 seats.
The leasing agreement can be drawn up for a period of 12-37 months.
The first payment is 10% of the cost and more.
The maximum amount of financing is 24 million rubles.
The client can choose the appropriate schedule:

annuity (equal payments throughout the entire term);
differentiated (the principal payment is the same in amount, and interest decreases monthly as it is accrued on the balance);
decreasing.

The transaction is completed within 1-2 business days.
The car is listed on the balance sheet of either the lessor or the lessee (by agreement).
CASCO and MTPL insurance must be taken out at the Sberbank Leasing insurance company.
The transaction is executed only in Russian rubles.

In order for the bank to approve such a transaction, it is necessary that the business of the legal entity be successful and have a positive balance sheet for more than six months and there are no losses, the enterprise must have sufficient equity capital and, if loans have already been taken out, the credit history must be positive.

Terms of car leasing in Sberbank for individual entrepreneurs

Individual entrepreneurs, as well as legal entities, have the opportunity to lease a car. The only significant difference in the conditions for individual entrepreneurs is that all depreciation costs and vehicle maintenance costs fall on the individual entrepreneur. For an entrepreneur, the package provided will also be slightly different.

In the leasing agreement, it is possible to stipulate a clause on the extension of the “lease” or the purchase of the car at the residual value.

Where to find a catalog of confiscated cars offered for sale

Buying a seized car is quite a good deal. For a client who is faced with such a purchase for the first time, it is clear that the question will arise: how is the sale of confiscated cars carried out, for example, by Sberbank, if he is already a client of this bank or on recommendation. Well, of course, if you haven’t found anything suitable at a particular bank, where can you find an interesting option?

Where to buy repossessed cars

Buying a repossessed car is a pretty attractive proposition. Pledged cars are property that was taken by the bank from the owner due to non-payment of loan debt. Such cars are sold only with the consent of the debtor himself, however, in this case there are many types of fraud.

The sale of such property can be carried out by both the bank and the debtor himself. In any case, the money from the sale goes to pay off debts, and such a car costs several times cheaper than even a used model. If the debtor himself finds a buyer for his car, then the transaction is completely supervised by the bank, since, in fact, he is the owner of this property. This fact is confirmed by a special act of seizure. In order to protect yourself and not stumble upon pitfalls when purchasing, we advise you to protect yourself and contact an auto expert.

How does the purchase of a confiscated car work?

If you want to purchase a confiscated car, then the fact that the banking institution controls the entire transaction will indicate its safety. The bank will provide all the necessary data about the car, documents and allow you to test the car. The advantage is that when buying a mortgaged car through a bank, you can also take out a loan for the purchase, which will be close in type to a mortgage.

Debtors sell confiscated property at prices close to market prices, since the remainder of the amount will be returned after paying off the debt and such a deal is much more profitable for them. Sales through a bank have a forced status and prices are correspondingly cheaper. The legal side of the issue will be fully formalized if the purchase goes through this institution.

Stages of conducting a transaction through a bank

The act of purchase and sale of a car confiscated by a bank must be carried out in full compliance with the law and involve the following stages of the transaction:

Before proceeding with the paperwork, you need to come in person to the bank whose offer interests you and carefully inspect the car. No organization can hide this information from you - you have the right to fully check the car, even at a service station, conduct a test drive and any other assessment operations;
As a rule, most banks in Russia hold special tenders for a confiscated car. In this case, you need to submit an application and make a certain deposit, which will be 100% returned to you if you lose in this auction. If you win, this deposit will be included as part of the payment for the car;
After the auction, the buyer urgently needs to pay for the car in full within the first 10 days or take out a loan for payment, since this operation is quite urgent, because the borrower urgently needs to repay the obligations to the bank.

Pros and cons of buying confiscated goods

Purchasing a car confiscated for non-payment of debts is quite a serious matter and has a lot of positive and negative aspects.

The advantages of purchasing such a car are:

Since such an operation is always supervised by banking institutions, purchasing a car through a bank would be the best option. In this case, you are provided with all the documentation and the transaction is carried out in full compliance with the law;
you can take out a loan from the bank itself to purchase confiscated goods;
you can repurchase the debt obligation from the borrower, which also has a lot of advantages;
confiscated cars are usually much lower in price, and their mileage may be minimal.

You can also highlight the following disadvantages of buying confiscated goods:

often, if the debtor himself carries out the execution of the transaction and offer, he does not set too low prices that can be expected from a confiscated car;
there is a risk of falling for scammers who transfer debt obligations and disappear, or the car ultimately turns out to be faulty - there are a lot of options for fraud in this market.

In any case, if you decide that you want to purchase a car from confiscation, it is recommended to conduct a full check of all participants in the process.

How to protect yourself when buying a confiscated car?

In order not to fall into the trap of scammers, you need to carefully prepare for the transaction:

You need to find out information from the debtor about which car dealership the car was purchased at;
after this, you need to make sure that the salon sold the car to the borrower without loans;
when purchasing, you need to check all the documents on the car for authenticity, since scammers often make very skillful duplicates with a small mark in the corner, which is quite difficult to notice;
you may well look at the seller’s credit history to make sure there are no additional charges on this car;
it is necessary to draw up a contract for the purchase and sale of a car, which will be certified by a notary, confirmed by the bank and have all the necessary clauses. One of these points is the absence of additional interest rates on the car and full repayment of the loan from the bank after its sale;
You should take copies of documents from the car seller so that if something happens you can contact law enforcement agencies.

Where to buy confiscated cars in Russia?

The Russian market for confiscated goods is quite wide. There are a lot of platforms for selling such cars and a large number of different offers.

So where can you buy confiscated goods at affordable prices in the Russian Federation?

on the Internet portals of the banks themselves, which offer pledged cars at cheap prices. There can be sold both those cars that are sold on behalf of the defaulter, and cars for forced sale. For example, the well-known bank Baltic Leasing provides elite, expensive luxury cars at prices ranging from 2.5 to 7 million rubles. Sberbank of Russia provides profitable loans for the purchase of confiscated goods, which in luxury cars varies from 1.5 to 3.8 million rubles. VTB Bank provides excellent cars of various types at prices from 1 to 5 million rubles - for low mileage and excellent condition of the car;
official confiscated websites, such as, for example, konfiskator.com, where there is a convenient search system and you can select any model that is located in your region. This site provides all the information about cars and their owners, being the official portal for the sale and purchase of confiscated goods;
various advertisements on boards, in newspapers and other printed materials, which are also used for more efficient and quick sales;

There are also databases that contain all bank proposals for confiscation, which involve conducting a transaction between the borrower and the buyer without their support.

Buying a confiscated pawned car in Russia is not difficult - there are many sites, auctions and banks that provide favorable conditions for this. Having clearly studied all the pitfalls and prepared for the transaction, you can easily purchase a confiscated car for yourself at the best price!

How to buy a mortgaged car from banks - 5 main stages of purchase + tips on how to avoid fraud

Cars are sold not only by car dealerships and private individuals, but also by banks. Credit institutions sell collateralized vehicles that they received from negligent debtors. Typically, such vehicles are sold at a reduced price.

I, Denis Kuderin, financial expert of HeatherBober magazine, will tell you whether it’s worth buying collateral cars and how to do it correctly .

You will also learn in which cases it is really profitable to purchase confiscated cars, and in which situations it is better to be content with a regular purchase at a car dealership.

Read the entire article - at the end you will find tips that will help you avoid fraud when buying collateral vehicles , plus an overview of reliable banks involved in the sale of such cars.

1. Mortgage cars from banks – to buy or not

Pledged cars are cars confiscated by the bank from the borrower in court for failure to fulfill loan obligations . A car becomes confiscated only after the court has officially announced the deprivation of the previous owner’s rights to the vehicle.

It is also possible for the borrower to assign the debt to another person : as a result of such a transaction, the pledged car also changes its owner.

The procedure takes place with the consent of the bank. This is even beneficial for credit companies - the buyer pays off the problem debt and takes the car for himself . He hands over the rest of the cost to the previous owner.

Are these cars really being sold at a bargain price?

In many situations, yes, the price of transport is lower than the market average. When a borrower urgently needs to pay off a debt, dropping 15-30% of the cost is smarter than continuing to accumulate late fees.

And it is more profitable for banks to quickly get rid of collateral cars: the older the car, the lower its price. The sale and valuation of confiscated cars is initially handled by bailiffs , and it is in their interests to quickly sell the property in order to successfully close the case.

In large cities, banks selling collateral – in our case, vehicles – is a common practice. There are a lot of car loans issued: in 2016 alone, according to the Autostat agency, 379,000 cars .

When buying such a car, you need to make sure that it is a “clean” car, and not a vehicle that has been resold several times (including with fake documents).

There are 2 databases by which the status of a pledged car is checked:

Register of pledges of the Federal Notary Chamber - banks enter all information about issued loans there. There is data both about the car itself (found by VIN code) and information about the borrower. The service is free.
BKI database - credit history bureau. The resource charges a certain fee for searching for information. You can find a car here not only by VIN code, but also by PTS number.

Transactions with collateral cars are quite risky procedures. Even when dealing with a bank, there is a risk of buying a car that is put up for sale without sufficient reason .

If the former owner manages to appeal the decision of the financial company in court, the car will be returned to him - even if you managed to buy it. This is rare, but it still happens.

Another undesirable situation: the buyer pays the borrower’s debt, and the borrower refuses the deal . It will not be easy to get the money back - the bank got what it deserves and will not return these funds.

How to avoid such a risk? First, deal only with people you can trust . Secondly, take a receipt from the borrower - a document certified by a notary, according to which he undertakes to fulfill what he promised.

It is advisable that the text is also drawn up by a professional lawyer so that the document does not have double interpretation.

Another example of fraud

Sometimes a person purchases a secured vehicle without knowing it. He buys a car at a low price using forged documents, not knowing, of course, that they are fake, and along with the car he acquires credit debts .

The bank puts such a vehicle on the wanted list, one fine day you are stopped by traffic police officers, and... The car is confiscated and impounded until the loan and fines are paid in full . Finding the former owner, especially if he is an experienced fraudster, will not be easy.

The price of a car that is too low should alert you: cars with credit debts sold using fake documents are subject to confiscation

By the way, for selling a credit car, owners face a fine of up to 120,000 rubles or imprisonment for up to 2 years.

So, if you decide to purchase a secured vehicle, do it only through legal means, with the obligatory participation of the bank and the preparation of all necessary documents.

2. Why it is profitable to buy mortgaged cars - 3 positive points

Now about the advantages of deals with collateral cars from the buyer’s point of view.

I repeat once again that the purchase will be profitable only if the operation is absolutely official .

Point 1. Legal purity of documents

If the bank legally sells a pledged car, the documents for it will be legally impeccable . Especially if the bank is large and has a staff of professional lawyers.

These people will not allow a financial institution to sell a car that does not have all the paperwork in order. They check and double-check the property through all possible channels.

Point 2. Low price of the car

In most cases, credit cars are new cars with minimal mileage . If the owner wishes to assign his debt, he needs to do this as soon as possible, since penalties for late payments tend to grow like an avalanche.

How to sell faster? That's right, lower the price .

Banks, or rather, bailiffs, are also in a hurry to get rid of collateral vehicles as quickly as possible . If the car does not find buyers at the first auction, at the second and subsequent auctions the price is reduced, sometimes significantly.

Point 3. Possibility of buying out a car loan

Another profitable option is to buy out the loan and transfer it to yourself if the full amount is not available.

In this case, the bank will not lose anything, but on the contrary, it will gain a more solvent client. The borrower will receive a partially paid loan secured by the PTS. As a result, the deal will be beneficial to both parties.

Let's compare buying a new car at a dealership and buying a mortgaged car: