Automotive Confiscated Market
"A car is not a luxury, but a means of transportation"- says the well-known proverb. Here are just a modern Ukrainian reality makes you seriously think about its relevance in our time. Constantly rising prices for petroleum products, fuel and lubricants, constantly increasing government fees, the need to purchase insurance policies, expensive maintenance and high interest rates of banks on car loans - these are just some of the costs that a potential motorist will have to face.
Despite all this, those who want to buy a four-wheeled friend in our country are more than enough. For many years, the automotive market in Ukraine has demonstrated stable and impressive sales growth in all classes of vehicles. However, for many such an acquisition turned out to be rash or premature - especially for those who took their cars on credit. However, this article is not about those who have lost a car, not having coped with credit obligations, but about those who are looking for happiness in buying thoseconfiscated cars.
The Ukrainian automotive confiscated market began its rapid growth relatively recently - after the onset of the global economic crisis, in late 2008. Since then, the country's secondary car market has increasingly increased the share of confiscated cars in it. The harsh truth is that according to statisticsabout 20 %previously purchased car loans returned to banks. So, a huge number of used cars will have to look for new owners.
Perhaps this is not so obvious, but the bank is not very interested in returning the car to its property - according to the plan, it is much more profitable for it to receive a full refund of the value from the borrower, so confiscation is made only from the most malicious defaulters. It would seem, after all, having returned unpaid cars to their property, the bank is not particularly interested in storing them in the parking lot and can make a very profitable offer on the secondary market, but not everything is so simple. But first things first.
So, you heard about the saleconfiscatedand very attractive offers in this market. Where to look for such cars?
Firstly, on the websites of the banks themselves.Recently, on the website of almost any large car loan bank, convenient catalogers have appeared (with various filters, even territorial ones) selling confiscated products. Here you can see brief specifications, photos and cost of the car, as well as the name, phone number and email of the person responsible for its sale. Depending on the bank, you may be given the opportunity to personally inspect the car personally, and some banks even bargain.
Secondly, on the sites of specialized auctions, of which a lot has recently appeared. The scale of this market is also evidenced by the fact that the Ministry of Justice of Ukraine has created the official websiteSystems for the sale of confiscated and seized property-. It mainly publishes information on auctions for the sale of property (including cars), forcibly seized from borrowers who have not repaid their loans. On the web you can also find specializedinternet exchangeswhich, as a rule, collect and systematize information on the sale of collateral for all banks.No one has canceled the usual ads in newspapers, on websites, because a bank interested in selling property, resorts to all channels of information dissemination.
And thirdly, an interesting consequence of the rapid growth of the confiscated market in Ukraine was the emergence of small specialized car dealerships that sign contracts with banks for the sale of their stagnant property. This is beneficial primarily for the bank, which thus removes from its brand all the negative associated with the confiscation of movable and immovable property.
So, when the essence and the sales schemes on the auto-confiscation market are already clear, it's time to move on to, perhaps, the main part of the article: considerpros and cons of such purchases.
Let's start with the benefits that can be found when buying a confiscated auto loan. As a rule, most of these machines have a very small age, and a significant part of them are still still under warranty from dealers, which the overwhelming number of proposals in the secondary car market of Ukraine cannot boast. Another advantage is that most of the confiscated cars have already passed the necessary run-in, which revealed possible factory defects, which were eliminated in certified dealer service centers.You can also be firmly sure that all cars confiscated for non-payment of a loan passed all necessary checks, registration, registration and maintenance procedures before buying, since the mechanism for obtaining a loan to buy a car at the bank tightly controls all the above procedures. Another very important advantage can be a very attractive price - indeed, there are some offers with a low price without pitfalls and pitfalls.
And now about the negative sides of buying confiscated cars, which, unfortunately, are also quite a few. To begin with, it is worth noting that, contrary to the numerous expectations of potential owners, prices for car confiscates cannot be called sensationally low, and sometimes they are even overestimated. This is explained by the fact that the bank, selling a car, adds to its value 20% VAT (according to Ukrainian legislation), as well as income tax, expenses that have gone into the storage and maintenance of the car, its assessment, technical examination and a lot of other trifles.
Another cause for concern is that the fact of selling a car can be challenged in court by a former borrower if the bank confiscated it without the knowledge of the owner.There are several reasons for this: the former owner believes that the auction price of the car was underestimated; the spouse of the former owner may also demand that the initial pledge of the loan agreement be canceled, since he did not give consent to it or was not aware or wants to demand a part of the money from the sale as alimony, etc. In theory, there is nothing terrible in such a situation - if everything is done legally, the Civil Code of Ukraine protects the new owner - the old owner bought it can no longer be returned ltsu him and the bank will have to deal with each other. And even if the deal is canceled, the new owner must get his money back. However, this is all in theory. The practice of the work of domestic courts shows that such proceedings can take a lot of time and consequences, which is very unpleasant for all parties to the conflict.
You should be especially careful with cars.seized without the consent of the previous owners. As a rule, in such cases, the bank declares the car to be stolen, and already the traffic police find it and put it at a penalty.This leads to interesting consequences: the bank can easily try to sell such machines without keys, documents and not in the best technical condition, without informing the client.
Finally, we note that despite all the possible negative aspects of acquiring a confiscated car described above, with some persistence and luck, you can find really good offers. However, remember: the lower the price of a car, the more attentive to details it is to be at its acquisition.