Buying a repossessed trailer is a good way to save money on your trailer purchase. You can often purchase repossessed trailers at a 50-80% savings off of the original price. A trailer repossession occurs when a borrower defaults on a loan and the bank takes repossession of the trailer. Repossessions generally occurs within the first several months of ownership, which means that you can frequently find trailers in excellent condition.
The reason that a bank can take repossession of the trailer is because the trailer was put up as collateral on the loan. When the borrower fails to make adequate payments (also know as defaulting), the bank then takes the trailer as payment. Before a bank can repossess a trailer, it must inform the borrower of its intended actions. In addition, it must be clearly stated in the loan agreement that repossession will result in the borrower default. Typically, an outside company charges a fee to perform the repossession for the bank. Whoever executes repossession is legally obliged to leave all property undamaged, and can not take any item other than that which is being repossessed.
Research is an important part of any trailer search, repossessed or otherwise. Before you begin, try to figure out your particular family's needs in a travel trailer. Some things to consider are whether you will use your trailer primarily for summer camping or as a mobile hotel room; Whether you want full amenities, like satellite radio, TV and internet, or simply a place to crash; the number of people who be housed in the trailer; whether or not you will use your trailer as a guest house for out-of-town visitors; and the number of days you will spend in your trailer on any given trip. Make a list of features that you want and prioritize them. Because you will be purchasing some else's customized trailer, and will not have the ability to customize it yourself, you may not be able to find every element that you want in one single trailer.
Your next step will be finding a repossessed trailer. You can purchase repossessed trailers at dealers, but beware that there is often a 30-40% markup, so you will not be getting the best deal. A better choice is to locate a repo auction and attend yourself. To find repo trailer auctions, check websites or call some local lenders. Before bidding on your trailer, do a thorough inspection and set a ceiling bid to ensure that you do not end up paying more than you can afford.