If you are looking to find second hand items at a good price, you should look for household contents on sale at repo auctions. When a home is repossessed, most of the items in the home are also repossessed and will then be sold on by the financial service provider in order to make back the money that they lost.
These items will often be sold through an auction. Many financial service providers run their own repossessed property or vehicle auctions, but it is very rare that the financial service provider will auction the household goods as well. Generally, the bank will hand the household items over to an auctioneering house who will auction them off for a take in the profits.
What is repossession?
When an individual tries to buy a home or vehicle or any other such large item, they will usually require a significant amount of credit from a financial service provider. Most reputable financial service providers will only give credit to individuals who present little to no risk of non-payment.
If an individual has a steady, reliable income that will cover their essential living costs as well as their monthly loan repayments with interest, and as long as they have a good credit record and a high credit score, the financial service provider should approve the loan and finance whatever item the individual wants to purchase.
However, no-one’s financial situation is completely predictable and reliable. Bad things do happen, and many people find themselves retrenched, with unexpected payments like vehicle repairs, vet bills or medical expenses, and are unable to cover their loan repayments in time, in full or at all.
When this happens, the financial service provider will warn the individual and then, if no payment is made on the loan, the financial service provider will repossess the home, vehicle or any other item that may have been financed by the bank. Often, if a loan was used to pay for something that cannot be repossessed (like university fees) the financial service provider will sometimes repossess other goods in order to make back their lost money.
Why purchase repossessed goods?
If you are looking for well-priced second hand items with which to furnish your own home, your workplace, an organisation like an orphanage or old age home or for any other purpose, repossessed household items could be your best bet. Buying these items will save you money and buying them through an auction means that instead of a seller setting an extortionate price, the potential buyers decide what they are willing to pay.
Where can you find household contents on sale at repo auctions?
Many well-known and lesser known auctioneering houses offer repossessed household contents at their auctions. Some of the companies who may have what you are looking for include Western Cape Auctioneers, Auctioneering, Aucor, Park Village Auctions and several others. You could also contact your financial service provider and ask them where the household content that they repossess is auctioned at.
What if you find yourself in danger of becoming overwhelmed by debt?
If you find yourself in a position where you are becoming overwhelmed by debt and you are worried that you may end up having your possessions repossessed, you should know that there are definite routes to take to resolve your problem. If you have a lot of debt and you feel it slipping out of your control, or if you have recently had an incident which has affected the stability of your finances, you should visit a debt counsellor as soon as possible.
A debt counsellor will then review your situation and if necessary, contact all of your creditors and inform them that you are under debt consolidation. You will then be assisted in coming up with a plan to pay back your debt while living comfortable enough on your income. You will also be given advice on how best to manage your money and your debt in the future.