Motorhome Auctions: From Seized or Foreclosed Motorhomes

If you are in the market for a motorhome but don’t want to pay full cost, consider buying from motorhome auctions. Motorhome auctions are actually a bit of a misnomer, as there are few auctions that are dedicated specifically to motorhomes; in most cases, there are vehicle auctions that have large motorhome or RV sections. In addition to on-line auctions like eBay, the primary types of auctions are either police or seized vehicle auctions and foreclosure or bank auctions. In police or seized vehicle auctions, the vehicle has been seized by the police after a court case, usually because it was obtained through illegal earnings or means. In foreclosure or bank auctions, the bank has repossessed the vehicle after payments could not be made. These are also known as motorhome repo auctions.

As with any used vehicle, buying from motorhome auctions brings with it a certain risk. You generally buy the motorhome “as-is”, with no additional warranty or guarantee. And while you can walk through and inspect the motorhome before the auction begins, you cannot test drive it. In states with lemon laws, buyers are afforded a little bit of protection from truly faulty vehicles; however, these vary state to state, so be sure to know your state’s laws before you count on the protection.

The primary advantage to buying from motorhome auctions is cost. Generally, motorhomes bought from auction can be anywhere from 50% to 80% of the original case. Unlike homes at home foreclosure auctions, foreclosed motorhomes tend to be in excellent condition.

A potential disadvantage to buying from auctions is the tendency to get overly emotional or to impulse bid, particularly if you are inexperienced. However, there are several things you can do to ensure that you truly find a good deal at motorhome auctions.

The first thing to do is to attend several auctions before you actually bid. Walk through several motorhomes before the bidding starts and take notes on features, damage, potential repairs, add-ons etc. Then keep track of which motorhomes sell for how much. By doing this you will get a good sense of how auctions work and how much different styles and features generally cost at the auction.

Once you have a good sense of the cost at auctions, determine the features that you want and set a maximum bid price. It is crucial to have a maximum bid set before you arrive at the auctions to ensure that you do not get caught up in the bidding and end up winning something that costs more than you are able or willing to pay.

When you are ready to bid at a motorhome repo auction, try to bring a mechanic with you. Together, walk through the motorhomes before the bidding begins and take note of any repairs or major issues. While you can’t test drive the vehicles, you can turn them on and listen to the engine, etc. This is highly recommended. Be sure to inspect the engine, breaks, the underside, the body, the roof, the heating and cooling elements, all appliances, and check inside cupboards and closets. Another important thing to check is whether or not the motorhome still has the original factory warranty. Remember, you won’t be able to buy a warranty from the auction.

Next, you need to determine the value of the motorhome you wish to bid on. Though you can check Kelly Blue Book or NADA, these are unreliable sources, as they base the value only on the model, year, and mileage. They do not take into account added features or upgrades. To get a better estimate, check RV magazines and listings. Also, be sure to add to your price the cost of any repairs you noted. You should subtract this amount from your maximum bid price to create a new maximum bid. Even if you do not notice any repairs that need to be made, it is a good idea to build in a cushion of 5%-10% for repairs. Also, be sure to factor in auctioneer costs and commissions – usually between 5%-10% of the price of the vehicle.

Finally, shop around. If you don’t see exactly what you are looking for at your first auction, then wait. If you have patience, you will eventually find the motorhome of your dreams for a fraction of the original cost.