You can buy a bank repo rv for 50% to 80% less than retail value. Once a bank repossesses an rv, they want to sell it as quickly as possible. Ideally, the selling price will cover what remains on the outstanding loan and everything they spent to take it back and store it, but lenders want it sold quickly more than anything else. When they send an rv to auction, they will take whatever the winning bid is, even if it is drastically less than its value.

Many used rv dealers augment their inventory by buying at these bank repo auctions. They just fix them up a little and mark them up to make a nice profit. You can cut out the dealer and save yourself as much as 30% to 40%.

Because bank repossessed rvs sold at auction are typically “as-is,” you do have to be careful about inspecting them first. Fortunately, a lot of motorhomes that get foreclosed on are in great condition. Many of these occur during the first few years of the loan when an owner typically has little equity because the rv depreciated so quickly, about 30% the first year. Because they can’t sell the rv for enough to pay off their loan, many of them let their rv be repossessed.

When you get the opportunity to inspect the rv at the rv repo auction, look over it very thoroughly. Be sure to look for signs of water damage (mold, mildew, soft wall-paneling, saggy ceilings), indications that it was lived in for extended periods (excessively worn upholstery, very high generator hours, higher-than-normal mileage) and faulty systems or appliances (check the heating, cooling, water, fridge, stove, toilet, shower, etc.). A thorough check can help you spot which rvs aren’t worth it no matter how low the price.

Be sure to have a maximum bid in mind for each rv you are interested in. Use guides, local prices, and friendly dealers to get an idea of what a good price is. Subtract the cost of repairs from that amount. Be sure to have your financing arranged in advance because most auctions require all the money either at the end of the auction or within a day or two.