For the first time in Hungary, a privately-owned firm will hold auctions to sell cars whose owners have defaulted on their auto loans, fn.hu reports.
Some 25,000-40,000 used cars are now being repossessed by banks each year in Hungary after their owners fail to meet their leasing contracts.
Tamás Vadas, head of EU Licit Zrt, the company which will be the first in Hungary to specialize in this business, estimated buyers will pay 10%-20% less than the regular market price for such autos.
EU Licit will initially auction leased cars and vehicle fleets only, but it plans to hold weekly standard and online auctions open to the public from April. About 50-70 cars will go on the block at each auction, he said.
Back to horses and trabant’s!
Only in Hungaria will a start-up company make money off of the misery of others. Getting 10 to 20% off for repo cars at an auction? I don’t really think so. This “deal” seems way too Hungarian…
no karman…this is the west.
Go stateside to any major city and find a good deal on repossessed
houses…forget the cars!
go do an online search now, and you will see what Im talking about.
The mentality goes down to pawn shops – desperate people sell
items for next to nothing for the shop to turn around and sell it for
a decent price.
Even the salvation army sells the clothes donated to them.
while we are on the topic of rip offs, or taking advantage of people
- go stateside where you can buy a ‘paper’ house (wood frame and
sheet rock) for more than a house here in Hungary made of bricks.
(over a foot thick in a lot of cases.)
No, on contrary, the west is king of taking advantage of people…its
just ‘prettier how its wrapped up.
Be thankful for what you have here.
Hey, Mickey, I live stateside, Man. Over hwre, a “good deal” for buying some used junker-clunker is NOT getting 10 or 20 percent off of its “regular” price. It would be more like getting 40 to 50 percent off, see? What I was saying, a “good deal” in Hungary would be a “deal” with no takers elsewhere. On the other hand, Hungarians are already paying more for their cars than Zimbabwians do, so why rock the boat, eh?
BTW, people do not SELL anything at any pawn shop, Mike. That is not how the system works. What you do is take your stuff there and you BORROW MONEY AGAINST IT for a short period of time. If you cannot pay the dough+interest back to the shop by the due date, your crap becomes their crap.
Yeah, Goodwill and Salvation Army helps the poor by selling off items donated to them. What does that have to do with AAA going out of the used car biz and EU Licit Zrt coming into it in Hungary?
Now, most Hungarians would surmise that since they ain’t got much, if anything at all, they don’t really have to be happy about it, either. Which is why Hungarians like to bitch, moan, and complain ad nausea, I suppose. With respect to houses, some of the shoddiest constructions I have ever seen was in Hunagry and Romania, Man! You touch the walls inside, and they are like wet sponge! And the stucco on the outside develops mold and fungus within a year or two in a newly constructed home.
Heck, Hungarians even need to import roofing material (shingles) from Canada! Wow!
This is silly, anyone who has looked at car prices in western europe will tell you that used cars are grossy overvalued in hungary, in many cases by up to 40%. So, a 10-20% discount still means the cars cost too much. Protectionism and Quasi legal tarrifs and penalties on imports support an unjust system which stops the markets charging fair prices, and some bull auction front isn’t gonna fix it. I’ve been looking to buy a car for several months, i have the cash and i need the vehicle but it sticks in my throat every time i come to actually making the purchasebecasue i know i am getting screwed.
Exactly right, Gray!! They are now trying to peddle of these recently repossessed junks for “10 to 20 percent off” of God only knows what inflated original price. Since that price would be app. 40% more than the price West of Hungary’s borders would be for the same jalopy, the “lucky finalists” in Hungary would still end up shelling out 20 to 30 percent more for these dubious origin clunkers than they should have to.
I guess one really has to be from someplace else to see these things clearly, however.