1. Used RV dealers sell bank repossessed RVs on their lots.
They go to repo auctions to find cheap RVs that they can offer for low prices to attract business to their dealerships. They are looking for ones that will not take a lot of work to fix up like new that they can then mark up 30-40% for a tidy profit.
2. Not all repossessed RVs are old and in poor condition.
Many times it is the more expensive and newer RVs that end up repossessed because the owner could not keep up with the high monthly payments and could not sell the RV for enough to pay back what was left of the loan. While there are older motorhomes and those that have been heavily-used, plenty are newer with all the great features you want. This is one of the reasons dealers can easily make a nice profit reselling them. If you pick the right ones, they do not take that much to fix up.
3. Many repo auctions are open to the public.
While some auctions are invitation-only or open only to licensed dealers, there are plenty of public auctions. Usually you just need to be 18 and able to show a current and valid photo I.D. to register to bid.
Dealers do not want you to find out about these events and buy bank repossessed RVs on your own because they want you to pay their markup for the same RV on their lot instead.
4. It is not complicated to buy an RV at auction.
There are different procedures for different types of auctions, but generally you just need to register to bid and place your bid(s) when the bidding on that RV is going on. If you end up the highest bidder, you win the RV and will then finalize the purchase.