Government Seized Car Auctions

If you are like me, then you are constantly looking for ways to save your hard-earned money, especially when it comes to major expenses like an automobile. Take into consideration the depreciation of a vehicle, no one should purchase a car without doing some homework and price comparision first. The Internet has become one of the greatest tools available to buyers when shopping for the best deal around. Lately it’s become more popular for consumers to purchase vehicles from government held auctions. The first time I went to an auction I was totally blown away at the prices these vehicles were selling for. These were not old jalopies with leaking motors and dilapidated interiors. These were late model SUVs, Sports Cars, Luxury Vehicles and Exotics that were selling for 95% less than the fair market price. In my state, there were hundreds of vehicles, all makes and models with clean titles. It’s no wonder these auctions have become so popular to consumers.

Everyday, thousands of vehicles become government and bank property through various seizure, forfieture and surplus laws. Obviously, government agencies such as the DEA, IRS and Police accumulate huge amounts of property each year due to criminal activities. But did you know that banking institutions are constantly repossessing property due to loan and lease defaults? With the recent economic down turn, bank “repos” and managing these inventories have become an enormous burden on these loan establishments. These inventories are quickly liquidated and sold at government sponsored auctions for ridiculous prices. In fact, car dealers purchase these cars and sell them for a huge profit. These auctions have become a protected source of revenue for the majority of dealerships and are not advertised to the general public. The simple fact is that many people don’t have any idea that they can purchase cars this way so they lose money paying highly inflated prices to car dealerships. Many people think that these auctions are only available to licensed dealers but this is not the case.

There are local auctions held in just about every state and region. Get to the auctions early so you can spend time looking at the vehicles for sale. Many auctions will offer a Carfax VIN report before you start bidding. If you are bidding online or have wireless access you can check the VIN through Carfax and obtain the vehicle history yourself. I also recommend checking the Kelly Blue Book value so you know how much to bid. Again, if you have access to the Internet, this should be fairly easy to do. Most of the auctions will start at a $100 and go to the highest bidder. You will find that nearly all of these vehicles are late models that will be in showroom condition. If you do find damages it should be nothing more than cosmetic and this is due to the method it was acquired. These are not salvaged autos and are garanteed to have clean titles. If you are not mechanically inclined, you may want to take someone with you that can inspect the vehicle and evaluate its condition.

It’s a good idea to secure your financing before you go; however, most auctions will have financing options available. You will not be required to pay a luxury tax or any dealer-added fee like you would at a dealership, but you will be responsible for standard fees such as title, registration, license, tax, etc. To participate in your local auction, you will have to pre-register. This can be easily done through websites that offer this service.

Government seized car auctions are one of the best ways to save thousands of dollars on your next vehicle purchase. There are several government seized auction sites on the web, but be cautious when making your selection because some have stale information and are nothing more than registration services. Do some research and choose a reputable company.