Repo Cars for 90% Off !
Seized Cars for $200 !
Cheap Surplus Cars !
Are these claims true? Government
car auctions.
Repossessed cars and trucks. Surplus vehicles. Sounds like a terrific way to get a
bargain car. How does it work? Are these real deals? Is there a catch?
Government car auctions - In a nutshell
In short, various federal, state, and local government and law enforcement agencies regularly seize the possessions, including autos, of bad people and
auction them off. Or they buy new service vehicles and a
uction off the old ones.These are collectively known as "government auctions."
Banks and lending institutions also
repossess property and automobiles from non-paying customers, and sell the goods through auctions.
These
auctions are real. They take place almost every day in various parts of the country. In most cases, anyone can attend and participate. And it is possible to find
good deals.
Government car auctions - How they work
Government
seized-property or
surplus auctions are held all over the country at various locations and on various schedules. Typically an
auction is held at a particular location on a regular basis — usually monthly or quarterly. Local and national newspapers often have listings and details. Usually these are more than just
car auctions. All kinds of property are included.
Obviously, these government agencies and lending institutions are hoping to get as much money as possible for their goods. But bargains can be had. Otherwise, the auctions wouldn't be as popular as they are and no one would participate.
Do your homework
You should always do your homework before you start bidding for automobiles at car auctions. Know what
vehicle you want, know its value (use Edmunds.com), and knows its history (get a
CarFax report using the car's VIN number).
You should be able to get Vehicle Identification Numbers (VIN) and mileage information from the auction administrators. Further, it's a good idea to have the vehicle(s) inspected by a mechanic, or do it yourself.
Many
auctions have a preview period of about two days preceding the
auction in which you can look over and inspect the
vehicles. However, in most cases, you will not be able to drive the
vehicle. And there are no warranties or guarantees, which is no different than most other
used-car sales.
What's the catch?
As we've already mentioned, there are always some risks in buying at
government or repo car auctions. However, you can significantly lower your risks by knowing what you're doing, knowing about the car(s) you want, researching your pricing, and understanding how the process works.
If there's a "catch" to
government car auctions, it's that there's competition in the bidding. If the car you want is popular and in great condition, you can expect other people, including
used-car dealers in many cases, to be just as interested in it as you are. Competition and heavy b
idding will drive
auction prices up — sometimes beyond the real value of the vehicle. Don't get caught up in the frenzy and overpay. The best bargains are usually on the older less-than-perfect vehicles.
Winning and losing
You must be willing to bid and lose in any kind of
auction. You must also be willing to bid and win, and be prepared to pay or finance within the required time set by the
auction company. You can apply for a pre-approved
used-car loan at your bank or credit union.
You can also lease your
auction car through the services of LeaseCompare. Just give them the information about the car and they'll tell you what it'll cost you to lease it from one of their lease sources.
Ho
w do I find government car auctions?
You have essentially two ways to get started
locating auctions for your
bargain car search. Keep in mind that
car auctions of all types and sizes are held all over the country virtually every day. Be aware that any information you find may be subject to error or change. Try to verify your auction information before you visit.
The first way to find government or
repo auctions is to do all the legwork yourself. Contact your local federal, state, and local government agencies to determine if they have auctions, where they are, and on what schedule. Contact banks and financial institutions for their auctions, if they have them. Contact
auction companies who handle
auctions for banks and other clients.
Some
government auctions are regularly announced in national newspapers (such as USA Today) or local newspapers as part of the legal requirements for conducting the auction. These ads usually regularly appear on a particular day of the week or month. Many
government auctions and sales, both federal and state, are listed on the FirstGov.gov web site, run by the U.S. government.
The second way of finding
government car auctions is through an
online auction directory service that does the legwork for you — for a fee. Fees charged for these services vary, and average about $40. Be sure to look for a money-back guarantee. An example of such a company providing this type of service is
CarAuctionSources.com . There are also other companies that offer similar services.
These services provide
directories of auctions all over the U.S., listing locations, descriptions of goods sold, schedules, and other details.
What to expect
Don't expect a full list of specific
vehicles, descriptions, and prices for each auction because this information changes daily— although some services provide more detail than others.
Be aware that the claims these services make to get your attention are typically more than a little exaggerated. Read their offers carefully to understand exactly what they provide.
Be careful in selecting a service
Look for companies that provide a money-back guarantee in case you are not fully satisfied with their service for any reason. If you choose to go this route, examine and compare a number of services before you choose one. They are not all the same, although they tend to list the same auctions.
Do not pay extra for "premium" services. This is an extra cost that brings no benefits.
One more thing
If you don't plan on taking a mechanic around with you to
government car auctions, or any
car auction, to inspect vehicles, here is an excellent ebook, Inspect Before You Buy, on how to perform the services yourself, with checklists and details of exactly what to look for — and how to do it. It's written by an experienced ASE certified mechanic, Jerry Ellingson.
Click here to get it!
Car Auction
