GOVERNMENT AUTO AUCTIONS: The Advantages.
Government agencies such as the IRS, U.S. Customs Service, Small Business Administration, Department of Defense, U.S. Bankruptcy Court, U.S. Treasury Department, Forestry Department, Department of Agriculture, and many other federal, state and local government agencies dispose of their cars in government auto auctions that you can attend. Buying at a government auto auction takes a little study because it’s part art and part science. However, it can be a great way to buy a quality used car very cheap. Below are some of the advantages you can expect from buying a car at auction.
1. Seller Motivation - While both private sellers and car dealers set out to make as much money as possible from any car they sell, a government auto auction is geared toward simply disposing of as many cars as possible in order to avoid storage and maintenance costs.
2. Starting Price - While dealers and private sellers start with their absolute highest price, cars at a government auto auction have starting bids that are as low as possible, often 80% to 90% below Blue Book prices.
3. Vehicle Condition - Who really knows how a private party maintained his or her car? At a government auto auction you generally know that the cars have not been used more than 5 years and were properly maintained throughout their lives.
4. Unique Selection - Because of government seizure laws, more and more high-end luxury and exotic sports cars are being sold at auction. In addition, it is possible to find many specially equipped work vehicles that are not otherwise through private-party or car dealer sales. Checking on line auction inventories can help you find what you are looking for.
5. Low Pressure - In spite of what may seem like a carnival atmosphere of a government auto auction, you wont be hounded by any salesman to make a deal. No one will sit you in an office while the salesman “checks with his manager.” No finance manager will squeeze you for every last dine. No one will try to sell you needless and expensive options. What you see is what you get (if you want it).
Of course, there are disadvantages too, and I’ll write about those in the next article.
As always, information is your primary ally. Arm yourself with good information before you head out to the auctions and you will find many Great Deals.