subject: Government Auctions May Equal Cheap Prices On Cars: 4 Points To Ponder [print this page] When thinking of government auctions the most likely property that comes to mind is vehicles. Ads in newspapers, on billboards, and along roadsides list government auctions where vehicles will be sold for very discounted prices. Second-hand dealers will use government auctions as a source of used cars, add their commissions and selling expenses, and then offer these vehicles to the public at good prices. Going to government automobile auctions yourself will save these middle-man costs.
*Auctions are a great place to find bargains, however you need to remember that auctions have bidders and you will be competing for the best price. If you find a car that you want, someone else may also want that car. Bidding wars can increase the price, and competition may get so exciting that all parties lose sight of the car's value. You can be left with a car that is priced higher than it is actually worth. Beware of "fun" competition with other bidders.
*Use a check list when bidding on automobiles. You do not want to find the perfect looking car that actually does not run. You are able to start the car, look at the engine, inspect the interior, but there are no provisions to test driving the car before you buy it. You might get a great bargain, or a lemon.
*Police and government auctions are relatively inexpensive because of two basic factors. One factor is that cars are large and storing them is expensive and space consuming. There are hundreds of decommissioned cars, unclaimed impounded cars, and cars seized in crimes or paid with by illegal funds. Government auction lots cannot hold all the cars that are seized for longer than a week or two. Prices are started low to get rid of these vehicles.
*A second factor may be the need for funds. Often the government will give seized automobiles to police agencies to sell, and these agencies use the funds for worthwhile causes. There has been a documented case where funds from the sale of vehicles at auctions go to police benevolent funds, pension funds, and added to city budgets. Auctions are random sources of revenue and the cost of seizing and storing needs to be recovered quickly.
*Vehicles sold in government auctions are listed as "sold as is". Purchasing an automobile at an auction will constitute a risk, but this risk is generally offset by the chance that you received an incredible bargain.
