Aug
6
There are advantages and disadvantages to purchasing a vehicle at a government or police auction instead of going to a car dealership. Many people don’t realize it, but the police seize thousands vehicles every month and in most cases auction them off to the general public at greatly reduced prices.
Government auctions are a well kept secret that dealerships would rather you not know about. They purchase these vehicles themselves for very low prices and sell them to the rest of the public for good profit. The more consumers become educated about police auctions, the more competition they face at the auction plus car dealerships sales they could potential lose that business.
Yet over 90% of the population still goes to car dealerships to purchase their vehicles. People are simply not aware of the great deals that police auctions have to offer. The government isn’t about to spend any budget publicizing the auctions either. Below is a list of pros of advantages versus disadvantages in buying vehicles at these auctions:
Advantages:
- Business model is much more conducive to lower prices
- Auctions are frequently held in many locations throughout the US and Canada
- Detailed listings of vehicles at government and police auctions are now available on the Internet
- There is a large selection of vehicles that can be found at police auctions including: cars, jeeps, trucks, minivans, ATV’s and more!
- No middle tier channel (middleman) to go through or pay
- No annoying commissioned salesperson to deal with
- Motivated seller who doesn’t have the resources or time to deal with inventory, therefore offering vehicles based on no reserve bidding
- Better income tax advantages (run as a business)
- Usually pay less car taxes
- Once you have an understanding of police auctions, you can start your own business (i.e. Sell cars on eBay or Autotrader.com).
Cons:
- You’ll probably have to pay it all in cash (which for some is a blessing)
- No warranty (although used car dealerships warranties are for short time periods)
If it’s not a problem paying cash, or you can get credit elsewhere, then the advantages outweigh the disadvantages. Just remember to bring a mechanic or car expert who understands vehicles with you to the auction. They will inspect the vehicles that you’re interested in to make sure you get a great deal.
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- Government Auctions - Best Sites to Find the Best Deals - July 30th, 2008
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Article Tags: Vehicles
Category: Vehicles
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