Car auctions are a good place to get a bargain on any type of vehicle. At these auctions, buyers offer bids on the vehicle and it is sold to the buyer with the highest bid. Some of these auctions are open to the public, allowing anyone to attend, while others may be closed. For people who are familiar with cars and know what they are doing, car auctions provide a great way to get a vehicle at bargain price. However, if you lack experience, you could end up making an unwise purchase at an auction.
Sources that were once used exclusively by car dealerships to purchase vehicles at prices up to 95% off the blue book value are now available to the general public. By buying directly from the source, you eliminate the middle man and can save thousands of dollars off the purchase price. You also get rid of the frustration of having to deal with car dealerships or car owners. These sources include: IRS, Banks, State, City, Police, and FBI.
There are many different types of car auctions. Vehicles can be purchased from online auto auctions, wholesale auto auctions, public auto auctions, police and government auctions, bank and insurance auctions and salvage auto auctions. Auctions that are normally open to the general public without any restrictions include online auto auctions, public auto auctions and police and government auctions.
Repo Car Auctions
Repo car auctions can get you some of the best and cheapest car deals around. You can purchase a vehicle for as much as 80% off the retail price. These auctions are very popular with used car dealers because of the great bargains that are available. Once frequented only by car dealers, these auctions are now open for anyone to participate.
Police car auctions
Police car auctions are held to dispose of vehicles confiscated by police because of some violation of the law. These vehicles are sold to the highest bidder and usually sell for a very low price, sometimes for as much as 90% off the retail price of the car.
Seized Car Auctions
Seized car auctions are held by government agencies and the private sector to dispose of vehicles that were acquired because of some form of violation or delinquency. Private sector auctions include vehicles sold by lenders such as banks. Normally, these are vehicles that were repossessed from individuals because of failure to meet their car loan payments. Unlike the state and federal government, these lenders have a commercial interest in the vehicle and want to get the best possible price for it.
A government auction therefore provides a better opportunity to pick up a vehicle at a bargain price. Many of these auctions have a starting bid of as little as $100 and it`s not uncommon for vehicles to be sold for just a few hundred dollars. Government seized auctions include vehicles sold by local, state and federal agencies. These are usually vehicles that were confiscated because of some criminal activity. Some government agencies also dispose of their used government vehicles by way of auction.