Are you aware that you will be allowed to attend many of the government and police auctions in your area? The police seize thousands of cars and other vehicles every month all across the country due to several different reasons. These vehicles are offered for much lower prices than you would generally pay by going through a car dealership.
Obviously, police auctions are a secret that car dealerships don’t want you to know about. This is because not only is there one less potential customer looking to purchase a vehicle but there is also another bidder competing against him for the cars that are being auctioned.
So why does 90% of the general public buy from car dealerships? Well that’s a good question and I think it comes down to education. People are simply not aware or these government and police vehicle auctions. The government would be ridiculed is they spent money on advertising. Here is a list of advantages and disadvantages in buying at these auctions:
Advantages:
- They’re offered at much lower prices than anywhere else
- No matter where you live, there are typically many auctions held around your area
- Information regarding government and police auctions with vehicle listing detail is now available on the web
- There is usually a wide selection of vehicles that can be found at government auctions – sports cars, SUV’s, pick up trucks, motorcycles, jeeps, etc.
- no distribution channel (car dealership) to go through or to pay
- No commissioned salesperson to have 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
- Possible advantages to income taxes (establish a business name)
- Usually pay less car taxes
- Start your own business (i.e. Sell cars on the Internet)
Disadvantages:
- You’ll probably have to pay it all in cash (which for some is a blessing)
- No extended warranty beyond what the manufacturer offers. Most used dealerships give only 30 days
So if you don’t mind paying cash, or have access to credit, then it’s obvious that the pros far out-weigh the cons in favour of government and police auctions. Just as with a used car dealership it is a good idea to bring someone with you who can inspect and determine the vehicles condition.
The author is currently researching Night Vision Goggles and other spy gear, as well as the hobby of Family Tree Searches for upcoming review articles.