Do you want to buy cheap cars? – State car auctions are for you!

So you want to buy a new car but don’t want it to cost you an arm and a leg, well here’s the secret to getting a bargain. Government auto auctions can save you thousands of dollars on your next car purchase. There is a wide range of makes and models ranging from sedans, station wagons, 4x4s and trucks to prestige, vintage, sports and luxury cars.

What is a state car auction?  

These auctions consist of vehicles that have been impounded or repossessed by government agencies such as: e.g.:

  • Internal Revenue Service (IRS)
  • Federal Criminal Police Office (FBI)
  • US Marshals Service (USMS)
  • US Customs Service
  • Small business administration
  • Police/Sheriff Auctions: State and local
  • US Department of Defense
  • US Bankruptcy Court
  • Regional government public auctions
  • US Treasury Department
  • Department of Defense Reuse and Marketing Service (DRMS)
  • Department of Agriculture (USDA)
  • Department of Energy (DOE)

These confiscations and repossessions are the result of criminal or illegal activities, owners who could not make their car repayments, and they also include offenders who have not paid their income taxes and tax evasion as well as crimes. Other government vehicles sold at these auctions include government vehicles that are no longer in use, e.g. B. When government agencies buy a new vehicle to carry out a public service project that is then no longer needed.

Why are these cars being auctioned so cheaply?  

Government auctions work differently than normal retail establishments in that their purpose of sale is not for profit, whereas a car dealer’s sale is aimed at increasing its revenue. The general purpose of the government is to clear their stocks to avoid ongoing storage costs. Because of this, they want a quick sale, which is why you would find vehicles being auctioned off for a fraction of their market value.

How much do these cars cost?

As with all auctions, the savings you can make on a car depends on how many other people are interested in buying it. However, as more prospects bid and drive up the price of the car, don’t let that put you off. You can still save more at auction than you can at a dealership. In fact, I can say that most car dealerships buy their vehicles at these auctions and resell them while making a huge profit. With the current financial crisis, the number of cars being taken back is increasing, so the amount of cars available at auction exceeds the number of bidders in the market. You can buy vehicles for as little as $200, but it really depends on the car you’re looking to buy. Savings can be up to 90% of market value. For example, a 1999 Honda Civic was purchased for $2,050 where the market value was $8,795, a savings of $6,745.

Where to start

  1. First, find a state auto auction in your area. These are not usually advertised publicly, but there are government auto auction services that you can join. They can give you the name, location, phone number and website of auctions in your area. These can sometimes work to your advantage as many people are unaware of the auctions available which can mean fewer people are bidding and you save more.
  2. Second, you need to do some research about the car you are planning to buy. Get a rough idea of ​​how much the car is really worth on the market so you can set a maximum bid to ensure you get the most savings.
  3. Find the car you are interested in at an auction near you
  4. Arrange financing if necessary
  5. Join the auction and inspect the car
  6. Place your bid
  7. make a purchase

Tips:

  • Join the auction early so you can check the condition of the car and see how many other interested buyers might be at the auction.
  • Bring a mechanic or someone who knows how to check the engine etc. of the vehicle
  • Used government/surplus or company vehicles are generally in good condition and are usually well maintained and regularly serviced. They are usually no more than 2-3 years old, making them a great buy.
  • Set a maximum bid limit and stick to it. Remember that cars are impounded every day. So if you are not in a hurry you will definitely find the car you want at a good bargain price.

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