Today, if someone drives a fancy car, it doesn’t necessarily mean the person is wealthy: the luxury vehicle could have been purchased at one of the many regular seized car auctions.
As the name suggests, seized car auctions offer vehicles that have been seized by the government or police due to some illegal activity. In addition to criminals, the cars in repossessed car auctions come from people who didn’t pay their mortgage, didn’t pay taxes, etc. The government’s goal is not to profit from these vehicles, but to get rid of them quickly and avoid storage and maintenance costs.
Seized car auctions, as well as other similar types of auctions, have their own advantages and disadvantages. Knowing them will help you decide if this is the way you want to buy your vehicle.
Advantages of repossessed car auctions
1. Incredibly low initial offer. You can expect 80 and even 90% off, quite a bargain when compared to the retail price.
2. Good condition. Most of the vehicles sold have been in use for no more than 5 years. Very often, there are cars in “near new” condition.
3. History reports available. Ideally, each of these auto auctions will provide free auto fax VIN reports. Also, you can use an Auto Check Vehicle History to make sure the car hasn’t been damaged in an accident.
4. Possibility of finding a rare model. If you’re looking for a particular model, especially a rare or imported one, chances are you’ll find it at such an auction. Also check out online seized car auctions – they have an impressive number of listings so it really isn’t that hard to find what you want.
Disadvantages of seized car auctions
1. Sold “as is”. After purchasing a vehicle, it is impossible to exchange or return it for a refund. Therefore, take the time to assess the condition of the vehicle and check its history.
2. Difficult for beginners. If it’s your first time, a repossessed car auction may seem like a tough place to be. Needless to say, it’s hard to keep up with experienced car dealers. A friend who is not new to impound car auctions would be a great help. Or turn to online auto auctions – they are easier to control the bidding process.
3. Time consuming. Finding seized car auctions in your area, registering, pre-checking, going to one (especially if it’s quite far away), and doing all the necessary paperwork later can take a few weeks. Again, participating in an online auction is easier, although it does involve more risk and worry.
With this knowledge in hand, you are in a better position to purchase a vehicle that is up for auction. For more details on where and how to pick up your dream car at seized car auctions, please read my blog.
