Nowadays, if somebody drives a posh car, it doesn’t necessarily mean that the person is rich – the luxury vehicle might have been bought at one of the numerous seized car auctions held regularly.
As the name suggests, seized car auctions offer vehicles that were seized by the government or the police due to some illegal activity. Apart from criminals, automobiles at repossessed vehicle auctions come from people failed to pay the mortgage, defaulted on tax payments, etc. The goal of the government is not to cash on these vehicles, but rather get rid of them quickly and avoid storage and maintenance expenses.
Seized car auctions as well as other types of similar auctions have their own advantages and disadvantages. Being aware of them will help you decide whether or not this is the way you want to purchase your vehicle.
Advantages of Seized Car Auctions
1. Unbelievably low starting bid. You can expect 80 and even 90% discount – a great bargain if you compare it with the retailer price.
2. Good condition. Most vehicles sold have been in use not more than 5 years. Quite often, there are cars in a “close to new” condition.
3. History reports available. Ideally, every such auto auction will provide free Car Fax VIN reports. Additionally, you can use an Auto Check Vehicle History to make sure that the car was not damaged in an accident.
4. Possibility to find a rare model. If you are on a lookout for a particular model, especially rare or imported one, chances are you will find it at such an auction. Check online seized car auctions as well – they have an impressive number of listings, so it is really not so hard to find what you want.
Disadvantages of Seized Car Auctions
1. Sold “as is”. After acquiring a vehicle, it is impossible to exchange or return it for a refund. Therefore, take time to assess the vehicle’s condition and check its history.
2. Hard for beginners. If you are a first-timer, a repossessed vehicle auction may seem to be a tough place to you. Needless to say, it is difficult to keep up with experienced car dealers. A friend who is not new to seized car auctions would be of great help. Or, turn to online auto auctions – they are easier to control the bidding process.
3. Time consuming. Searching for the seized car auctions in your area, registration, preliminary checking, attending one (especially if it is quite far from your place), and getting all the necessary paperwork done later may take up to a few weeks. Again, participation in an online auction is easier, though involves more risks and concerns.
With these knowledge in hand, you are in a better position to buy a vehicle that is auctioned. For more details on where and how to pick up your dream car from seized car auctions, read up my blog.