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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:

Pros:

– Business model is much more conducive to lower prices

– Auctions are frequently held in many locations throughout the US and Canada

– Detailed listings of vehicles at government and police auctions are now available on the Internet

– Typically there is a wide selection of vehicles (i.e. could find a BWM, Jeep, Porsche and Chevy at one auction)

– No middle tier channel (middleman) to go through or 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

– Better income tax advantage (can be set up as a business for resale to spouse, kids etc.)

– Car taxes are typically less

– Once you understand process you can do as a side business (i.e sale cars in Autotrader.com or eBay)

Disadvantages:

– Most of the sales are cash only (any credit would have to be done externally)

– No extended warranty beyond what the manufacturer offers. Most used dealerships give only 30 days

If you don’t mind paying cash for a near new vehicle, then the advantages obviously outweigh the disadvantages. Don’t forget to have someone with you who understands vehicles to inspect the ones you’re interested in.

Posted under Government Liquidation Auction