Most of the general public does not realize that are government auctions surplus, seized and forfeited assets daily. This service is funded by your tax money and is free to participate in. There are no buyer fees associated with these government sponsored auctions. These auctions are organized by the General Services Administration , also known as the GSA. This organization has an online database that serves all fifty states on one site. The website is easy to navigate and has organized categories for the types of items being offered. Car auctions make up a good amount of the items being offered. Most of the cars being auctioned are of later models and generally in good condition.
To participate in these auto auctions, you simply just need to create an account on their web site. The process by which you create this account is explained in detail on the GSA website. However, you do not need to have an account to browse all available auctions. If you come across any organizations claiming to be affiliated with government auctions but require a fee, avoid doing business. Your tax money pays for this service, there is no need to pay a middle man for free information. See my resource links at the bottom of the page for the GSA site.
Sunday, September 23, 2007
Saturday, September 8, 2007
Avoiding Auto Auction Disasters
The auction ends and the auctioneer points to you and says "sold"! Your feeling like you just won the lottery and knowingly so, you just saved a few thousand dollars. Or did you? Did you pay close attention to the title? How about a confirmation from the auctioneers that it will pass state inspections? Being informed about the risk associated with what your about to purchase is paramount.
First of all, clean titles are your passageway to an easier transaction. I have attended auctions that had unusual title statuses and liens. Avoid these cars at all possible means. They just are not worth the headache and red tape you will run into when trying to register your vehicle. Auctioneers must legally tell the public before any bid is placed on the state of the title. It can take up to weeks to clear any title issues. And even worse than this scenario is a vehicle that looks, sounds, and seems mechanically stable but has a hidden issue. Its the hassle of having to smog a vehicle if you live in certain states that require emission testing before being issued the title. Believe me, it isn't fun to get a good deal on a car, and then find out it fails smog.
If a vehicle doesn't pass state regulated emission testing, you can end up spending hundreds or even thousands of dollars to get it to pass. A few years ago I caught a good deal at an auction that did not know the status of the emission test. The car cost me $1300 and was excellent mechanically minus a few cosmetic issues. But soon I learned an important lesson in high-risk auctions. The car failed the emission test and to my surprise, it would cost $1000 for a new computer. Now I just bought a car for almost market value and cosmetically its a little trashed. Be sure the auctions you attend are informative and have points of inspection declared.
First of all, clean titles are your passageway to an easier transaction. I have attended auctions that had unusual title statuses and liens. Avoid these cars at all possible means. They just are not worth the headache and red tape you will run into when trying to register your vehicle. Auctioneers must legally tell the public before any bid is placed on the state of the title. It can take up to weeks to clear any title issues. And even worse than this scenario is a vehicle that looks, sounds, and seems mechanically stable but has a hidden issue. Its the hassle of having to smog a vehicle if you live in certain states that require emission testing before being issued the title. Believe me, it isn't fun to get a good deal on a car, and then find out it fails smog.
If a vehicle doesn't pass state regulated emission testing, you can end up spending hundreds or even thousands of dollars to get it to pass. A few years ago I caught a good deal at an auction that did not know the status of the emission test. The car cost me $1300 and was excellent mechanically minus a few cosmetic issues. But soon I learned an important lesson in high-risk auctions. The car failed the emission test and to my surprise, it would cost $1000 for a new computer. Now I just bought a car for almost market value and cosmetically its a little trashed. Be sure the auctions you attend are informative and have points of inspection declared.
Finding Cars for 70% Less Than Market Value
Wouldn't it be nice if you could buy a car for 70% less than its market value? Well, it is possible and in the following article I have written will help direct you to these resources. Everyone has heard about auto auctions, but most people think these events are limited to only dealers or invited participants. The truth is, there are numerous car auctions open to the public just about in any city. I have been participating as a buyer in auctions for about 7 years. Car auctions that are open to the public are generally universal in nature. Basically all the cars that are being auctioned are parked in a large lot for the public to inspect. It doesn't cost anything to view vehicles at an auto auction. Admission to these auto auctions is generally free and would suggest finding another auction if you have to pay to even attend. Some auctions even allow the viewers to start the car and check under the hood. In addition to this inspection, the car will also be driven by the auctioneers for the potential bidders to see how the functions mechanically. For the most part, you get a pretty good idea of what condition the car is in before ever placing a bid.
There are several types of auto auctions, each has there advantages and disadvantages. Depending on your budget or what your willing to spend will lead you to whats best for you. The cheapest of auto auctions are police impounds and salvage title events. These cars range in quality and condition. The majority of these cars either have light cosmetic damage, or where impounded by law enforcement. Also, the auctioneers will clarify any issues with the title of the vehicle during the auction. Things to consider at this type of auction, is how long the vehicle has been off the road and if its worth the investment to repair any damage to the vehicle. The advantage of this type of auction is you can find a good running car for a few hundred dollars. I have auctually seen 2003 model cars that had light front end damage sell for $1200! Impound auctions are where the deals are at because these cars need to sell no matter what price they go for. The state doesn't want to pay for storing these cars, so its a good option if your on a budget.
The higher end of auto auctions are cars that have been classified as being certified. The auctioneers of these types of auctions have points of inspection that they state have passed.Some guarantee the transmission,smog, or other important mechanical factors. Expect to spend a few thousand dollars at these auctions, but the cars are in near mint condition and later models. Most of these car originate from dealerships that have had large numbers of lease returns.
When first ariiving at an auction site, you need to register with the auction company to obtain a bid slip. Its as simple as giving some brief information and show of ID. The only person who can bid and buy the car is the name of the registered bidder. Some auctions require a cash deposit before getting a bid slip. This deposit is 100% refundable in cash if you do not purchase any vehicles. This is done at some auctions so bidders do not bid on cars and then decide they do not want them. Deposits generally never exceed $100. When the auction starts, its just like you see on TV with the fast talking auctioneer. To place a bid, you simply raise your bid ticket and it becomes obvious that you are now the highest bidder. Auctions are very fast and do not take long to go from one car to another. But depending on the number of vehicles offered, expect to spend a few hours at the auction. If an auction is longer this can work to your benefit. Some people do not have the patience to watch 150 cars being auctioned in one afternoon. When an auction is over, you have the option of paying in its entirety, or within a specified time frame. Some fees may be added to vehicles depending what kind of auction it is. All police auctions I have attended usually charge around $25 for processing purposes only. While others can be in the $150-$300 range and rarely some charge percentages of the final sale. Depending on your local laws, you may need to show proof of insurance before taking the vehicle home. This can easily be confirmed looking up government websites or calling city agencies.
This is the easy part. You will be quite surprised how many of these events occur all over the place. Your best bet is to search online using auto auction hubs that have lists by the thousands of daily auctions. These sites make it easy to navigate because each state and city is organized for easy searching. Auto classifieds and the ones you see at the gas stations sometimes have ads of local auctions also. Another quick and easy way to find an auction is to call your local police departments and inquire about impounds. Good Luck!
Types of Auto Auctions
There are several types of auto auctions, each has there advantages and disadvantages. Depending on your budget or what your willing to spend will lead you to whats best for you. The cheapest of auto auctions are police impounds and salvage title events. These cars range in quality and condition. The majority of these cars either have light cosmetic damage, or where impounded by law enforcement. Also, the auctioneers will clarify any issues with the title of the vehicle during the auction. Things to consider at this type of auction, is how long the vehicle has been off the road and if its worth the investment to repair any damage to the vehicle. The advantage of this type of auction is you can find a good running car for a few hundred dollars. I have auctually seen 2003 model cars that had light front end damage sell for $1200! Impound auctions are where the deals are at because these cars need to sell no matter what price they go for. The state doesn't want to pay for storing these cars, so its a good option if your on a budget.
The higher end of auto auctions are cars that have been classified as being certified. The auctioneers of these types of auctions have points of inspection that they state have passed.Some guarantee the transmission,smog, or other important mechanical factors. Expect to spend a few thousand dollars at these auctions, but the cars are in near mint condition and later models. Most of these car originate from dealerships that have had large numbers of lease returns.
Participating in Auto Auctions
When first ariiving at an auction site, you need to register with the auction company to obtain a bid slip. Its as simple as giving some brief information and show of ID. The only person who can bid and buy the car is the name of the registered bidder. Some auctions require a cash deposit before getting a bid slip. This deposit is 100% refundable in cash if you do not purchase any vehicles. This is done at some auctions so bidders do not bid on cars and then decide they do not want them. Deposits generally never exceed $100. When the auction starts, its just like you see on TV with the fast talking auctioneer. To place a bid, you simply raise your bid ticket and it becomes obvious that you are now the highest bidder. Auctions are very fast and do not take long to go from one car to another. But depending on the number of vehicles offered, expect to spend a few hours at the auction. If an auction is longer this can work to your benefit. Some people do not have the patience to watch 150 cars being auctioned in one afternoon. When an auction is over, you have the option of paying in its entirety, or within a specified time frame. Some fees may be added to vehicles depending what kind of auction it is. All police auctions I have attended usually charge around $25 for processing purposes only. While others can be in the $150-$300 range and rarely some charge percentages of the final sale. Depending on your local laws, you may need to show proof of insurance before taking the vehicle home. This can easily be confirmed looking up government websites or calling city agencies.
Finding an Auto Auction
This is the easy part. You will be quite surprised how many of these events occur all over the place. Your best bet is to search online using auto auction hubs that have lists by the thousands of daily auctions. These sites make it easy to navigate because each state and city is organized for easy searching. Auto classifieds and the ones you see at the gas stations sometimes have ads of local auctions also. Another quick and easy way to find an auction is to call your local police departments and inquire about impounds. Good Luck!
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