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Curious If Great Deals On Vehicles Really Exist At Government Auctions? The Truth May Surprise You!
By Nicholas
It is true that auctions can be an excellent source for new and used vehicles at low prices. It is also true finding these deals can be difficult and most government agencies do their best to receive fair market value for these vehicles.

There are three main government agencies that deal with vehicle auctions. These agencies are the treasury department, the US marshal service and the general service administration (GSA). The GSA predominantly sells vehicles that have been used by the park service and the post office. These vehicles have high mileage but most are in great shape because maintenance was conducted like clockwork by the government.

The best chance of finding new vehicles at auctions is through the treasury department and the US marshal service. The treasury department will often receive vehicles that have been repossessed due to back taxes. The best chance of finding brand new sports cars is through the US marshal service. The US marshal service seizes cars from drug raids.

Police auctions are another great source for seized vehicles. When attending a police auction you must bring a photo id. You must always keep your assigned number with you when bidding and you should always carefully read the rules of the auction. You never want to lose a bid because you did not follow a simple rule.

Always be mindful of the condition of the vehicles. Some of the vehicles at police auctions have been sitting at an impound lot for years before finally going to auction. A good rule of thumb to keep in mind is never pay more than the blue book trade in value. The trade in value is typically $3000 to $4000 below market value.

Never ignore the fine print at government auctions. Experts in this field know how to spot a good deal and they also know how to maneuver through all the government red tape. When you purchase a vehicle from a government auction be sure to fill out Form SF97. Form SF97 is a certificate to obtain title. This must be filled out in order to register your vehicle after purchase.

All liens or any other encumbrances on the title are cleared by the government agency unless otherwise stated. It is important to ask and find out what the government agencies title policy is when attending the auction.

One strategy that will help you obtain good vehicles at low prices is to focus on cars that have body problems but have great engines. Some of the vehicles sold through the GSA have body problems but the

engines are in great shape. Not as many people are interested in these vehicles.

One car dealer I know of would buy filthy cars at car auctions and then simply take them to the car wash. Once they were clean he would be able to sell them for $500 to $1000 more. Never underestimate the power emotions play in a bidding war.

Many people claim that no deals exist at these auctions because all of the big car dealers attend these auctions. Many think how could I possibly compete against these big boys. Well the truth is that these dealers need to buy low and sell high to make a profit.

Do not let these car dealers intimidate you. They are looking to make a profit and you are looking to find a good deal on a vehicle for yourself. You can still get a vehicle at these auctions below market price even if you are bidding against dealers. Remember you have the advantage against the dealers.

Before buying any vehicle at auctions you must do proper research. Before going to any government auction bring cash and predetermine how much money you are willing to spend and what type of vehicles you want to focus on. A spending cap is critical. There is nothing worse than getting caught in a heated bidding war and paying more than you planned.

At any government auction you should always inquire about the buyers premium. This is the additional amount you will need to pay once you have won the vehicle. The buyers premium is typically five to ten percent of the purchase price. You should incorporate this into your maximum allowable bid.

When purchasing vehicles from the government you are buying them in as is condition. When possible inspect the vehicle yourself. Inspection times can vary from one hour to two days. Many government auctions have a preview date before the auction where you can ask questions and inspect vehicles. When possible you should run a Carfax vehicle history report.

When doing research on the web regarding government auctions never buy anything that claims to have the secret ways of getting great deals at government auctions. You can find this information anywhere on the net. Only deal with websites that give you valuable information regarding where auctions take place in your area. These websites can save you a lot of time and give you immediate access to auction locations.

Article Source: http://www.article-outlet.com/

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