In the United States of America (US), it is very simple to get a pre-owned vehicle. People know that the finest place to buy or sell their cars is not through dealers or showrooms, but the General Services Administration (GSA). GSA is a federal agency that offers vehicles in auction. Individuals can also sell their own vehicle through auction. Government agencies such as IRS, DEA, FBI and the police departments acquire 1000s of cars each month through seized and foreclosure laws that are auctioned off to the general public. These cars are listed and sold at up to 95% off of their original values and sometimes, these auctions may start from $100 only. These cars are sold very quickly as their storage costs are very high.
A large number of fresh or approximately new cars get forfeited or seized by the financial institutions everyday as thousands of people fail to pay their car mortgage or lease costs. These cars are also auctioned off in a hurry, because the rate of accumulating the cars compensates the banks' ability to get the lost money back (similar to the police auctions, etc.). As a result, for some fortunate people who have the access to straight sources, find themselves weighed down by very cheap car offers that look unbelievable to the average car buyer. This is real and is advantageous to many car dealers.
In addition, US government also sells its own vehicles after a certain period of time due to either change in policies or due to financial concerns. At these times, the vehicles are written off the books by selling out to the general public. Government Vehicles may come from several different sources. Generally, a vehicle can only be sold at a government auction if it is purchased under a federal or state government contract. To appreciate the numbers of vehicles up for the suction in this way, one needs to think of the long list of the different departments and levels of government in the US. Some of the sources of these used vehicles include the Federal Government, State Government, Local Councils organizations, Police Services / departments (incl. Sheriffs/Marshalls Dept.), Fire & Emergency Services, Religious Groups & other Non-profit Organizations, Universities & other Education Organizations, as well as Hospitals & Ambulance Services. Thousands of repossessed and seized vehicles are also auctioned off at these auctions.
By carrying out a simple hunt on your Internet, one can benefit from these great cars available in all kinds and price range. Car-Auction has a database full of thousands of different cars waiting for the bid. One can convert their dream car to reality by purchasing it from government & surplus auctions! Buying a car can be a difficult and stressful process but GAS makes it enjoyable and fun experience.
However not everyone can buy cars in this manner as this source of revenue is protected for the majority of car dealerships and not journalized. The general masses might have to go through the dealer or a classified ads routine. However, several organizations have gathered enough information and access rights to be able to let their members enjoy a multitude of the direct sources, whereby one can find their next vehicle with up to 90% savings off the book value price.
Government Used Car Auctions
Government, for one, usually holds auctions for cars. These automobiles are either seized by police during special operations or previously owned by government agencies. They are also the ones that were obtained because of seizure laws. What makes these automobiles more interesting is the fact that besides being of great brands - such as BMW, Honda, Chrysler, and Lexus, to name a few - they're highly affordable. You can even start your price at a mere $200.
Unless the government will be able to find good use of these cars, they are often sold to the public. Otherwise, they're not only going to keep inventory but they have to spend for their maintenance. Though government car auctions may spell boon for people who have been dying to possess their very own luxury car, there are also disadvantages that you need to consider:
1. You're not used to the process. It may sound like an ordinary auction, but it's not. There are rules that need to be followed, plus the fact that you're practically dealing with the government. Your fear and awkwardness can definitely affect your bidding decision. To ensure that you will be able to bid properly, get yourself comfortable not only with the auction procedures but also with the people around you. They normally have practice auctions. It's ideal if you can attend at least one of them. You may also try to observe real government auctions and take note of how veterans bid for these cars.
2. There's no exchange or refund policy. In every good thing, there's always a catch. When it comes to used cars, you will be a little bit disappointed with its quality. To make things worse, you cannot actually return it right after you have purchased it. If you want to ensure that you will be able to truly maximize your money, double-check your desired car first. Have a mechanic or a car professional with you during inspection. His pieces of advice and comments will become invaluable.
3. There's intense pressure in government auctions. If you happen to see an auction either in television or in reality, you know that it's going to be truly fast pace. You have to think quick and efficiently. If you aren't ready with this type of environment, have someone who can do the bidding for you. Otherwise, you have to start looking for a used car dealer.
4. You can't own the car immediately. Unlike when you're shopping for cars from private dealers, with government auction, you still have to wait for at least two weeks before you can possess what you've bought. It may even take longer if there are some problems with your requirements. Hence, it's best if you can have a car professional with you, someone who can offer you advice on the probable requirements that you may have to present.
Both Thomas Paul Rodrigues & Mark Robinson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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