Repossessed Car Auctions sell to the highest bidder, and it can be a incredible way to get a used car for a quarter of the price. It is well known that second hand car dealerships purchase cheap used cars at government auctions and then sell them for enormous profits. That is why second hand car dealers can offer “finance to anyone”. Often they have so little tied up in the car, that they can afford to make the profit off of the value difference and the financing mark-up.

They don’t want the general public to know that they can purchase their vehicles this way. Often it is possible to find out the history of the car by the vehicle ID # and you can research it yourself by looking up the Kelly Blue Book value, or your bank can even look it up for you. The second hand car dealerships will be at the auction and will probably have a blue book with them, or they have already inspected the used cars they plan to bid on, and know how to get a great deal on them, at what price. The second hand dealers may outbid you if they know the wholesale value and condition of the vehicle and you don’t.

On Repossessed Car Auction vehicles, most times there is a loan that is small compared to the book value of the vehicle. It could have been repossessed due to default on a government secured loan, such as a Small Business Administration (SBA) that was personally guaranteed or Internal Revenue Service (IRS) debts on unpaid taxes that have gone to judgment and seizure through court, so they are selling assets to reimburse the government, they are therefore bound to sell to the highest bidder, whether a second hand car dealership or YOU!

The Government Car Auctions are held at various venues throughout the United States, and online. Some vehicles come from DEA, US Marshall and Coast Guard criminal or drug related seizures. Vehicles from government fleets that are a few years old, with service records, may also be put up for auction at the same time. Many times the government no longer want fleet vehicles more than three or four years old, since that is when most used cars need more frequent maintenance. The government will normally keep fleet vehicles maintained on a regular basis up to the point of auction.

Government Car Auctions and Repossessed Car Auctions hold inspection times prior to the auction. If possible, take someone with you that knows cars, it is often only for a one day period. Some vehicles may have known defects listed, but regardless, once you have won the bid on it, you need to remove it. You need to plan to pay cash, as they are not involved in waiting on financing to come through. We do, however, have options available to assist you with finding a loan for your car. Repossessed car auctions are still a excellent way to get a used car at a fraction of the cost you would pay at a second hand car dealership if you were in the market for a quality used car.

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Tags: auctions, Cheap Used Cars, government car auctions, government fleets, repossessed car auctions