Government Car Auctions: Tips for a Good Investment [article from Articleranks]

Government Car Auctions: Tips for a Good Investment

For first time car buyers, government car auctions may be a foreign idea. In most cases, people would rather view the latest car models in showrooms or go to second hand car dealers to buy used cars. Most people do not realize how much they miss by not going to an auction. Here are some facts that people should know about these auctions.

Not all people are aware of the thousands of vehicles that go to bank and government surplus inventory each year. The outpour of these seized or repossessed cars, trucks, and vans can be overwhelming in terms of expenses. Storage and maintenance costs are very high. As a form of counter measure, banks and some government agencies put them out for auction where they are sold for up to 90% less their original price.

Various government agencies are involved in these events. These agencies include the US Customs Services, Department of Treasury, US Marshal, Small Business Administrations, US Department of Defense, and Department of Energy to name a few.

The strict enforcement of the anti mob law in the United States today has produced more seized posh luxury cars than ever. The government is not after profit. They need to get rid of these cars as soon as possible. The cost of maintaining them is a liability to the government's treasure chest. As a result, government car auctions sell cars for ridiculously low prices.

Interested car buyers will find repossessed cars by the IRS. These cars were owned by people who failed to pay their bank installments on time. This is why near new cars with models like Toyota, Mitsubishi, Chrysler, Lexus, Nissan, Honda, Ford, and GM are found in these auctions.

Cars are even sold for as low as two hundred dollars. The fact that banks and the government are eager to sell these vehicles should be capitalized on by car buyers. Imagine purchasing high quality cars for a deep discount. That is worth all the efforts in bidding.

Aside from the advantages sited, these auctions are very accessible as well. There are local auctions announced twice or even thrice a year. People who want to try car auctions should look for announcements in their local newspapers. Once in an actual auction, a buyer must identify his or her budget. With the money prepared, a buyer can limit his or her options.

tags:government car auctions,government auctions,car auctions,seized cars