Auctions are now an incredibly cheap way to get good quality cars at a fraction of the price you would pay from your local car with typical savings up to 40%. Buyers will find cars in many states from almost new to well I will say that is clear. In addition sellers also vary from banks and lending companies selling repossessed and seized cars to deceased real estate private sellers and unfortunately individuals who want to sell problem cars because they would not be selling those cars in the classification as always warning buyers beware.
Where are the seized cars from?
Seized cars come mainly from two sources. Government and from lenders including banks and loan companies. Government seized cars come from a variety of sources and include seizures due to lack of payment of taxes from court orders for goods in this case cars obtained by criminal means and from incorrectly imported cars where the import documentation specifications result in the confiscation of the vehicle.
Banks and lending companies return cars where the debtor failed to keep payments on the vehicle which can of course be due to changes in personal circumstances ill health unemployment or in some cases economic ovestretch.
What types of cars are available?
The seized cars are usually of high quality and include Mercedes BMW Jaguar and Saab to name a few brands and the reason is: When a company breaks down there are creditors and creditors often include banks and IRS that have to be paid. If there is no cash to pay the debts the assets belonging to the company that cover the debts were sold.
If a company has been run as a company it is likely that the managers owners would have written off their vehicle expenses against the companys income statement to reduce their tax rate and what you may not know is that in some cases states like the age of the car can be no more than 5 years to claim these expenses. It has also been estimated that the average age of the companys seized cars is 3 years old.
So how do I get the best deal?
There are three main ways to make sure your wallet is fatter and you go away with a smile on your face:
Do some homework
Select a brand that you would really like to check out the ads. See the offer of prices from the cheapest terms service history etc for that price and formulate an opinion on the cars value. At least knowing the cheapest price will give you the worst scenario if you had to sell a car purchased at auction. See also the blue book for prices to get a good range of prices.
See the car at the auction before you bid.
Never never buy pure speculation. Its always a good idea to see a car. Check if it has a rough life ie scuffed wheels scruffy interior no service history at the sales office.
More important is to check the engine oil and coolant looking for evidence of water in the oil and the oil in the coolant. Bring someone if there is something wrong with the engine walk away it is not worth it.
Finally check the car from a cold start the engine rages? When it stands at the exhaust gas it has too much blue smoke real problems. If it has passed all these tests then.
Enter your maximum bid price.
Do not get involved in a bid contest. If you do you can stop paying more than if you bought the car at your local car park. When bidding it is usually advisable to wait until the amount of bids decreases from say the 100s to the 50s.
If you stick to these tips you should get a good purchase from the sealed cars at the auction house.
Did you know that you can save up to 90% by buying your car at Auction?