The Advantages And Disadvantages Of Seized Car Auctions
AutoToday, if someone drives a fancy car, it doesn’t necessarily mean that the person is wealthy – the luxury vehicle could have been purchased at one of the many seized auto auctions that take place regularly.
As the name suggests, seized car auctions offer vehicles that were seized by the government or the police due to some illegal activity. In addition to criminals, cars in repossessed vehicle auctions come from people who defaulted on their mortgage, defaulted on taxes, etc. The government’s goal is not to charge for these vehicles, but to get rid of them quickly and avoid storage and maintenance costs.
Seized car auctions, as well as other similar types of auctions, have their own advantages and disadvantages. Knowing them will help you decide if this is the way you want to buy your vehicle.
Advantages of seized car auctions
1. Incredibly low starting offer. You can expect an 80 and even 90% discount, a great bargain when you compare it to the retail price.
2. Good condition. Most of the vehicles sold have not been in use for more than 5 years. Very often, there are cars in a “near new” condition.
3. Historical reports available. Ideally, every car auction of this type will provide free car fax VIN reports. Additionally, you can use an automatic vehicle history check to make sure the car was not damaged in an accident.
4. Possibility of finding a rare model. If you are looking for a particular model, especially rare or imported, you are likely to find it at such an auction. Also check out seized car auctions online – they have an impressive number of listings so it’s really not that hard to find what you want.
Disadvantages of seized car auctions
1. Sold “as is”. After purchasing a vehicle, it is impossible to exchange or return it for a refund. Therefore, take the time to assess the condition of the vehicle and check its history.
2. Difficult for beginners. If this is your first time, a repossessed vehicle auction may seem like a difficult place. Needless to say, it’s hard to keep up with seasoned car dealers. A friend who is not new to seized car auctions would be a great help. Or, turn to online car auctions as they are easier to control the bidding process.
3. It is time consuming. Finding seized car auctions in your area, registering, preliminary checking, attending one (especially if it’s quite a ways from your location), and doing all the necessary paperwork later can take a few weeks. Again, participating in an online auction is easier, although it involves more risks and concerns.
With this knowledge in hand, you are in a better position to purchase a vehicle that is up for auction. For more details on where and how to pick up your dream car from seized car auctions, read my blog.