Government Auction Buying Tips

Government auctions are usually advertised as being the best way to get a decent vehicle for a low price. Yes, it is true that police auctions and other government sponsored auctions sell vehicles, electronics, and even furniture for low prices not everything for sale is worth buying. When purchasing a vehicle through a government auction the buyer should always keep a few things in mind.

Inspect Before You Bid

The vehicles sold at government auctions have to be stored in a secure location prior to sale and pick up. While it is usually difficult to inspect vehicles seized by the police, vehicles seized by the FBI or previously owned by the police or federal government and auctioned online are usually stored at government lots. Buyers are allowed to inspect the vehicle in person prior to placing a bid online. This might not be possible if the vehicle you are buying is in another state, but if you have the option of seeing a vehicle before you buy it always make the effort to inspect the property.

Reserve Prices

Though most government auctions start at $100.00 or slightly lower, the government may not always sell the vehicle for such a low price. The government is allowed to sell and seized property for up to 95% of its actual value, and the government will usually try to get exactly that amount. A reserve price may be set which will allow the government to relist the vehicle if the bidding does not go as high as hoped.

Re listing Without a Reserve

Government auctions ran online are a bit different than auctions run on eBay or other auction sites. The government may choose to relist a vehicle even if the reserve price is met. This often happens when the sales price is lower than expected, or there were not that many bidders. Bidders do not find out whether or not a vehicle will be relisted until the end of the auction.

Purchasing a vehicle at government auction can be a little frustrating. No one likes spending time looking for a vehicle, and then being unable to meet a reserve price or beat other bidders. It is important to remember that the benefits usually out weight the inconveniences. Purchasing a vehicle at a government auction is a good way to get a nice vehicle for a fraction of its retail price.