The Advantages and Disadvantages of Seized Car Auctions
Today, if someone drives a fancy car, it doesn’t necessarily mean the person is rich: the luxury vehicle could have been purchased at one of the many regularly held seized car auctions.
As the name suggests, seized car auctions offer vehicles that were seized by the government or police due to some illegal activity. In addition to criminals, the cars at repossessed car auctions come from people who didn’t pay their mortgage, didn’t pay taxes, etc. The government’s goal is not to profit from these vehicles, but to dispose 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 repossessed car auctions
1. Incredibly low starting offer. You can expect 80 and even 90% off, a great bargain when you compare it to the retail price.
2. Good condition. Most vehicles sold have been in use for no more than 5 years. Very often, there are cars in “near new” condition.
3. History reports available. Ideally, each of these auto auctions will provide free auto fax VIN reports. Also, you can use an Auto Check Vehicle History to make sure the car was not damaged in an accident.
4. Chance to find a rare model. If you’re looking for a particular model, especially a rare or imported one, chances are you’ll find it at such an auction. Also check out online seized car auctions – they have an impressive number of listings, so it really isn’t 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. So 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 car auction may seem like a difficult place. Needless to say, it’s hard to keep up with experienced car dealers. A friend who is not new to seized car auctions would be a great help. Or turn to online car auctions – they are easier to control the bidding process.
3. It is very time consuming. Searching for seized car auctions in your area, registering, preliminary checking, attending one (especially if it’s quite far 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 at seized car auctions, please read my blog.