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Why Government Car Auctions Are Not Good

Jan 16, 2008
Almost everyone wants to own a car, and yet only a few will be able to afford it. This is because they're very expensive. However, if you aren't really looking for something new, or if you like to settle for something that's really cheap, you can always go to auctions.

Government, for one, usually holds auctions for cars. These automobiles are either seized by police during special operations or previously owned by government agencies. They are also the ones that were obtained because of seizure laws. What makes these automobiles more interesting is the fact that besides being of great brands - such as BMW, Honda, Chrysler, and Lexus, to name a few - they're highly affordable. You can even start your price at a mere $200.

Unless the government will be able to find good use of these cars, they are often sold to the public. Otherwise, they're not only going to keep inventory but they have to spend for their maintenance. Though government car auctions may spell boon for people who have been dying to possess their very own luxury car, there are also disadvantages that you need to consider:

1. You're not used to the process. It may sound like an ordinary auction, but it's not. There are rules that need to be followed, plus the fact that you're practically dealing with the government. Your fear and awkwardness can definitely affect your bidding decision. To ensure that you will be able to bid properly, get yourself comfortable not only with the auction procedures but also with the people around you. They normally have practice auctions. It's ideal if you can attend at least one of them. You may also try to observe real government auctions and take note of how veterans bid for these cars.

2. There's no exchange or refund policy. In every good thing, there's always a catch. When it comes to used cars, you will be a little bit disappointed with its quality. To make things worse, you cannot actually return it right after you have purchased it. If you want to ensure that you will be able to truly maximize your money, double-check your desired car first. Have a mechanic or a car professional with you during inspection. His pieces of advice and comments will become invaluable.

3. There's intense pressure in government auctions. If you happen to see an auction either in television or in reality, you know that it's going to be truly fast pace. You have to think quick and efficiently. If you aren't ready with this type of environment, have someone who can do the bidding for you. Otherwise, you have to start looking for a used car dealer.

4. You can't own the car immediately. Unlike when you're shopping for cars from private dealers, with government auction, you still have to wait for at least two weeks before you can possess what you've bought. It may even take longer if there are some problems with your requirements. Hence, it's best if you can have a car professional with you, someone who can offer you advice on the probable requirements that you may have to present.
About the Author
Mark Robinson writes for Auto-Loans.GuideFin.com. Visit his website for information about bankruptcy car loans.
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