Instead of going to a car dealership and buying vehicles the usual way, have you ever considered visiting a government or police auction? If you’re not aware, the police seize thousands of cars and other vehicles every month and often auction them off to the general public at extremely reduced prices.
Obviously, police auctions are a secret that car dealerships don’t want you to know about. This is because not only is there one less potential customer looking to purchase a vehicle but there is also another bidder competing against him for the cars that are being auctioned.
So why does 90% of the general public buy from car dealerships? Well that’s a good question and I think it comes down to education. People are simply not aware or these government and police vehicle auctions. The government would be ridiculed is they spent money on advertising. Here is a list of advantages and disadvantages in buying at these auctions:
Advantages:
- Business Methodology allows much lower prices.
- No matter where you live, there are typically many auctions held around your area
- Information regarding government and police auctions with vehicle listing detail is now available on the web
- There is usually a wide selection of vehicles that can be found at government auctions - sports cars, SUV’s, pick up trucks, motorcycles, jeeps, etc.
- No middleman for you to have to deal with or pay
- No commissioned salesperson to have to deal with
- Seller is motivated and doesn’t want to handle inventory, everything has to be sold!
- Better income tax advantages (run as a business)
- Car taxes are typically less
- Start your own business (i.e. Sell cars on the Internet)
Disadvantages:
- You’ll probably have to pay it all in cash (which for some is a blessing)
- No warranty (although used car dealerships warranties are for short time periods)
If it’s not a problem paying cash, or you can get credit elsewhere, then the advantages outweigh the disadvantages. Just remember to bring a mechanic or car expert who understands vehicles with you to the auction. They will inspect the vehicles that you’re interested in to make sure you get a great deal.
