Before purchasing a new or used car, you may want to consider purchasing automobiles that are seized by the government or repossessed by banks. The government and banks use an auction process selling the car to the highest bidder.
Cars often auction off with starting price as low as $100 USD and it is not unusual where you can save up to 90% off the book value of the car. Winning the auction can save you thousands of dollars or can extend your purchasing power allowing you to buy into higher class of vehicles.
All makes and models from economy to luxury vehicles are auctioned with clean titles.
Each vehicle is assigned an auction number and a location of the auction. You should inspect the vehicle prior to placing the bid and have a good understanding of the retail Blue Book value of the car.
Edmunds.com is an excellent resource for researching prices and specifications for new and used cars. The website lists the current dealer retail prices for all makes and models. As a goal, you should limit your highest bid to about 50% of the dealer retail price.
The final bidding price of the auction is determined by competition with other bidders. Try not to get caught up in the excitement of the auction. You may even want to consider attending an auction or two prior to bidding on the car you want to get a feel for the process.
If you are the winning bidder, you will need to settle the payment with the transaction clerk. You can use cash, check or credit to settle the bid. Sometimes the auction company will offer financing. Terms and settlement conditions are listed in the bidding instructions. Read and fully understand the bidding conditions prior to making any bids.
After you complete your purchase, you will receive an invoice that will allow you to drive or ship your new car to your home. The auction company will guarantee clean title to your new car and will aid you in making shipping arrangements if you request.
Although the auction process is intimidating at first, it is well worth the trouble since you can save thousands purchasing repossessed autos though auctions.
Howard Young is a freelance writer and car buff. He enjoys driving his BMW 530i.