With so many advertisements claiming to offer the latest luxury cars for just a fraction of their price, people can get quite sceptical when they come across genuine opportunities like government car auctions. The truth is that there are some expensive luxury cars available for a fraction of their price, but one has to go through a lot of bucks to get to the luxury cars. One of the most cost effective ways of acquiring vehicles is through government car auctions, and government car auctions are held all over the US (the cars available are essentially repossessed, seized or surplus vehicles).
To better understand the legalities involved, it is important to understand the difference between repossessed and seized cars.
Repossessed Cars (repo cars)
Repo cars are cars that were offered as collateral against a defaulted loan, or have been repossessed by government organizations or banks due to non payment of instalments. Repo cars are more often than not well used, and should be treated as second hand cars. In fact, the reason why repossessed cars are so competitively priced at government car auctions is because they have been used by the owner (in some cases for a few years).
Whenever a person is imprisoned for a financial crime (like tax evasion or fraud), all his assets (like cars and properties) are seized. In addition, cars that are part of federal evidence or have been used in a crime are also seized and auctioned off at government car auctions. Seized cars should not be confused with repo cars as there is no defaulting of payments or collateral involved.
People looking for luxury vehicles will find seized cars at government car auctions the ideal choice, as luxury vehicles are often seized from wealthy people that were found guilty of financial crimes. In fact, it is not uncommon for people to come across brand new cars at government car auctions.
Things to remember while buying cars at government car auctions
Unless you are an expert yourself, it is important to consult a car expert to know exactly what condition a car is in. Although government car auctions are designed to be neutral and transparent, it is important to remember that no government car auction can guarantee the condition of the car being sold. You should always check the condition of the car before finalizing the deal and if you are not confident, do not go through with the deal.
If you are not familiar with the way a government car auction works, observe other bidders to get a better idea of bidding procedures and also how you can get a good deal on the car you are buying. It is important to remember that even online auctions are conducted by the government are hassle free and transparent. Make sure you specify the exact model of car you are looking for, and also keep in mind that you will be paying only for the vehicle and not for any additional process or paperwork.