Police Vehicle Auctions - Pros & Cons vs Car Dealerships

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by Doug Smith

Are you aware that you will be allowed to attend many of the government and police auctions in your area? The police seize thousands of cars and other vehicles every month all across the country due to several different reasons. These vehicles are offered for much lower prices than you would generally pay by going through a car dealership.

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:

- They’re offered at much lower prices than anywhere else

- Auctions are frequently held in many locations throughout the US and Canada

- Detailed listings of vehicles at government and police auctions are now available on the Internet

- There is a large selection of vehicles that can be found at police auctions including: cars, jeeps, trucks, minivans, ATV’s and more!

- No middle tier channel (middleman) to go through or pay

- No pushy salesperson looking for a commission

- Seller is motivated and doesn’t want to handle inventory, everything has to be sold!

- Possible advantages to income taxes (establish a business name)

- 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 period beyond manufacturer warrenty, although most used dealerships only provide 30 days or so

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.

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August 5, 2008 by Doug Smith  
Filed under Sales

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