I will define auction cars as cars that are bid on and purchased at an auction. There are many types of auctions such as police auctions, military surplus vehicle auctions, government auctions of seized cars etc. It is proven that a government auction is absolutely one of the best places to get a great bargain when it comes to high quality vehicles. These auctions normally consist of vehicles of high quality that have been seized by the federal government for example in a raid or have come into their possession for another reason.

Seized Vehicle Government Auctions

Bank auctions of repossessed cars and government car auctions are two different things. The vehicles that are auctioned by the government are seized and they want to get rid of them to free space in their parking facilities. Rather than operate as businesses and make huge profit, they can at least get a few dollars from them.

So pretty much, they will take any bid they can get. A bank however, is a business and will endeavor to do a bit more to get some money from their sales. For this reason the probability of making a better bargain at a government auction is higher than at a bank auction.

Online Car Auctions

Car auctions are held all over the country where people go and place their bids. However, not everyone lives nearby an auction site. Nevertheless, anyone who has a computer and an internet connection can still bid on a government auction. You even got the option of mailing your sealed bid for an auction car in to the auction.

Government Surplus Auctions

Another way to purchase cheap but quality auction cars would be at a government surplus auction. If you are looking for great car deals you can also participate in a government surplus auction, which is a little different from seized car auctions. The reason the government arranges these auctions is because of their need for renewal of their own vehicles. When the government’s vehicles become too old to function properly, they need to replace them while the old are sold at surplus auctions. At surplus car auctions you can also get used vehicles fairly cheap.

Military Vehicle Auctions

One variant of government surplus auctions are military vehicle auctions. We are not talking about combat vehicles like fully armed tanks, but many jeeps, trucks and other lower end vehicles are sold at military surplus auctions and you can get a decent vehicle very cheap.

Where the Great Bargains Are Made

The reason so many great bargains are made at government auctions is that the government has no intentions of acting like businesses and when the time comes to replace their vehicles as well as other properties, auctions are preferred rather than reselling them for maximum profit.

You can – and should – take advantage of this, find a government auto auction online or off line and get yourself high quality auction cars from the government at a price far below the vehicle’s actual listed value.

An Auction of repossessed cars is one of the best sources of getting quality used and new cars at low prices. In this article I will give you some tips if you’re interested in car auctions but not sure how they work.

So, what is a repossessed auction car, you might ask?

There are mainly two kinds of repossessed cars:

- cars repossessed by the government
- cars repossessed by banks and financial institutions

Government cars
- seized cars
- surplus cars
- unclaimed cars.

Government car auctions help when the government needs to free space and get rid of their repossessed vehicles and get some income to cover administrative costs. Vehicles repossessed by bank and financial institutions are vehicles used as collateral for loans and when the loan-takers don’t pay, they simply take the vehicles and put them up for Auction.

Which Automobiles Can You Expect to Find At such a public auto auction?

All kinds of automobiles of all price ranges trucks, pick-ups, fast sports cars, and luxury autos. The condition of these vehicles can differ a little but most of them are little used models and are functioning well. You can be lucky and find automobiles that are practically new and cost less than half of retail price.

How Are The Vehicles’ Prices Determined?

Car auctions starts at low prices and are then bid upwards by people who want to buy it. Some models are really hot and lots of bidders will fight to get it. In cases like this the price will skyrocket. On average the prices of auctioned vehicles are around 80 percent off the retail prices.

Rules of Auctions

There are rules and requirements regarding auctions of repossessed cars that the bidders have to adhere to;

- at most auctions you have to be 18 years or more to bid
- you must also have a driving license.
- to be able to bid some auctions will charge a fee

Take the Kelly Blue Book or another list of automobile values with you. It will be very easy for you to spot a good deal. Take a mechanic with you to inspect a vehicle you want to bid on upfront, if you don’t have sufficient knowledge yourself.

Where Do You Find these Auctions?

Car Auctions take place every day all over USA. Find auctions located near your home. Call banks, local government agencies or auction houses and get their auction schedules. Also check ads in your local newspaper.

The simplest way to find auto auctions is to go to the auction directories online. For a minor one-time fee you get unlimited access to their databases with updated information about auctions of repossessed cars. Be aware though, that there are some sites out there trying to cheat people. Steer away from them.

by Terry Carters