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

2 Comments »

1. 

   Nice post. Yes it’s true, the best place to pick up bargain repossessed cars is at a car auction.

   Comment by Repossessed Cars — October 4, 2009 @ 12:53 pm

2. 

   Nice article. Picks out all of the important points of how to source a repossessed car online or at public auto auctions. Thanks!

   Comment by public auto auctions — February 24, 2010 @ 7:23 am

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