Government Auto Auctions Guide

Government auto auctions present a great advantage for people who want to save big on buying a new pre owned car. The whole idea and the biggest advantage is that you can save as much as 95% off the market value in many cases.

Some auctions start as low as $100 and although the bidding can get out of hand quickly for popular models, there are literally thousands of vehicles that must be auctioned off and can not remain in storage because this costs somebody money, so don't be discouraged or disappointed if you lose your first bidding war!

Another advantage of participating in Government auto auctions is the fact there is really no negotiating. This process is not at all like buying a car from a pre owned car dealer where typically the vehicles are marked way higher than Kelly Blue Book estimated value.

Dealerships get their inventory from the same source in many cases and although there have always been auction houses that allow everyone to attend, it has not always been obvious to most everyone that they can have access to a huge collection of Nationwide Government Auto Auctions through paid services.

These services collect auction listings from around the country into one single database that allows for quick searches by state and zip code, making it very convenient to find local auctions quickly.

When you're ready to attend an auction in your local area, it's wise to do a little extra work. Government auto auctions typically have large volumes of vehicles in all makes and models, and if you aren't familiar with the type of vehicle in terms of mechanics, it would behoove you to hire someone to inspect the vehicle for you.

A thorough vehicle inspection is absolutely necessary, it will be worth it in the end, as you eliminate the chances of bidding and getting stuck with a vehicle that may cost you more to repair than it's worth the savings.

Most Government auto auctions will allow bidders to inspect the vehicles prior to the actual auction day. Typically a couple of days before.

Here's a short list of things you need to pay attention to:

1. Get a full vehicle history report - This should include information on the title of the vehicle, you need to make certain that there are no issues with ownership and the title is free for transfer. The history report will also reveal accidents, and damage reports, the mileage on the vehicle's history report should closely reflect what's on the dashboard as well.

2. Check all tires and disk brakes - You should not see bold or unevenly worn tires. Usually if these conditions are obvious you can assume that the vehicle has not had the proper maintenance. Disk brakes may be harder to inspect but very important. You need to be able to detect rust as this may indicate that the vehicle has been sitting neglected for long periods or that it's been flooded before, also try to spot excessive wear on the break drums and pads.

3. Check engine oil and radiator coolant - Don't be afraid to get under the hood. When you check the engine's oil, make sure it is not a dark black color and make sure that there is enough of it. The radiator coolant fluid should be a bright green color, if it looks darker or dirty the fluid may be very old or the radiator may be rusting inside.

4. Check for obvious signs of body work - If the car was ever in a wreck but not totaled, it should have been professionally fixed by a body shop, not "Cousin Earl's Garage". Look at the inside of the fenders from the engine side and from under the front tires and look for signs of hasty repairs. Also obvious bumps, dimps, nicks and scratches should encourage you to inspect even closer.

5. Check all windows and windshields - Around the front and rear windshields make sure that there isn't any evidence of a sealant or caulking to hide leaks or bad repairs. Test all windows and sun roofs, roll them down and up several times and make sure that the rubber seals around the windows are not damaged.

6. Check the A/C and Heater - Make sure the air conditioning system does not take too long to start delivering cool air, you should test it a several temperatures, same goes for the heater. Inspect all vents and make sure that you can get air out of all of them. If the controls are digital test every button and dial.

7. Get a feel for the interior of the car - You need to simply use your instinct. When you get in the car, you should immediately sense the overall cleanliness of the vehicle's interior. Does it smell like mold? Does the carpet look newer than the rest of the interior? This could mean the vehicle has been flooded. Are the seats clean enough? If leather, is it torn in certain places and does it look discolored? The more you scrutinize the better off you're going to be and the better you'll feel about bidding on your chosen car.

1. Where do these cars come from? - Every month, people default on loans, fail to pay taxes or make the mistake of doing something illegal and buy cars and other properties with illegal funds. Government Agencies and other Law Enforcement Agencies seize and impound vehicles and other properties in order to satisfy debts or stop illegal assets. Because these vehicles must be stored and maintained, it can cost a lot so they are auctioned off quickly.

Also, Government agencies including local and state Governments own fleet vehicles that are typically only kept in service for a period of 3 to 4 years. Government vehicles are usually better maintained and have accurate records as proof.

2. What can I expect when I attend my first Government auto auction? - Remember that you do not want to jump in head first. After following the recommendations above for inspecting the car(s) you're interested in a couple of days prior, you want to attend your first auction and simply observe and get a fell for how things work. The rules can vary a lot and are set by the auction house, so get familiar with them before you start bidding. When the bidding starts, it can get go very quickly, simply observe and learn.

3. What if I bid and lose every time - It's important to remain conservative in your bidding. Yes this can disappoint you if you really wanted that red hot Ford Mustang, but this should not bother you, especially if you did your research and priced this type of vehicle correctly according to the Kelly Blue Book, NADA guide or Edmund's Book.

The bidding can get out of hand depending on the type of car being auctioned, so keep your goal in mind, which is to save as much as possible! Other vehicles will come along and it would be a good idea to have several choices lined up, don't fall in love with one car until you've actually won it.

4. Why don't more people know or use these Government auto auctions to buy a car? - Those who are aware that these auctions are available simply do not know how to approach them or feel the process is complicated. Most people however do not know these auctions are available to them, perhaps being under the wrong impression that a dealer license is required to attend. Yes pre owned car dealers use the same sources to get their inventory.

If the process is still unclear to you, one recommendation I can make is that you sign up for this free 5 day Government Auto Auction Guide, this will clear up many of your doubts and most likely encourage you to get started.

5. What about warranties on these vehicles - Most Government fleet and service vehicles come off service after 3 years and typically have factory warranty left that can be transferred. In the case that you find a vehicle that does not have any warranty left, you can easily add the warranty at the auction house, you will be given this option or you'll find third party companies that can help get your new vehicle covered.

6. Will I be able to find a Government Auto Auction in my area? - There are literally thousands of these auctions going on all over the country. Most like you will find these auctions in the larger metropolitan areas, but if you live in a very rural or remote location, you may just have to drive a little ways to get there. But any large city close to you should have auctions listed.

7. What about other types of vehicles and properties - Many different types of properties and assets can be seized by Government and other authorities and these can also be easily found. For example, when you get the Sunday paper, look at the classifieds and you'll easily spot Government auctions, which include not only vehicles but homes as well. Police auctions, Insurance auctions, Estate auctions, off lease vehicle auctions, normally hosted by Lenders and Banks etc.