Seized Car Auctions are the Greatest Thing Since Skippy Peanut Butter.

The new thing in consumerism is auctions, and they’ve taken the commercial world by storm. Ebay, Yahoo, and Amazon are some of the big ones, but the auction bug has spread to other areas of the commercial arena, namely the real estate and automobile industries. With auctions, the idea is that we can get a better deal than if we had purchased our item (be it a house, car, or at-home-gym) from a traditional retailer. Since there are a thousand different programs available that will teach you how to buy houses at discount prices, I’m not going to broach that subject. What I want to talk about are seized car and government car auctions, as they represent the best way available to most people (those of us who don’t own a dealership) to purchase a car at a discount. Not only are they the best way, but they are an amazing way to do so.

Everyday in America cars are seized by banks and the government for many reasons, such as the owner filing bankruptcy or not making payments on the loan, or the car could have been caught up in an estate settlement or taken as police evidence. These cars are eventually sold at auctions throughout the US at steep, STEEP discounts. Some cars sell for as little as 95% of the value of the car. And better yet, they’re sold to the public. You don’t have to be a dealer or have any other special license to buy these cars, you just have to go to the auction and bid.

I’m sure most of us can’t pay cash for a $20,000 car, but what if you could get that car for $1,000? That’s a 95% discount, and that’s how much some of these cars are selling for. Please don’t misunderstand me, not every car at these auctions is 95% off and not every car is a gem. However, if you could save 50% or even 25% on the price of a car (a fairly reasonable amount to save at one of these auctions) wouldn’t that make looking into seized car auctions worthwhile?

Most people’s car purchasing decisions are guided but the dollar amount they can afford for a monthly payment. For example, if you can only afford to spend $150 a month, you can only afford a car that costs about $5,000. For that amount of money you can’t get always get a very good car. However, what if for $5,000 you could be driving a late model Volkswagen or Cadillac? That’s the kind of deal you can find at an auction. greatly diminish the amount you’d be losing due to depreciation and interest? I won’t go through the calculations again, but if you purchased the used car we talked about above for $8,800 instead of $12,800, after two years you would have $3,500 in equity, and you would have only lost $1,300 total ($1,000 to interest and $300 to depreciation). That’s a lot better than the $9,400 you’d lose to depreciation and interest if you bought the same car new.

Ok, so by now you’ve hopefully had enough convincing and you’re ready to check out these seized car sales, but you probably don’t know where to find them. I’ll admit, I can’t tell you either. At least, not unless you live in the same state as I do. However, there are two databases that I recommend you check out. The first one is www.govt-auctions.org and the second is www.auctionspass.com. Both of those sites have extensive listings on seized car auctions throughout the U.S. There are a few databases like these on the internet, but I like and because they deal with more than just cars. You’ll notice that they have listings for private property auctions as well. Looking for an HDTV or a new laptop? You’re in luck.

Now, don’t be alarmed, these databases are not free. Both websites charge a one-time fee of less than $40. If you ask me, that’s a pretty reasonable price when you consider how much you will save by buying just one car from an auction.

If you’ve never purchased something from an auction before there are a few things you should know. First, know what you’re looking for before you go to the auction. Know what it’s worth and how it’s been reviewed by other consumers. Second, have a firm dollar amount as your max price and stick to it. Stick to it! Until you get good at assessing another bidder and you can determine if an extra $50 is going to knock him/her out of the game, don’t bid $1 over your max price. Third (and probably the most important), know the rules about how and when you have to pay for your purchase. Some auctions will allow you to pay within a few days but most will want the money before you leave with the car. Make sure you have the arrangements made before you bid. I’ve found bankers to be very willing to make loans on cars at auctions, so don’t be afraid to ask.

The databases will not only let you do a search for auctions in your area, they’ll allow you to search for specific cars selling at those auctions. That’s pretty awesome. So check out one, or both, of the databases, go find yourself a great deal that will save you a ton of money, and report back here to tell me your story.