Pros and Cons of Buying a Car at a Government Auction
People say that for every good point, there is a negative. Of course, this also applies to the purchase of vehicles at a car auction. Let’s take a look at what they are:
Pro #1: Great savings
It is widely known that the prices of some cars at a government auction start at $100. Imagine if no one else wanted that car, it would be yours for just $100! But even if you have to bid on it with the other bidders, you’d still save up to 95% of the original value. Surely it’s a big savings for you that you couldn’t find that price anywhere else, definitely not as a used car dealer. These vehicles can be offered at such attractive prices because most of the time, the auctioneer’s concern is not to make a profit or make a big income, but simply to get rid of the vehicles that have been seized, etc. As long as they get something to cover the cost of recovery, they are happy enough.
Pros #2: Great variety
It’s not just sedans that are up for auction. There are also trucks, vans, SUVs, and even luxury vehicles. It will definitely be a steal to be able to get a luxury vehicle from these auctions as they will be selling for such a small fraction of their value. Not only will you be spoiled for choice on the type of vehicles, but there will also be a wide variety of models, makes, builds, transmissions, and colors to choose from. If you’re looking for a forklift or tractor, check out the list of items up for auction; you’d never know when you might find one of these in there too.
Cons #1: Competition equals a potentially expensive car
I wouldn’t complain about the competition because that’s just a small price to pay for such big savings. But what if you are not very aware of the value of the vehicle and bid and bid with the rest? The price could even reach more than the car is worth! It’s nice if you didn’t win that offer, but if you did, then it would be a much smarter option to get that car from a car dealer.
Cons #2: No guarantee, no guarantee
Unlike buying from used car dealers who usually give you at least a month of warranty, these vehicles purchased at a car auction don’t come with any. You don’t know where the car came from, how long it’s been sitting idle and how many owners it’s had. You could even run into problems with the property if it is one that has been stolen or smuggled into the country.
It’s wise to know more about what you’re bidding on and bring in a mechanic to do basic appraisals of the car at auction. So, enjoy your new cheap ride!