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Police Vehicle Auctions vs Car Dealerships – Which is Best?

7 August 2008 One Comment
by Doug Smith

Are you aware that you will be allowed to attend many of the government and police auctions in your area? The police seize thousands of cars and other vehicles every month all across the country due to several different reasons. These vehicles are offered for much lower prices than you would generally pay by going through a car dealership.

Obviously, police auctions are a secret that car dealerships don’t want you to know about. This is because not only is there one less potential customer looking to purchase a vehicle but there is also another bidder competing against him for the cars that are being auctioned.

Yet over 90% of the population still goes to car dealerships to purchase their vehicles. People are simply not aware of the great deals that police auctions have to offer. The government isn’t about to spend any budget publicizing the auctions either. Below is a list of pros of advantages versus disadvantages in buying vehicles at these auctions:

Advantages:

- Business Methodology allows much lower prices.

- Police auctions are held everywhere in US and Canada.

- Detailed previews on the Internet of the cars and vehicles that will be offered at upcoming auctions

- There is a large selection of vehicles that can be found at police auctions including: cars, jeeps, trucks, minivans, ATV’s and more!

- No middle tier channel (middleman) to go through or pay

- No annoying commissioned salesperson to deal with

- Motivated seller who doesn’t have the resources or time to deal with inventory, therefore offering vehicles based on no reserve bidding

- Better income tax advantages (run as a business)

- Usually pay less car taxes

- Once you understand process you can do as a side business (i.e sale cars in Autotrader.com or eBay)

Disadvantages:

- Most sales are made in cash so credit is typically not offered

- No warranty period beyond manufacturer warrenty, although most used dealerships only provide 30 days or so

If it’s not a problem paying cash, or you can get credit elsewhere, then the advantages outweigh the disadvantages. Just remember to bring a mechanic or car expert who understands vehicles with you to the auction. They will inspect the vehicles that you’re interested in to make sure you get a great deal.

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One Comment »

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