The US government has the ability to host car auctions for a few reasons. First of all, they may have a surplus of cars that were purchased cheaply, allowing them to sell the vehicles back to the public at a significantly discounted price. Every time government funding allows officials to buy new vehicles, the old ones are put up for auction. Sometimes a bank will have to intervene when a car owner fails to make monthly payments, seizing the car and putting it up for auction. Government auctions are also made possible from the efforts of law enforcement, that is impounded cars and those confiscated from law breakers. Auctions are held all over the United States regularly and there are also online auctions where you can find great deals on cars.
It is a fairly simple process to purchase surplus vehicles from online auctions. Those which are run by government or law enforcement agencies are your best bet. Scams do happen in online auto auctions, but going through a government-run site will eliminate those worries. When looking for the best sites, also seek ones with technical support options, an updated database of impounded cars and other vehicles for sale and quick service.
Whether you bid in online auctions or in person, there are three types of bidding that could be used. A traditional auction requires pre-registration and is carried out in the manner we all think of when we picture auctions. Item by item, vehicles are put up for bid. “Going once, going twice, sold to the lady in the front row for $2,600!” Spot bidding requires you to write your bid and the process thereafter is similar to traditional bidding. Sealed bidding is similar to a silent auction, in that you set the amount you are willing to pay without knowledge of what anyone else offers. Everything is done through the mail, so it takes a little more time. If your bid wins, you are sent a notification of when the amount is to be paid and when you can claim your car. However almost all Government auctions are held using the traditional process described above.
The bottom line of bidding on impounded cars is to not get caught up in the competitive nature of bidding. Beating the “other guy” will not be worth it if you end of paying more than you wanted to! Do not be afraid to step down from the “bidding platform” to wait for another good deal to come along – there will always be many more cars for sale. Everyone has the chance to make great deals, so keep a win-win attitude in mind as you bid on different surplus vehicles.