If you have been thinking about purchasing a new car and have been shopping around, the sticker prices may have been quite a shock to you. But there are other options available to you. For example, have you ever considered government car auctions for your new car purchase?
You may have seen the ads proclaiming that you purchase practically new and repossessed autos for virtually pennies on the dollar. Typically, these auto auctions advertisements claim that you can purchase cars for up to 90% off, or that you can buy seized vehicles for $200 to $300.
You have probably dismissed these claims as too good to be true. However, you REALLY can purchase your vehicle at a fraction of the cost from local car auctions if you understand a little about these public car auctions.
Now, let’s take a moment to mull all of this over…
If you can purchase a virtually new car for mere pennies on the dollar, why would you pay thousands of dollars for a brand new car from a dealer? Why shoulder the depreciation on a brand new car when you can get one that is virtually new for thousands less? It just makes good financial sense.
Honestly, government auctions are one of the most under utilized resources available to car buyers. Many people mistakenly believe that these auctions are only open to dealers or those with special permits, but this is not correct. Most repo car auctions are open to those who are 18 years of age or over and possess a valid driver’s license.
So, next question – just where do the vehicles at the car auctions come from? Well, normally, government agencies auction off their surplus inventory on a regular basis. These agencies regularly buy new automobiles and equipment that are replaced every two to three years. They have to get rid of the vehicles that are no longer being used. In addition to the agency vehicles, they also auction off seized vehicles. So there is a great supply of late model cars to choose from.
Local car auctions also include repossessed vehicles from owners who could not, for whatever reason, meet their terms of their loans or leases. Since banks deal in cash, holding this property is not in their best interest. So the banks and lending institutions offer these vehicles at auto auctions to recoup their investment. You win by getting a nice automobile for much less than it is worth in many cases.
And if you’re thinking that your choice will be limited to only a few types of vehicles, nothing could be further from the truth. You will find late model SUVs, minivans, coupes, sedans, and even some sports cars.
Keep in mind that the government agencies and banks still want to get as much as possible for their property, but it is possible to get a great deal. That is why these auctions are so popular among those who know about them.
So for your next automobile shopping expedition, you just may want to consider checking out your local car auctions first.