If you are searching for cheap cars, then you should start searching the locations where impounded car auctions are held. At these places, you will be able to get good cars at low prices. You may be seeking a car for your teenage kid, and you don’t want to spend a lot of money on that. Sometimes, you may wish to buy a second cheap car for your family. It is not that you always have to visit a car dealer to buy your car. The repo car auctions are the best places to find cheap cars. Many car resellers and dealers but cars from such auctions and sell them at higher prices later.
Government departments, financial institutions, and banks often hold vehicle auctions to free their space. These institutions seize the cars from those who fall behind their loan. When a person is not able to pay his debt, his car will be seized by the creditor. The cars of those who abandon the law and refuse to pay the penalty are seized by the police department everyday. These institutions have no time and money to take care of these cars. Rather than letting the cars rust in the shed, these major institutions auction the car to get rid of them. It is for this reason the starting bid price of government auctions is low.
The repo auctions are held as live auctions, and you have to appear in person to the auction place to take part in the auction. However, these auctions are not advertised much because the cars are not auctioned to make profits but to free the place. You can take advantage of this and buy cars at 10% of the retail price. Though advertisement is less for these auctions, you cannot expect the number of participants to be too low. Many dealers and resellers will be interested in buying these cars, as the cars will be in good condition if not new. Depending on the competition, the price of the car will increase eventhough the starting price will be low.
When you participate in local auctions, you should inspect the car before placing your bid. In impounded car auctions, you are allowed to inspect the car, and you will be provided with complete car history with VIN report. When you see big fishes participating in the auction, you can better stay silent because these people will be bidding high. Most of the times, you cannot buy a cheap car from your first live auction. However, if you watch out the auctions carefully, you can buy a descent car at low price.
As the cars can be bought at low price, many think the impounded car auctions are scams. This is just a myth, and you can hear these words from those who wish to reduce the competition in these auctions. The cars are sold by legitimate institutions and these banks are not interested in making profits. You will never be cheated when you buy cheap cars from repo auctions.