Government auctions are auctions sponsored or organized by federal and state agencies, as well as their affiliated organizations or institutions such as schools and health care facilities.
They also have assets such as cars that they need to unload in order to save money, raise funds, or get rid of surplus that may be draining their budget.
Auctions are a good way of selling multiple vehicles in a short span of time because they always attract crowds. These events may be live, which means you have to be really there, or online, which allows you to bid for vehicles at the comfort of your own home.
Joining an online car auction is very easy and quick:
- Look for online government auctions. Websites like Gov-auctions org. have a comprehensive list of both live and online auctions.
- Create your online account. You need an online account so you can bid and keep track of the bidding. You will also be notified usually through a phone call and an e-mail if you’ve won the bid.
- Check out the list of cars that are up for bidding. One of the biggest drawbacks of joining an online auction is you won’t be able to inspect the vehicles yourself. That’s very challenging since these cars are sold as is. That’s why you have to do your utmost due diligence:
- Read the descriptions very carefully.
- Compare the VIN (vehicle identification number) using the databases of National Motor Vehicle Title Information System or Carfax to make sure that the vehicle hasn’t been tampered, has not been reported stolen or lost, or if there’s no other issues that may come along with the purchase.
- Study each of the photos.
When in doubt, ask for more information from the auctioneer.
- Bid! There’s a minimum bidding price for every vehicle, and it can be as low as a hundred dollars. As more bids come in, you may have to increase that in the hopes you win.
- Get the vehicle. If you win, then you can now get the vehicle from a determined location. The auctioneer’s representative will be there to help you process the paperwork and pay for the vehicle.
- Learn as much as you can about the cars. Read the reviews and determine the features or warning signals to look for.
- Be sure of your bid. Usually, once you’ve made a bid, you can no longer cancel it. Avoid making the mistake of spending more than you can afford for a vehicle.
- Remember, you don’t have to give your credit card information upon signing. You give cash or check only when you have won the bid and have personally met the auctioneer and processed your paperwork.
- Have yourself pre-qualified or pre-approved for a loan. This ensures that you can always have some money to rely on once you’re ready to make a bid.
- Keep track of bidding. See to it you have access to a reliable Internet connection. Besides, bidding usually lasts for only a few hours or days so it’s not much of a hassle.