Every year, more than hundreds of vehicle auctions take place where Government and other organizations sell cars that have come to them for various reasons. These vehicle auctions however are restricted to the general public and other licensed car dealers. This way, the percentage of people who are serious about selling their car or making a purchase is limited and there are no frauds that take place. Another advantage of these auctions is that the price quoted for the vehicles is relatively lower than what one would get at a dealer. This works out to the advantage of the buyer whereas for people who are selling, they might have to make do with a lower price. But, they are assured that their car goes to a person who is genuinely interested in the car.
The various categories of cars that come up to the vehicle auctions are,-
1.Seized vehicles –
These days, most people buy household goods and other high end products like cars on a hire purchase mode. This way, they need to make small payments on a regular basis till they are done paying the entire cost along with interest. If a person is unable to meet the payment dates, even after being given grace time, the company will repossess the vehicle. This could then be handed over to the Government or police authorities. Since the number of cars in their compound increases multi fold every day, they use these auctions to sell the seized vehicles. Most of these seized cars are of good value and high end, like the Mercedes Benz, BMW, Audi, or Porsche and when a person can buy them for nearly 1/100th of their price, these auctions are their only option.
2.Fleet cars –
Cars, and trucks that were owned by government officials and policemen will come for the vehicle auctions if the person who owned them wishes to give them away. They might be interested in buying a newer model or better car, and so this will be sold at auctions. They will be bought by someone who needs a car, and doesn’t car who owned it earlier, as long as it is in running condition, that is good enough.
When during the government and police auctions, we find surplus vehicles up for grabs, these are specialized vehicles that were used by people in the force and today are no longer needed. Either they would have become obsolete or done their service and time for them to retire. Typically, people who have retired from the force will be ones who buy these or people who are into collecting vintage cars might want one of these in their garage.
4.Lease ended vehicles-
People often take vehicles on lease for a fixed duration, and when this ends, they will return the vehicles to the financial institutions. If the number of such vehicles has crossed a limit, the bank or institution will hold a private vehicle auctions to dispose them off.