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Why Are Luxury Cars Are So Cheap At Government Auctions

Anyone who is attended a government auction may have noticed that luxury cars are exceptionally inexpensive. While government auctions are known for providing excellent deals in general, over the past few years’ luxury cars in particular have become very cheap. There are several factors which, when combined, lead to luxury cars being sold for even less than normal.

A Majority of Bidders Are Focused on Commuter or Family Cars

At a standard GSA fleet vehicle auction the majority of the bidders are focused on commuter or family cars. This is because a majority of the listing is composed of cars the government bought because they offer excellent gas mileage and reliability. Plus, there are typically multiple makes and models in which multiple units are available. This allows bidders to focus on getting the best value for each purchase rather than targeting a specific car. As a result, savvy bidders are targeting popular commuter cars because they know they will have multiple opportunities to bid on similar units. As a result, they don’t focus on any particular vehicle but rather a type of vehicle.

Few Luxury Cars Are Listed at Government Fleet Auctions so Few Luxury Car Bidders Participate

Another reason luxury cars are so cheap at government auctions, especially fleet vehicle government auctions, is because very few luxury cars are listed. Since so few luxury cars are available at these types of auctions, a majority of bidders ignore them. They are more focused on the types of vehicles which dominate the listings because they know it will give them the best opportunity to land a great deal. This mindset has shifted so far in the direction of emphasizing commuter or family cars that luxury cars are now nearly ignored it some auctions. Even though the listing of luxury cars is minimal the number of potential bidders for these vehicles are in short supply as well. This results in a situation where there are very few people bidding against each other for luxury cars. As with all auctions, the fewer bidders competing against each other, the lower the end price is.

A Massive Amount of Luxury Vehicles are Listed at Federal Government Seized Vehicle Auctions

On the other end of the spectrum, there are a massive amount of luxury vehicles listed it federal government seized vehicle or seized property auctions. The United States Marshals Service is most well-known for this type of auction. At these auctions nearly every item is considered a luxury good including vehicles, jewelry, and a barrage of private property. All of this property was seized by the federal government. A similar situation arises as at fleet vehicle auctions. The only difference is that there are a significant number of luxury cars to bid on so potential buyers are comfortable waiting until they get the right vehicle at just the right price. This results in lower competition per unit, even though the competition for luxury cars in general is high.

There are a variety of different ways you can save money on a quality, reliable luxury car at government auctions. The key is choosing the type of auction you are most comfortable with. If you would prefer to focus on only a few luxury cars at a time, then her general fleet vehicle auction would be a better choice. On the other hand, if you a wide variety of luxury vehicles to choose from than a broader seized property or seized vehicle auction is the best choice.

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