Auto Car Auction
Considering our way of life, which states that nothing comes for free, sometimes we can get quite skeptical when we find ourselves face to face with a luxury car that can actually be ours for a fraction of the price, we tend to think that it actually is a scam, and in doing so, passing up a great deal that is also legal and genuine. One of these opportunities is the government car auction. These auctions organized because of the huge number of cars that had to be repossessed, or seized, or simply were in surplus.
To better understand how the process works, one must realize the difference between seized cars and repossessed ones.
Repossessed cars, also known as repo cars, are usually offered as collateral against a specific loan, or have been repossessed by the government, banks or other financing companies because of the missed payments that were previously agreed upon. Repo cars are usually pretty used, so they should be classified as used cars (or second hand cars). This is one of the main reasons why repo cars are so cheap to acquire. They start the bidding very low since owners have been using them for up to a few years.
On the other hand seized cars fall into the possession of the government, when a person has been imprisoned for a financial crime such as tax fiddling or fraud of all types. In these cases, all their assets like cars and other properties are seized. Even more, cars that have been used as evidence in a federal case or have been used in a crime of some sort, are seized by government organizations and auctioned off at typical government car auctions. Seized cars are different from repo ones since there is no payment default or other collateral involved.
People that are looking for luxury cars will feel right at home at government car auctions, since all these cars usually come from wealthy individuals that have been found as guilty for financial crimes. As a matter of fact, you can very well find a brand new car at a car auction for this exact reason.
All might seem pink and fluffy, but the truth is that you need to be careful what car you get from a car auction. It is highly recommended to have a mechanic with you when you bid for a car. Government car auctions are meant to help themselves and the people as well, while keeping neutral and transparent, but they cannot offer any type of insurance or they cannot guarantee functionality status for the car that is being bid on. If you have a trusted mechanic, ask him to check the car thoroughly, and if you don’t feel good about the deal don’t go through with it. Remember, there are literally thousands of cars auctioned daily so there’s no rush.
If you’re not familiarized with the bidding system, you should attend some auctions just to observe how everything goes, so you can get a good deal. Keep in mind that all types of auctions, including online ones are transparent and without hassle. Also you need to keep min mind that the price set is for the deal ALONE. That price does not cover any type of paperwork.
Car auctions are getting bigger and bigger since there seems to be a limitless number of people that enter in leasing contracts that cannot be paid and end up with their cars lost. Since the company is only interested to get a certain sum for the car, they auction them off.
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