Government Auctions – Seized and Surplus Auto Auctions
Is it possible to get cheap cars at government car auctions?
Various U.S. government agencies, as well as state, county, and city government agencies, regularly conduct auctions of property and equipment, including vehicles of all types.
Some of the vehicles are “surplus”, meaning that they are no longer needed and have probably been replaced with newer vehicles. Although these cars, trucks, and other vehicles have been well maintained, they usually have high mileage, particularly in the case of police cars and SUVs.
Other types of vehicles that might be found at a government auction are “seized” or “impounded”, which means they have been confiscated by a law enforcement agency for various reasons. Some have been taken from criminals who have used the vehicles in the conduct of their crimes. Others have simply been impounded for violations of motor vehicle laws. Still others are “unclaimed” or “abandoned” by owners.
These cars and other vehicles will be auctioned to the public and other interested parties.
Government car auctions – in a nutshell
In short, various federal, state, and local government and law enforcement agencies regularly auction off surplus, unclaimed, and seized property, including automobiles, furniture, equipment, and even real estate. These are collectively known as “government auctions.”
Who holds government auctions? The General Services Administration (GSA) is one of the largest. Then there’s the FBI, IRS, DEA, U.S. Marshals, Department of the Treasury, Homeland Security, and Border Patrol, to name a few. State, county, and local governments also have regular auctions.
Included are state police, DOT, city and county law enforcement, city and county administrative departments, and fire departments. For more about police seized-property auctions see Police Impound Auctions.
Some government auctions are surplus property auctions that sell everything from computers, furniture, forklifts, to motor vehicles. Some specialize in selling cars, trucks, vans, and SUVs.
Banks and lending institutions also repossess property and automobiles from non-paying customers, and sell the goods through public auctions (see Repo Car Auctions).
In many cases, government auctions are handled by private auction companies under contract. Others are conducted directly by the government agency or its procurement department.
These auctions are real. They take place almost every day in various parts of the country. In most cases, anyone can attend and participate. And it is possible to find good deals. However, most people don’t know they exist.
Government car auctions – how they work
Government seized-property or surplus auctions are held all over the country at various locations and on various schedules. Typically an auction is held at a particular location on a regular basis — usually monthly or quarterly or annually. Local and national newspapers often have listings and details. Usually these are more than just car auctions. All kinds of property are included, including real estate.
All vehicle types, makes, and models are sold at such auctions – SUVs, coupes, sedans, vans, minivans, even convertibles. Obviously, these government agencies institutions are hoping to get as much money as possible for their goods. But good bargains and cheap cars can be had. Otherwise, the auctions wouldn’t be as popular as they are and no one would participate.
To buy at auction, you must be at least 18 years old and have a valid drivers license. Some government auto auctions are restricted to licensed car dealers, but most are not.
Many auctions have a preview period of about two days preceding the auction in which you can look over and inspect the vehicles. However, in most cases, you will not be able to drive the vehicles although you can start them and check them over as much as you like. And there are no warranties or guarantees, which is no different than most other used-car sales.
For most government-run auctions there are no buyers fees or registration charges. The price of the vehicle is all you pay. There may be fees for auctions run by professional auction companies.
To become a good auction buyer, a little practice and self-training can help tremendously.
What’s the catch?
As we’ve already mentioned, there are always some risks in buying at government or repo car auctions. However, you can significantly lower your risks by knowing what you’re doing, knowing about the car(s) you want, researching your pricing, and understanding how the auction process works. Auctions typically move very fast, so you should attend a few just to learn the pace and bidding techniques.
If there’s a “catch” to government car auctions, it’s that there’s competition in the bidding. If the car you want is popular and in great condition, you can expect other people, including used-car dealers, to be just as interested in it as you are. Competition and heavy bidding will drive auction prices up — sometimes beyond the real value of the vehicle. Don’t get caught up in the frenzy and overpay. Set a spending limit on each car you’re interested in.
The best bargains are usually on the older less-than-perfect vehicles that dealers don’t want to spend time and money on. Dealers go for the relatively late-model higher-priced vehicles. Since dealers want to make a profit by buying low and selling high, you might be able to pick up a good car by bidding slightly higher than a dealer is willing to pay. Or bid on older vehicles that dealers don’t want.
Winning and losing
You must be willing to bid and lose in any kind of auction. You must also be willing to bid and win, and be prepared to pay cash or finance within the required time set by the auction company. You can apply for a pre-approved used-car loan at your bank or credit union, or at an online auto loan company such as Auto Credit Express, and be prepared in case you win a bid. Personal checks are not usually accepted, although credit cards, money orders, certified checks, and traveler’s checks are accepted.
How to find government car auctions?
Government car and property auctions of all types and sizes are held all over the country virtually every day. You have essentially two ways for locating these auctions in or near your area.
The first way to find these auctions is to do the legwork yourself. Contact your local federal, state, county, and local government agencies to determine if they have auctions, where they are, and on what schedule. Contact banks and financial institutions for their auctions, if they have them. Contact national and local auction companies who handle auctions for government agencies.
Most official government auctions are regularly announced in national newspapers (such as USA Today) or local newspapers as part of the legal requirements for conducting the auction. These ads usually appear on a particular day of the week or month.
For local or county auctions, notices and listings will appear in only one local newspaper. Find out which one. Many government auctions and sales, both federal and state, are listed on the FirstGov.gov web site, run by the U.S. government. A catalog of vehicles for a particular auction will be available on the day of the auction, or a few days prior, from the auction administrator.
Auction directory services
The second way of finding government car auctions is through an online auction directory service that does the legwork for you — for a fee. Fees vary but average about $40, usually a one-time charge for unlimited online access to listings of auctions. The fee is certainly reasonable if it’s going to help you save hundreds or thousands of dollars on your car purchase.
Gov-Auctions.org is one of the companies providing an auction directory service. The site contains instructions and information on how to participate in the auctions, in addition to their comprehensive directory service.
These services provide directories of auctions all over the U.S., showing locations, descriptions of goods to be sold, schedules, and other details. Times and locations of auctions can change, so make sure you check before setting out to attend one.
What to expect from online auction directory services
When using an online auction directory service, don’t expect a full list of specific vehicles, descriptions, and prices for each auction because this information changes daily— although some services provide more detail than others. Some directory services have outdated information so be sure to ask for your money back if you don’t like the service or its product.
