A federal auto auction is a great way to get a deal on a great car. Unfortunately, some people aren’t aware of them or how they work. Some tend to question whether or not these are real deals, or if there’s a catch.
The Basic Facts About Federal Auto Auctions
Basically, various federal agencies auction off overstock, unclaimed, and seized automobiles. These events are sometimes known as a “government surplus auction.” The federal agencies who hold these type of auctions are, The General Services Administration(GSA), FBI, IRS, DEA, U.S. Marshals, Department of the Treasury, Homeland Security, and Border Patrol to name a few. Your state, county, and local governments also have regular government auto auctions. These are held by the state police, DOT, city and county law enforcement, city and county administrative departments, and fire departments.
Your banks, credit unions, and other lending institutions regularly repossess automobiles from delinquent customers. They then sell them through a government auto auction. In most cases, a financial institution’s auction and a federal auto auction is handled by private companies under contract, these auctions are very professional. You can find a federal auto auction in various parts of the country. One or more is held almost every day of the week. Usually, the general public can attend and participate. Finding a good deal once there is very possible, though most people don’t even know they exist.
How A Federal Auto Auction Operates
A federal auto auction is held all over the country, the locations and times vary greatly. You may find that a government auto auction is held at a particular location on a regularly, this could be monthly, quarterly, or annually. Your local and/or national newspaper tend to have location and time details. A government surplus auction tend to have more than just cars up for auction. You can find all kinds of property, such as real estate.
A federal auto auction has all types of vehicles up for sale. These tend to include, SUVs, coupes, sedans, vans, minivans, and convertibles. The point of all this is so these government agencies and lending institutions can get rid of this surplus property while getting as much money as possible. This is to your advantage however, cause you can get some very good bargains on a nice car. You should know that this is the case, because no one would participate if they weren’t getting great deals.
To be a bidder/buyer at a federal auto auction, you must be at least 18 years old and have a drivers license that’s valid. There are some government auto auctions that are restricted to licensed automotive dealers, but you’ll find a large majority of them are not. For about two days before the actual federal auto auction, you have a preview period where you can inspect the various vehicles. The main disadvantage is that you will not be able to test drive the vehicles in most cases. However, you can start them up and check them over to your heart’s content.
Like with most auctions and used car sales, there are no warranties or guarantees. In most cases, there are no buyers fee or registration charges at a federal auto auction. You just pay the price of the vehicle, and you’re set to go. It take’s a little practice to become a good auction buyer, this federal auto auction finder will save you thousands of dollars.
Don’t Make These Mistakes at a Federal Auto Auction
There are always some risks when buying a vehicle at a federal auto auction. The key is to learn as much as you can so that you can significantly lower your risks. Doing some research and knowing about what kind of car or cars you want will put you ahead of the game. You should also do some research on pricing, and how the government auto auction process works. If you’ve never been to an auction before, then you should be aware that a federal auto auction typically moves very fast. It’s a good idea to attend a few just to observe, so that you can get an idea of the pace and bidding techniques.
The only “catch” that you’ll become quickly aware of at a government auto auction is that there’s competition in the bidding. If you’re interested in a car that’s popular and in great condition, you can expect other people and used-car dealers to be just as interested also. Don’t get caught up in the frenzy of heavy bidding which drives the price up and end up overpaying. You should set a limit on how much you’re willing to spend on each car you’re interested in. You’ll find the best deals are usually on the older less-than-perfect vehicles. Dealers go for the relatively late-model higher-priced vehicles.
Winning and Losing At A Federal Auto Auction
Be prepared to bid and lose in any kind of government surplus auction. On the same note, you also must be willing to bid and win. That means ready to pay cash or finance your vehicle within the time frame set by the private auction company. An option you should consider is applying for a pre-approved used-car loan at your bank or credit union. A federal auto auction doesn’t usually accept personal checks, but credit cards, money orders, certified checks, and traveler’s checks are accepted.
Where Can I Find A Government Auto Auction?
A federal auto auction of various sizes are held all over the country pretty much every day. There are basically two ways of finding a government auto auction in your general area. The first way is by doing it yourself, which involves contacting your local federal, state, county, and local government offices to determine if they have upcoming auctions. You have to ask them where they are and when. You also have to contact banks and financial institutions individually for their auctions, if they have them.
Remember to contact the private auction companies that handle auctions for banks and other big organizations. Most official federal auto auctions are announced in local and national newspapers as part of the legal requirements for holding the auction. These federal auto auction ads usually appear on a particular day of the week or month. For a local or county government auto auction, these notices and listings only appear in one local newspaper. You’ll have to find out which one for your particular area.
Federal Auto Auction Directory Services
The second way of locating a government auto auction is through an online federal auto auction directory service. These types of services do all the legwork for you, for a fee however. The cost of this service can average about $40, and is usually a one-time charge for unlimited online access to updated listings of federal auto auctions. This type of service provides complete directories of auctions all over the U.S., showing locations, descriptions of goods, schedules, and other details. Times and locations of auctions can change, so make sure you check before setting out to attend one.
Expectations At A Federal Auto Auction Directory
With an online federal auto auction directory service you shouldn’t expect a full list of specific vehicles, descriptions, and prices for each auction. This information changes on a daily basis, and is difficult to keep updated. You can obtain a catalog of vehicles for a particular auction the day of the auction, or sometimes a few days prior. This can be obtained from the federal auto auction administrator.
One Last Thing To Consider
It’s a good idea to take a mechanic with you to a federal auto auction. This is way you won’t end up paying for a vehicle that’s not fit to drive, or may break down a month down the road. You can get access to exclusive step-by-step tutorials that will make you a confident buyer at any federal auto auction.
