Ever wonder how dealerships get their cars so cheap before they brand them and sell them to you at a profit? Sometimes they do this by buying cars seized by the government and the bank at auctions. Auctions for cars seized by the government and banks are held throughout the United States. How much you end up saving depends, of course, on several factors. The most important factors are the type of vehicle (make and model) and how much competition exists for the vehicle you want. Often times, there is little competition at auctions. It is often possible to buy seized cars for up to 90% off the blue book value.
There are also almost daily online auctions where you can buy the exact car you are looking for. These auction sites will require a small fee for their services, but allow you to search by exact make and model. You may be able to purchase the exact vehicle you are looking for online, even though it is located across the country. Because you won’t be physically inspecting it, you may want to make sure you get a vehicle history report before purchasing it this way.
Typically, an auction center will provide a free 3-month limited warranty on any impounded car you purchase. An extended warranty may also be available for an additional cost. However, one thing to keep in mind is that some of the vehicles are newer and may still carry the rest of the manufacturer’s warranty. If you don’t verify the warranty information, you may end up buying a vehicle “as is.” If you do and bought a lemon, you can’t return it and you’re stuck with wasting your time and money.
If you want to start buying seized cars, trucks, and SUVs, the first step is to find a reputable auction site. They will give you all the information you need to buy impounded vehicles. They should also provide tutorials and guides to help you present yourself prepared. And preparation is the key. If you don’t prepare properly, you may find that you have successfully bid on a vehicle, but don’t have enough to pay for it or the correct payment method.
There is also much more information on how to buy cars seized by banks.