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Every month thousands of used cars sometimes almost new cars and trucks are seized by different Government agencies and Police departments. Some are reposed by Banks and then auctioned off to the public. Due to certain laws these vehicles are listed and sold for a discount, up to 30% to 60% off their original value (some claim 90% to 95% but 60% is more realistic) and these auto auctions many times start their bidding at $100 - $500.
With today's economic trouble many automobiles are being reposed sending the rate of reposed cars to record highs. These used cars, trucks and other items are now flooding the public auto auctions few people know about.
Auto auctions are a great resource to purchase a more economical used car to save on gas, buy a dream car for less, or buy and resell to pass the savings on to consumers for a profit. Though there are some details to watch out for when buying a used car the benefits seem worth the time and energy to find out where these auctions are.
It would be worth taking a day or two, check out a couple of these auto auctions before you purchase, see what they are like and then if it is good for you, find another one and then take your time and buy your next car at discount not seen at the dealers.
Some tips for buying used cars and what to do at auto auctions:
o To find the local auctions in your area you can search the newspaper for auto auctions or join an auction site with a data base of all the auctions in your area. View our site for one of the best auto auction sites with continual updated content and good customer service recommended by seized car buyers that buy these used cars for a living.
o You will want to give yourself time to look over the cars for sale and do any inspections of the cars your interested in prior to the auction. Some auto auctions will give you a couple of days to inspect their used cars but some do not. It would be best to arrive two hours early before the auction starts to look at the cars and get registered for the auction.
o The auctioneer speaks very fast but you will get use to it after a few minutes. That's why it would be best to take some time and just go as an observer before you actually go to buy if you can. Otherwise no problem, just give it a few minutes of listening before you start to bid to make sure you know what is being said.
o Many auctions may require a bank draft. Make sure you have enough money in your bank to cover your check. Be prepared ahead of time. Usually you can make a $500 deposit on your purchase and pay the rest in a couple of days. But always check the auto auctions terms first.
o Bring a blue book or Edmunds book with you to check the value of the used cars you want to bid on. When bidding don't get caught up in a bidding war try to stay 30% below blue book because there is also an auction premium when you buy a car of about 10% on top of the price you win the bid at.
Things to look at when buying a used car;
o Open all the doors, truck and hood check the vin# on the dash and any found on the doors, hood or truck stickers to make sure they all match if they don't it could be a possible stolen car.
o Do a history and title check on the vin # a site called CheckAuto is a good source for this type of service it dose a very thorough search on the car and will give you it's entire history.
o Check the oil dipstick for dirt or sludge, if it is clean it was well maintained. Also check the transmission dipstick for the same or if there is a fowl smell in the transmission could mean it wasn't maintain properly.
o To check the transmission, you can start the car put your foot on the brake and hold it there, then put it in drive and reverse to see if there is a clunking noise or slipping feeling while you hold the brake. Do not drive the car around that's usually not allowed. If there is excessive noise it could mean there is a problem and stay away from that one.
o Of course check all the lights turn signals, electronics etc so you know what may need to be repaired. In case there is anything wrong with it you will know about it before you bid on it. Or just don't bid on that one there will be plenty more to look at.
o Check for water damage by looking under the carpet in the front and in the trunk of the car; also look for water line stains around the engine. If a car has been in a flood you probably don't want to buy it. The internal wiring will be corroding if it got wet.
These tips will help you be prepared of what to expect at an auction and know what kind of car is a good deal. At these auto auctions some cars are sold as is, so it is the responsibility of the buyer check the condition of the car.
There is good and bad used cars used police cars and seized cars at these auctions. Some of them are in good condition and some are almost new and some are from insurance companies that have been salvage from floods, car wrecks etc. Just be sure to do a history search to know what has happen with that vehicle your interested in.
When you are saving 30% to 60% off retail value or below blue book it truly is worth taking a look at these actions and with the economy causing even more deals to come into these actions it is real good times save on an automobile purchase.