Police Vehicle Auctions vs Car Dealerships - Which is Best?
Instead of going to a car dealership and buying vehicles the usual way, have you ever considered visiting a government or police auction? If you’re not aware, the police seize thousands of cars and other vehicles every month and often auction them off to the general public at extremely reduced prices.
Obviously, police auctions are a secret that car dealerships don’t want you to know about. This is because not only is there one less potential customer looking to purchase a vehicle but there is also another bidder competing against him for the cars that are being auctioned.
Yet over 90% of the population still goes to car dealerships to purchase their vehicles. People are simply not aware of the great deals that police auctions have to offer. The government isn’t about to spend any budget publicizing the auctions either. Below is a list of pros of advantages versus disadvantages in buying vehicles at these auctions:
Advantages:
- They’re offered at much lower prices than anywhere else
- No matter where you live, there are typically many auctions held around your area
- Information regarding government and police auctions with vehicle listing detail is now available on the web
- Typically there is a wide selection of vehicles (i.e. could find a BWM, Jeep, Porsche and Chevy at one auction)
- no distribution channel (car dealership) to go through or to pay
- No pushy salesperson looking for a commission
- Motivated seller who doesn’t have the resources or time to deal with inventory, therefore offering vehicles based on no reserve bidding
- Better income tax advantage (can be set up as a business for resale to spouse, kids etc.)
- Usually pay less car taxes
- Once you have an understanding of police auctions, you can start your own business (i.e. Sell cars on eBay or Autotrader.com).
Disadvantages:
- You’ll probably have to pay it all in cash (which for some is a blessing)
- No warranty (although used car dealerships warranties are for short time periods)
If it’s not a problem paying cash, or you can get credit elsewhere, then the advantages outweigh the disadvantages. Just remember to bring a mechanic or car expert who understands vehicles with you to the auction. They will inspect the vehicles that you’re interested in to make sure you get a great deal.
