Police Vehicle Auctions – Pros & Cons Vs Car Dealerships

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.

In fact these auctions are a secret that car dealerships don’t want you to know about. An educated consumer could pose as a potential threat to at least a portion of their business.

So why does 90% of the general public buy from car dealerships? Well that’s a good question and I think it comes down to education. People are simply not aware or these government and police vehicle auctions. The government would be ridiculed is they spent money on advertising. Here is a list of advantages and disadvantages in buying at these auctions:

Advantages:

- Business Methodology allows much lower prices.

- Police auctions are held everywhere in US and Canada.

- Detailed listings of vehicles at government and police auctions are now available on the Internet

- There is usually a wide selection of vehicles that can be found at government auctions – sports cars, SUV’s, pick up trucks, motorcycles, jeeps, etc.

- No middle tier channel (middleman) to go through or pay

- No commissioned salesperson to have to deal with

- 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 understand process you can do as a side business (i.e sale cars in Autotrader.com or eBay)

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)

So if you don’t mind paying cash, or have access to credit, then it’s obvious that the pros far out-weigh the cons in favour of government and police auctions. Just as with a used car dealership it is a good idea to bring someone with you who can inspect and determine the vehicles condition.

The author is currently researching Night Vision Goggles and other spy gear, as well as the hobby of Family Tree Searches for upcoming review articles.