You can find many claims over the internet of government repossessed cars being sold at 90% off its original price. You maybe wondering if all these claims are true or not, and whether there is a catch that these advertisements are not disclosing to unsuspecting consumers like you.
Well the truth is, government repossessed cars are truly being sold at a greatly reduced price. However, you must understand that all these cars are second hand or used cars and their value has depreciated since the day it left the showroom, thus the low pricing.
Another reason why the prices are low at these government seized auto auctions is that it cost money to maintain and store these cars. And there are always many cars seized and repossessed by the government. To make room for more, cars have to be attractively priced and thus often sold at 90% off the current market value.
Many government agencies regularly conduct auctions, and most are general. Meaning, the auction is not only about cars, but everything else that the government has in surplus, as well as all seized and unclaimed properties.
Most government auctions have a 2 day viewing, allowing you to inspect the car of your choice in detail. The catch is that you don’t get to test drive any unit, but you can start the engine and base your judgment on the sound of the engine running.
Most vehicles will start at low price, but some bidders may tend to drive the price too high because of aggressive competition. If this happens to anyone of your interest, it’s best to drop it.
You must always keep in mind that these units are second hand, and the price should be reasonably cheaper. After winning, you can have the option of paying in cash or installment, although cash buyers receive additional discount.
If you are on a budget, then buying second hand cars at government seized auctions is certainly a good choice.