Why Buy Vehicles from Police Auctions over Car Dealerships?
There are advantages and disadvantages to purchasing a vehicle at a government or police auction instead of going to a car dealership. Many people don’t realize it, but the police seize thousands vehicles every month and in most cases auction them off to the general public at greatly 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
– Police auctions are held everywhere in US and Canada.
– 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 middleman for you to have to deal with or pay
– No annoying commissioned salesperson to deal with
– Seller is motivated and doesn’t want to handle inventory, everything has to be sold!
– Better income tax advantage (can be set up as a business for resale to spouse, kids etc.)
– Car taxes are typically less
– Once you understand process you can do as a side business (i.e sale cars in Autotrader.com or eBay)
Disadvantages:
– Most of the sales are cash only (any credit would have be done externally)
– No warranty period beyond manufacturer warrenty, although most used dealerships only provide 30 days or so
If you don’t mind paying cash for a near new vehicle, then the advantages obviously outweigh the advantages. Don’t forget to have someone with you who understands vehicles to inspect the ones you’re interested in.
Filed under: Sales