Police Vehicle Auctions or 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:
- Business Methodology allows much lower prices.
- Auctions are frequently held in many locations throughout the US and Canada
- Detailed listings of vehicles at government and police auctions are now available on the Internet
- There is a large selection of vehicles that can be found at police auctions including: cars, jeeps, trucks, minivans, ATV’s and more!
- no distribution channel (car dealership) to go through or to pay
- No pushy salesperson looking for a commission
- Motivated seller who is not equipped to handle inventory, everything must go
- 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)
Cons:
- You’ll probably have to pay it all in cash (which for some is a blessing)
- No warranty period beyond manufacturer warrenty, although most used dealerships only provide 30 days or so
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.
