5th August 2008

Police Vehicle Auctions vs Car Dealerships – Which is Best?

posted in Auto Insurance News |
by Doug Smith

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.

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:

Pros:

- 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 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 is not equipped to handle inventory, everything must go

- Better income tax advantages (run as a business)

- Usually pay less car taxes

- Start your own business (i.e. Sell cars on the Internet)

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

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.

About the Author:

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This entry was posted on Tuesday, August 5th, 2008 at 4:46 pm and is filed under Auto Insurance News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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