I just walked out of a dealer right before filling out the paperwork on a new Honda Civic. I’m pretty sure I pissed off the sales guy and his manager.
Anyways, I had a change of heart and decided to look at used cars. I stumbled on gov-auctions.org and I bought the membership. I know it has its risks and that you can find cheap cars but how often are there cars in good condition? I know used car dealers buy from such auctions. Do they bid aggressively? Am I better off just scavenging ebay motors?
I would appreciate any advice on auto auctions.
Pros and Cons of seized car auctions?
March 23rd, 2010 
admin 
Posted in Seized Car Auction 
PRO: The car usually cost less.
CON: You do not know the car’s history or if drives or runs properly.
there are alot of dealers at auctions. they have the money to spend. it really makes me mad because they have their own auctions,and the public is not allowed. best bet,look for small auctions in your area. have a kelly blue book (prices of cars/trucks). know what you want to spend,because they like to add 15% extra for a fee, and don’t forget taxes.
now.here is how to get a new car.
1. do you know you can custom build any car the way you want it? from paint-interior/trim/tires/rims… the computer will walk you through to build your car. it can save thousands.
2. go to costco.com go through the auto program, its $500.00 over invoice.(its as cheap as you get)
3. get financed through a credit union/or online yourself. do have the dealership do it.that’s how they get more money.
4.ask for any rebates?? older cars have them
5. college grad? another $500.00 off.
6. never buy extended warrenties/gap/lojack/alarms.just more b.s and more money.9you can get all that online.and alot cheaper).
Seized and impounded cars from law enforcement agencies are like any other used cars. You can find almost new luxury cars seized from drug dealers, or junkers that have been abondoned on the side of the road. Here’s more about it:
http://www.leaseguide.com/Articles/policeimpound.htm
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You never know the history of the auto that you buy at an auction. I don’t buy at auctions anymore.
I went to a car dealer auction here in Richmond, VA. Great looking van that was 2 years old. Repossessed by the bank. Had trash on the floor that was stacked over a foot high. Paper bags from McDonalds, Wendys, etc. Had over 100,000 miles on it. I didn’t bid on it cause I figured based on how dirty it was inside – that it had never had an oil change.
Instead I bought a Mazda van that was 5 years old. Had 100,000 miles, but not a mark on the body and clean inside. The van had been traded in by a local resident. High bid was about $3,500 but then a guy who owned a used card dealership showed up and bid against me. Not sure if he really wanted that van, or if he was trying to run up the price for the dealership that was selling it. I got the van at $4,750. Staff at my credit union, said I stole the van – their reference book (Kelley’s Blue Book ? ) had it at $10,000.
I had one of the salesmen at the dealership that sold the van, tell me that you needed to be very careful when buying at the auction. These vehicles could easily have major problems. You buy – WHERE IS – AS IS – even if you have to tow it off of the lot (hmm, same as a dealer)
3 years after buying the Mazda van, I had to replace the engine. A year after that, I had to replace the transmission. These days, I don’t see any of them on the road – if it is a 4 cylinder, but still see the 6 cylinder versions going by. I SHOULD HAVE checked Consumer Reports BEFORE buying a Mazda (I usually buy Hondas).
Went to an auction by General Services (federal) and they had a small metal jon boat, motor, and trailer. One guy bidding was in a business suit. Other guy bidding was in well worn blue jeans / looked like he didn’t have much money. To me – and a lot of the other bidders – these 2 guys got into an ego contest to see who could pay the most for that boat. You could feel the tension in the air and I was expecting to see a fight between the 2 bidders. I don’t remember which one ended up with the highest bid, but I remember thinking they had paid more for it than if they had bought everything new.
Went to an auction by the state’s highway department. Guy walking around looked like he didn’t have much money. Until it came time to bid on any piece of heavy equipment – then he would get the highest bid on most of the pieces he bidded on. I used to work for the highway department so I started talking with one of their employees about this guy. This bidder ran a heavy equipment "dealership" and would buy the old stuff – and if he didn’t have repair work from a customer for his employees to do – he would put his employees to work repairing the items he bought from the auction.
Have been to a couple of auctions where vehicles were being sold that had been seized by the state police. Most looked rough and the prices were high.
Before an auction, I go thru the list of vehicles and if I find something I’m interested in – I then research using Kelley’s Blue Book, eBay, http://www.vehix.com – what the price range is in my area. I set a price – and if someone outbids me – I just let them take it.
ALWAYS be willing to walk away from an item if the bids get too high.
As for your experience at the dealership when you were considering buying a new Honda. Most of my experiences have been the same way.
When my wife and I were looking to buy a new 1991 Honda Accord, we went to 3 dealerships and got treated in 3 completely different ways.
1st dealer, had a sticker on the car that listed the MSRP but then added a FMA of $3,500. I asked what FMA was and the salesman asked me "Why, can’t you afford it?" FMA is Fair Market Adjustment. Since the Accord was so popular, they could raise the price and get someone to pay it.
2nd, dealership would not budge from the MSRP. This was about 15 miles away from the 1st dealership.
Then drove about 30 miles to a small town. Dealer there had the exact same make, model and options for: $1,500 less than MSRP and would throw in pin stripe and mats.
So we avoided paying $5,000 by comparing prices at 3 dealers and driving about 50 miles.
Part of the price difference is based on dealers in a large town – with its own newspapers & tv and radio ads – pool their money to promote that make/model. This is recovered by raising the price of the auto at each dealership. The dealership in the small town – did not help pay for these ads.
Our son took over that Honda Accord in 2001, and its still going. About 250,000 miles on it now. We then bought a new Honda CR-V and a Civic.
You might find the 2 links below interesting. The one at Edmunds is by a former Business Manager at a dealership and it tells how they really make more profit from your purchase AFTER the price of the vehicle has been agreed upon. By selling you extras and adjusting their "special financing" for
gov-auctions.org is a scam to get you to pay $39.95 for public information.
Used car dealers buy most of their cars at dealer only auctions. Not government auctions.
I have bought & sold lots & lots of cars at auto auctions. Mostly bought.
Its possible to get a good deal, a decent deal and its possible to overpay for a problem you had no idea about.
People who have been buying cars at auctions for 10-20 years have experience. You dont.
I have sold to idiots at dealer only auctions. I have watched individuals overpay by bidding against shill bidders at public auctions.
Bottom line, auctions are no place for the inexperienced.
I know dealers who regularly buy out of the newspaper and sell at dealer only auctions.
You can buy below wholesale out of the newspaper if you know car values.
If you dont know values, you dont know what to pay. And if its not your business, you dont know values.
Your best bet is to test drive a dozen or so cars and then try to make a deal on the one you liked the best…if they still have it.