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.

Government auctions are a well kept secret that dealerships would rather you not know about. They purchase these vehicles themselves for very low prices and sell them to the rest of the public for good profit. The more consumers become educated about police auctions, the more competition they face at the auction plus car dealerships sales they could potential lose that business.

So why does 90% of the general public buy from car dealerships? Well that’s a good question and I think it comes down to education. People are simply not aware or these government and police vehicle auctions. The government would be ridiculed is they spent money on advertising. Here is a list of advantages and disadvantages in buying 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

- Typically there is a wide selection of vehicles (i.e. could find a BWM, Jeep, Porsche and Chevy at one auction)

- No middle tier channel (middleman) to go through or 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.)

- May pay less sales and new car tax

- Once you have an understanding of police auctions, you can start your own business (i.e. Sell cars on eBay or Autotrader.com).

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 it’s not a problem paying cash, or you can get credit elsewhere, then the advantages outweigh the disadvantages. Just remember to bring a mechanic or car expert who understands vehicles with you to the auction. They will inspect the vehicles that you’re interested in to make sure you get a great deal.