Wholesale Auto Auctions

Car auctions abound in variety and some of them include wholesale auto auctions, government car auctions, public auto auctions and online auto auctions. Though this article primarily deals with wholesale auto auctions, there is passing reference to other types of online car auctions.

The majority of the vehicles auctioned in wholesale auto auctions are surplus cars liquidated by vehicle manufacturers, government departments, police department, banks and insurance companies, franchise dealerships and car rental companies.

There is also the case of autos seized or repossessed from organizations/commercial establishments due to their inability to make the car repayments. Almost a whopping ten million vehicles are sold every year through wholesale auto auctions.

Features/Benefits of Wholesale Auto Auctions:

• For the business owner looking for a posse of cars for his sales team, wholesale auto auctions give him the opportunity to buy a fleet of vehicles at a far lower price than what he would find at a dealer's outfit.
  
  
• The huge savings in car costs at such auctions can be attributed to the lack of overheads like showroom space and the accompanying advertising. Moreover, the salaries paid to car salesmen, other commissions and the cost of large inventories are made redundant with wholesale auto auctions.
  
  
• There are people who pursue a full time profession of buying cars cheap at wholesale car auctions and in turn sell them privately with a huge profit margin.
  
  
• In general, the vehicles at these wholesale auctions are sold for pittance compared to the prices they would sell for at a dealer's.
  
  
• Depending on the auctioneer conducting the proceedings, wholesale auto auctions can sell multiple cars in one lot or auction off each car individually.
  
  
• Wholesale auto auctions are comprised of both old and late model cars with popular brands like Mercedes, BMW, Honda, Toyota, Nissan and even SUVs and trucks.
  
  
• The rules governing wholesale auto auctions in the different states of USA varies from one state to another.
  
  

Drawbacks of Wholesale Auto Auctions:

• Wholesale auctions are not open to the general public.
  
  
• Only dealers registered with auctioneers conducting the wholesale auto auctions are permitted to participate. If you want to buy a car from wholesale auctions, you have to hire a car dealer who is registered to take part in the auction to represent you.
  
  
• All cars are sold in "as is" condition and the buyer is responsible for due diligence in checking out the antecedents of the cars being purchased.

There are other types like the insurance auto and salvage car auctions. These are dealers only auto auctions. The general public can participate in government car auctions. You can read more about government car auctions.

Government Car Auctions - Best Cheap Car Buy

If you are short of cash and cannot afford to buy a car, do not become depressed. Government car auctions from trusted government departments and the Police department come to the fore to assist you with pre-owned and seized cars sold at upto 95% off their original cost due to certain laws. Apart from cars, the auction also includes pre-owned and seized trucks and SUVs.

Many auctions begin with a $100 bid. The government cars auctioned are owned by the Drug Enforcement Agency (DEA), Internal Revenue Service (IRS) and the Federal Bureau of Investigation (FBI). The Police Department cars also go under the hammer.

These government vehicles are either pre-owned or surplus cars. They are in good condition and are not more than 3 years old. There are in excess of 4000 online car auctions held all over USA with cars sold off in each state.

Information For Getting The Most Out Of Government Car Auctions:

• Most auctions may require a bank draft so make sure you have cash reserves in your bank account.
• Select the cars that you like well ahead of the auction date and carry out a Vehicle Identification Number (VIN) check on them to check that their titles are in the clear. You can also find out if the vehicles were stolen or involved in an accident
• Get a Kelley Blue Book pricing for the vehicles you are interested in to get a fair idea of their market value
• As far as possible, bid on vehicles that have clear valid title on them
• You may have to pay a purchase premium of 5% to 10% on top of the victorious bid. Say for example you bought a car for $1000, you will have to pay a buyer's premium between $50 and $100 extra and making it $1050 to $1100 as the total price of your car
  
  Now that you have found an economical means of purchasing an affordable car at government car auctions, zip around your favourite city to your unbounded delight catching up with mates and work commitments. Get your vehicle of choice and save tons of $ simultaneously.