You may have heard the saying that the time you drive a brand-new car out of the dealership parking lot, it loses 50% of its retail value. Also, you may have thought that the only place you can get an affordable car in Rhode Island is buying form car dealership or from a private seller, with the expectation that you can haggle, bargain, and negotiate your way to a great deal on a good car. But did you know that there is an entire untapped market of vehicles in excellent condition being sold for pennies on the dollar? This market is known as government car auctions.
An auto auction Rhode Island is where the real bargains can be found. In a used car dealership, the owners are always looking to recover their money from the sale of their car. They determine their cars’ retail value and price their vehicles accordingly to make a profit. Government and police car auctions are a whole different case altogether. These cars are not sold with a profit motive. They are being resold through government-facilitated auctions to recover as much money as possible in order to get rid of the car, which is a liability to the government agency or financial institution that is holding it in their inventory.
How do cars end up in a Government and Police Car Auctions?
The cars in these auctions come from various sources. Some of them are:
• They are repossessed from car owners who took a loan to buy the car and now they have failed to come up with the payment amount.
• The IRS may seize a car due for failure to pay your income taxes.
• Law-enforcement agencies may seize your car if they are involved in criminal activities.
• If a government agency has a surplus of cars or has decided to get new ones, they may choose to get lay off some of their vehicles.
Why are The Cars Extremely Cheap?
Cars are sold cheaply through auctions because the objective is to unload the seized inventory from the agency that has acquired it. The government by law must dispose of these assets by way of a public auction to the highest bidder. In some cases, the proceeds of the auction will go to the beneficiary of the auction, who is often the lien holder. In other cases, the proceeds will go to an established trust fund. The government can also use the proceeds from the auction to satisfy its own claims against the previous owner of the car, such as unpaid property taxes or civil litigation fees.
Some people may have the uninformed impression that cars sold through auto auction Rhode Island are beat-up or somehow in less-than-good condition. That is not necessarily the case. If the vehicle was owned and well-maintained by the owner but he/she passes away, or gets convicted of a crime and sent to prison, or fails to pay his or her taxes, then this car will be seized. On the other hand, an impounded car could have been owned by a person who just did not have the money to maintain his car properly, or whose car got into a minor accident. At a government auto auction Rhode Island, you will find all kinds of vehicles from compact cars to exotic luxury cars to race cars.
Why Don’t Many People Know That Government Auctions Exist
If auctions are the best places to find cars at bargain prices, then why doesn’t everybody shop for their vehicles at auctions rather than going to car dealerships? The answer is that it’s a matter of perception as well as lack-of-information. Auctions are rarely ever commercially publicized, especially government auctions. Government auctions are however publicized in newspapers in the legal notices section. Also, as mentioned above, people do tend to have misconceptions about seized or repossessed cars as being “tainted”, or in “sub-prime condition”, or “beat-up” inventory that is not worth spending the money on. They would much rather pay thousands of dollars on flashy new cars that are heavily advertised by commercial dealerships.
Do These Cars Have a Warranty?
Are the cars that you find at government and police car auctions offered with any type of warranty? Unless the vehicle comes with a transferable warranty that has not been voided, or unless you’re able to buy your own warranty, the answer is no. Cars sold at auctions are typically sold “as-is”. But then again, so are cars sold through newspaper listings by private individuals and even by dealerships. But before you attend an auto auction Rhode Island, you should find out whether you will have an opportunity to inspect the car before you bid on it. Even if your intention is to buy seized cars that are in need of repair, with the purpose of fixing them up and reselling them, you should know whether you’ll have a chance of inspecting the car before buying it.
In a government auto auction Rhode Island, there is a wide variety of vehicles showcased. You can find the right car for you, be it an SUV, a van, or minivan. Also, you can get increasingly larger vehicles such as trucks in car auctions. It is not so unexpected to see a large diesel truck or recreational vehicle auctioned off these days. Before going to a car auction, ensure that you do your research and find out the rules for that auction. You may be given a chance to inspect the vehicles before the auction takes place. Take advantage of this to get the best value for your money. Be cautious of how much you bid in these auctions to ensure that you don’t go beyond your budget. Set a budget to help you get the car that best fits your needs, but be flexible if need be.
Have you been looking for an inexpensive car in Rhode Island? Government and police car auctions provide you with the chance of owning a car conveniently and affordably. Take advantage of this opportunity and get the car of your dreams at a 90% discounted price.