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.

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:

Pros:

- They’re offered at much lower prices than anywhere else

- Police auctions are held everywhere in US and Canada.

- Information regarding government and police auctions with vehicle listing detail is now available on the web

- 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

- Seller is motivated and doesn’t want to handle inventory, everything has to be sold!

- Better income tax advantage (can be set up as a business for resale to spouse, kids etc.)

- Usually pay less car taxes

- Once you understand process you can do as a side business (i.e sale cars in Autotrader.com or eBay)

Disadvantages:

- You’ll probably have to pay it all in cash (which for some is a blessing)

- No extended warranty beyond what the manufacturer offers. Most used dealerships give only 30 days

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.