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.

Obviously, police auctions are a secret that car dealerships don’t want you to know about. This is because not only is there one less potential customer looking to purchase a vehicle but there is also another bidder competing against him for the cars that are being auctioned.

Yet over 90% of the population still goes to car dealerships to purchase their vehicles. People are simply not aware of the great deals that police auctions have to offer. The government isn’t about to spend any budget publicizing the auctions either. Below is a list of pros of advantages versus disadvantages in buying vehicles at these auctions:

Advantages:

- Business Methodology allows much lower prices.

- Police auctions are held everywhere in US and Canada.

- Detailed listings of vehicles at government and police auctions are now available on the Internet

- There is a large selection of vehicles that can be found at police auctions including: cars, jeeps, trucks, minivans, ATV’s and more!

- no distribution channel (car dealership) to go through or to pay

- No commissioned salesperson to have to deal with

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

- Better income tax advantages (run as a business)

- May pay less sales and new car tax

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

Cons:

- Most sales are made in cash so credit is typically not offered

- 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.