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Automobiles, just like property and equipment, are often auctioned off by the government and its appointed agencies for various reasons. You may at some point or other received an invitation to such auction that lists the items that are put up for auction on the day.
You may have attended a car auction but do you know the why were those cars put up for auction in the first place? What goes on from the time the cars were seized? Read on.

• What is sold? Why are they sold? Where do they come from?

Those cars that you see at auctions were either seized most likely from loan defaulters or are unclaimed or excess vehicles. Instead of being left to rot, they are seen as a source of income and are thus sold off through public auctions. Not only sedans are put up for auction. There are also trucks, SUVs, vans and even forklifts. Anyone can attend these auctions as long as you are more than 18 years old and have a valid driver’s license. On some occasions, the auctions are open to only licensed car dealers.

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• Who conducts the auctions?

These government auctions are conducted by several government agencies. In the US, the General Services Administration (GSA) performs most of these auctions. There is also the Department of the Treasury, Border Patrol, Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), Homeland Security, U.S. Marshals and the Internal Revenue Service (IRS). Local, state and county governments conduct auctions too from time to time. For vehicles that are seized due to law infringement, city and county law enforcement, fire departments, state police and the city and county administrative departments will be the one selling off those vehicles. Banks and lending institutions will be the ones auctioning off cars that were seized from loan defaulters. In most cases, these auctions are usually conducted by a private auction engaged by the government or the bank. This facilitates the process while ensuring that all rules related to public auctions are noted of and are complied with.

• How do these auctions work?

The auction is held at a particular location at regular intervals, either monthly, quarterly or annually depending on the organisers and the availability if vehicles. These would be advertised and notified to the public through notices placed in the local newspapers. Sometimes, brochures are given out to the public too.

There are no warranties or guarantees for vehicles sold at auctions. The price that you have to pay is just the vehicle price, unless you purchase the vehicle at a professional auction companies. Government-run auctions do not charge any buyers fees or registration charges.

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