An Auction of Repossessed cars is a great source of decent used and new cars at very nice prices compared with the vehicles listed values. If you're interested to get a great bargain but actually are not sure of how such auctions works, read the tips below.

So, what is a repossessed auction car actually?

We normally distinguish between two main types of repossessed vehicles;

- vehicles repossessed by the government
- vehicles repossessed by banks and financial institutions

Government cars
- seized cars
- surplus cars
- unclaimed cars.

Government car auctions help when the government needs to free space and get rid of their repossessed vehicles and get some income to cover administrative costs. Vehicles repossessed by bank and financial institutions are vehicles used as collateral for loans and when the loan-takers don't pay, they simply take the vehicles and put them up for Auction.

Which Automobiles Can You Expect to Find At These Auctions?

All kinds of automobiles of all price ranges trucks, pick-ups, fast sports cars, and luxury autos. The condition of these vehicles can differ a little but most of them are little used models and are functioning well. You can be lucky and find automobiles that are practically new and cost less than half of retail price.

How Are The Vehicles' Prices Determined?

A public auto auction starts at low prices and are then bid upwards by people who want to buy it. Some models are really hot and lots of bidders will fight to get it. In cases like this the price will skyrocket. On average the prices of auctioned vehicles are around 80 percent off the retail prices.

Auction Requirements and Rules

Like with all auctions there are requirements and rules for auctions of repossessed cars that the bidders have to follow;

- you have to be at least 18 years to be illegible to bid at auctions
- a driving license is also a requirement.
- to be able to make bids, some auctions will require a fee.

You should take a list of vehicle values, such as the Kelly Blue Book with you. It will make it easy for you to decide how much you are willing to bid on a certain car. If you don't have the necessary knowledge yourself, take a mechanic with you to inspect vehicles you want upfront.

Where Do You Find Repossessed Car Auctions?

Auto auctions are running almost every day all around the country. You can call banks, auction houses or local government agencies to get auction schedules near your hometown. Also check the local newspaper's ads.

However, the easiest way is going online to the auction directories. For a low one-time fee you will get access to their databases that show updated information about all auctions of repossessed cars. A word of caution: Some auction sites are trying to cheat you. You'd better stay away from them.

by Terry Carters