If you are like me, then you are constantly looking for ways to save your hard-earned money, especially when it comes to major expenses like an automobile. Take into consideration the depreciation of a vehicle, no one should purchase a car without doing some homework and price comparision first. The Internet has become one of the greatest tools available to buyers when shopping for the best deal around. Lately it’s become more popular for consumers to purchase vehicles from government held auctions. The first time I went to an auction I was totally blown away at the prices these vehicles were selling for. These were not old jalopies with leaking motors and dilapidated interiors. These were late model SUVs, Sports Cars, Luxury Vehicles and Exotics that were selling for 95% less than the fair market price. In my state, there were hundreds of vehicles, all makes and models with clean titles. It’s no wonder these auctions have become so popular to consumers.

All of these vehicles were "seized" by government agencies or banking insitutions through different seizure, forfieture and surplus laws. Obviously, government agencies such as the DEA, IRS and Police accumulate huge amounts of property each year due to criminal activities. But did you know that banking institutions are constantly repossessing property due to folks defaulting on their loans? With the recent economic down turn, bank "repos" and managing these inventories have become an enormous burden on these loan establishments. These inventories are quickly liquidated and sold at government sponsored auctions for ridiculous prices. Most of the auctions start at a couple hundred bucks and go to the highest bidder. That’s where consumers can greatly benefit.

Before you head down to your local auction, it’s important to do your homework. Research the fair market price or Kelly Blue Book value so you know how much to bid. Most of these vehicles are late models that will be in showroom condition. If you do find damages it should be nothing more than cosmetic and this is due to the method it was acquired. These autos are guaranteed to have clean titles so you don’t have to worry about them having major damages. If you are not mechanically inclined, you may want to take someone with you that can inspect the vehicle and evaluate its condition. You can also get the VIN number and do a search on the vehicle history. Also, if you don’t plan on paying cash, then it’s a good idea to secure the financing before going.