Why are the prices at government salvaged car auctions as low as 95% of the normal price?
To understand this you need to know the difference between an auction situation and your local car dealer: At salvaged car auctions the price of the auctioned vehicle is determined by the audience. Usually in a salvage car auction, several bids are made on a vehicle that is up for auction, and the bidder with the highest bid gets to buy the car. In contrast to this, the price at your local car dealer is chosen by the car-seller at his own determination and most of the time the only thing you can do is to accept the price or to walk away. This is why the prices at such auctions are significantly lower than the prices for comparable cars at your local car dealer.
Most of the salvage car auctions are held by the US Government and affiliated agencies. They need to make regularly such auctions to get rid of seized, repossessed or salvaged cars in the stocks especially because the maintenance of all the salvaged, repossessed or seized cars does cost a lot of money for the government and is not in line with a reasonable usage of the tax payers money.
Right now, with the current financial crisis and the occurring global economic downturn, a lot of people are in default with repaying their loans and mortgages of their houses or car loans. Due to such default, the number of confiscated cars and salvaged car auctions is more and more on the rise. For many people with limited financial funds and who are in desperate need of a car these salvaged car auctions have become a life saving solution. The savings are immense and often they not only find some average car, but a premium car they always have dreamed of and never imagined to afford. The premium cars and SUV’s many managers have bought with a loan before the credit crunch hit hard on them are now for sale for everybody who is clever enough to jump on this unique opportunity.
In order to make the best bargains and find the best salvaged cars at an auction, one needs to know some about the tactics and the formalities at these auctions. Without the knowledge it can take more time to get the best deal or to find the right car. To really save as much as 95% you need to make yourself familiar with a very few clever guidelines. Following these few fundamental tips closely will help you get your salvaged car you have always dreamt of. If you feel that you are not too comfortable about the bidding mechanism or cannot properly identify the car condition, then it is better to read more on this topic.
I cannot stress this enough: Many people could have saved a significant amount of their money in salvaged car auctions auctions if they had obeyed some simple rules and had some fundamental relevant information regarding the car desired to be purchased. You should at least read some step-by-step guideline of the auction process and the things you need to bring with you. Help of the internet can definitely be taken at this stage.
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Hector Calavera is a car-fanatic who loves to purchase and resell cars and apart from being a businessman, he loves to write about cars, music and fine arts.
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