Several vehicle choices are available in the market, including new and used cars. Each of these may cost a significant amount of money. However, one option people overlook is purchasing a seized vehicle, usually at a public auction. These are automobiles that certain institutions lay claim to for various reasons, including failure to make payments. Here are eight things people should keep in mind when considering buying a seized car.

Knowing the seizure’s reason and the seller
Before buying a seized car, one needs to understand what the vehicles are and who sells them. Such vehicles are previously privately owned by an individual but seized by a government entity. While some of the most popular seized car auctions are tied to the US Marshals Service, about every local government also holds seized car auctions. An individual who looks into an auto auction listing should find it easy to identify who is selling the automobile, as very few auctions include a combination of sellers. These are city-seized, state-seized, or federal government-seized car auctions.

There is a specific location for sale
Most seized cars are sold at an auction at some point. Some might not make it to the auction for various reasons, including if its former owner reclaims it. Some seized vehicles may also turn into government fleet vehicles and might primarily be used by law enforcement as undercover vehicles. To ensure that such vehicles are readily available to the public, they are almost always sold at auction rather than directly. Doing a public auction ensures that the general public has an equal opportunity to purchase the vehicle.

The car is sold as-is/where-is
Seized cars are always sold as is, which means the individual agrees to buy the vehicles in their current state without any repairs. So, it is important to take the time to research each vehicle to determine if there are any red flags in its history. They are also sold where they are. If the automobile is not running, one may have to procure a method of towing it off the property. One must pay attention to the auction lights – red, yellow, green, and blue – which indicate the condition of the car being sold.

• A red light is a vehicle sold as is.
• A yellow light means the auctioneer will announce an issue with the vehicle.
• A green light indicates the car is successfully bid on.
• A blue light means the title is yet to arrive at the auction.

Never stick to one auction
While attending an auction can be a lot of fun, it is important to remember that it isn’t the only one. Individuals should attend multiple auctions, which could help them find the right price. So, one might save hundreds of dollars compared to what they would have spent by visiting only one seized car sale. Doing so could also help one gain more experience and get more comfortable with the auctioning process.

Vehicle inspections are a must if possible
While one may not be able to take the vehicle for a test drive, they might still be allowed to sit in it. In some cases, the bidder might also be able to start the engine. Therefore, experts recommend taking a mechanic along, if possible, to assess the vehicle’s condition. Getting to the auction early could give the individual more time to inspect the car thoroughly. They could check elements like the steering wheel, smells in the car, leg and headroom, and comfort. One could also check the exterior for dents or scratches, rust spots, windshield damage, and the condition of the tires. Carrying out these checks could help get a clearer picture of what one might be paying for at the auction.

Bidders must have cash ready
One of the most important things to remember before buying a seized car at an auction is that one will require cash or an approved loan. If the individual’s bid wins, one could pay with the loan secured from the bank and be prepared to cover a deposit once the bid wins. An individual searching for a seized car should also ask which credit cards are acceptable at the auction. Another money-related thing to remember is that there might be taxes, title, and registration fees involved in their purchase. If one is financing the car purchase, they might need to carry collision and comprehensive insurance from the lending agency.

Setting a budget could help
Buying a used car might be cost-effective if the individual knows what they are going for and understands the budget. Therefore, it is important to set a budget before going to the auction, which could help prevent one from getting caught up in the excitement and overbidding on a vehicle. Also, one must know what that vehicle is worth on the road before attending the auction.
So, even if the budget is flexible, one should not end up with an auction car that costs more than a new or pre-owned vehicle at a dealership would have cost them. This would beat the purpose of buying a sized car. One should also leave room in their budget for shipping, as this could cover any snags while taking it out of state or far from home.

Car auctions can get competitive
Seized vehicle auctions might be highly competitive, as several bidders might bid for the same automobile. This might also drive up prices and make securing the car one intended to buy difficult. If this happens, one should remember that walking away from the sale is better than over-bidding for the car.

It is probably easy to get carried away during an auction. This may lead to spending hundreds more than the car’s actual worth. It is better not to put all the eggs in one basket and look for more opportunities to get the best value for a seized car.