If you're interested in seized automobile auctions from the government, you'll want to understand a few of the associated words. This will help you to know what you're getting in to. You can get a good deal at a government auction, especially when there is no reserve price, but you need to be aware that all goods are sold in as-is condition. Buyer beware. Start with the following terms and you'll be well on your way to seized auction success.
Sealed bid vs. live auctionIn a sealed bid auction, bidders place their bid in an envelope. The envelopes are then opened and the highest big wins. This does not offer the best deals because you don't know what others are bidding and simply have to go with the highest you are willing to spend. A live auction is the more traditional style, where bidders bid in person and compete with each other.
Reserve priceThe reserve price is the lowest amount that the seller will accept for a product. If the reserve is not met in the bidding, the seller is not obligated to sell the item. This is a measure to protect the seller from being forced to sell a high priced item at a low price.
As-isSeized vehicles are sold in as-is condition. This means that the buyer is not assured that the vehicle is in good working condition. There could be significant mechanical damage. This is a risk that one takes for the low cost of cars at government auctions.
Asset Forfeiture ProgramThe Asset Forfeiture Program is the program that seizes assets in the case of a crime. It is sponsored by the U.S. Department of Justice.
U.S. Department of Justice to learn more about the program.
Online auctions for seized vehiclesNot all seized vehicle auctions take the traditional live format. It's also popular to hold auctions online.
U.S. Marshals ServiceThe U.S. Marshals Service is an official source of information about seized vehicle auctions. This is one of the best starting points if you are interested in purchasing a vehicle at a government auction.
U.S. Marshals Service website to learn about upcoming sales.