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FAQ: Buying Vehicles at Government Auctions
1. Do I need a dealer license to bid at a government auction?
Answer: In most cases, no. Most federal and local municipal auctions are open to the general public. However, some specific auctions for "salvage title" vehicles or certain wholesale lots may require a dealer license. Always check the specific auction requirements listed in our "State Directory" before registering.
2. Can I inspect the vehicle before placing a bid?
Answer: Yes, and we highly recommend it. Most government agencies (like GSA or local Police departments) provide designated inspection days. While you usually cannot test-drive the vehicles due to liability reasons, you are often allowed to start the engine and bring a mechanic to perform a visual inspection.
3. How do I pay for a vehicle won at auction?
Answer: Government auctions typically do not offer financing. Winning bidders are expected to pay in full within a specific timeframe (usually 24-48 hours). Accepted payment methods often include wire transfers, cashier's checks, or credit cards (up to a certain limit). Personal checks are rarely accepted.
4. Are there any hidden fees or "buyer's premiums"?
Answer: Many auction platforms charge a "buyer’s premium," which is an additional percentage (typically 5% to 15%) added to the final bid price. Additionally, you will be responsible for state sales tax, title transfer fees, and transportation costs. Always factor these into your maximum bid.
5. Why are these cars sold so much cheaper than at dealerships?
Answer: These vehicles are sold "As-Is, Where-Is." Since the government is looking to liquidate surplus assets or seized property quickly without providing warranties or reconditioning services, the starting prices are significantly lower than market value.