Why are the cars so cheap at government auctions? How can this be true? Every day thousands of Americans default on their car loans or lease payments. As a result their new, or almost new, cars get repossessed or seized by financial institutions and auctioned off in a hurry because the cost of storing the cars outweighs the banks' ability to try to make the lost money back (same with police auctions, etc.). This is real and is being taken advantage of by a very small number of public citizens.
With the technology at hand today the buying process has not changed much A few years ago with Internet surfers multiplying, I for one thought it would only be a matter of time before a vast number of buyers would realize they can also shop Gov - Auctions in person or online driving up the bidding to a point where this type buying would come to an end for Dealers and Curbsiders but, here we are 2013 and nothing has changed.
What is a curbsider
A curbsider is someone that has several cars for sale, and that is not legal without a licence, they strive on government sites and will bid on vehicle's with blemished Title's such as Salvage - rebuild - flood damage - frame damage and offer for sale as quality cars online at free sites such as - ebay - craiglist - kijiji - and non government public auctions to uneducated gullible buyers whom shop price and miles only, thinking they found the real deal.
If you ever consider buying a vehicle with a blemished title ponder some facts beforehand
Frame Damage,,, Would you feel comfortable sitting on a chair that you knew had frame damage and now patched together, never mind going down the Hwy sitting on a car frame at 70 Mph. If saving money means more to you than playing Russian roulette with your life go ahead.
Flood Damage,,, Think about the vast series of wires that run throughout the entire car that have been submerged in water for how long ?
Rebuild Engine,,, Many buyers will strike gold without any problems, from a personal viewpoint they just never seem to perform the same as original factory build.
Hailstorm Damage,,, There will only be cosmetic damage, an excellent purchase if you can live with the Bonnie and Clyde appearance.
Online Auto Auctions There are 2 sources were reputable used car managers shop for inventory, dealer only auction sites and government posted auction sites, these two sites will have full disclosure history, any other auctions are totally out of the question. Curbsiders don't have a licence to shop dealer auctions but it's an open field at government auctions where they will bid on damaged cars, some of these cars have been in major accidents but will have a clean title " how " they have been washed through another state and issued a clean title,,, this is an area where thousand of buyers get fooled and at some point when it's time to sell or trade in at a dealership find out the car has been in an accident and the value could be 50% less than market value,,, GET YOUR OWN HISTORY REPORT WHEN SHOPPING.
Sellers Reputation Most sellers at public auctions are honest but there is quite a few curbsiders mixed in. You found a car that looks like the real deal at "example " eBay, you will most likely be checking the sellers reputation, looks great with many previous satisfied consumer transactions...... did you expect otherwise...... it is a simple SCAM for some sellers to get a new ID and create a list of satisfied buyers
Nasty factors you may miss looking at a clean history Report When an accident happens where an Insurance company is involved it takes time before it reaches a history report. A dishonest seller can purchase a history report while vehicle being fixed and show a clean history report to a buyer. check date issued.
A buyer should check the date on any history report along with pages being all there and numbered in sequence to make sure a vital page is not missing. Don't for one moment think I am being picky, these little factors happen every day.