By: Gov Auctions | 10 August 2014
Repo Car Auctions - Buy Your Next Luxury Car
One of the most categories of cars to consistently find it auto auctions are luxury cars. In fact, there are several types of auto auctions where luxury vehicles will be non-existent. For example, fleet vehicle auctions are primarily comprised of vehicles which are fuel-efficient, require minimal maintenance, and are designed to provide comfortable and efficient commutes. Plus, the majority of businesses and government entities which purchased vehicles for their fleets are focused more on the bottom line in providing passengers with additional conveniences of luxury. One of the only types of auctions to consistently provide access to luxury cars are repossession auctions. If you are interesting in attending auto auction specifically to target luxury vehicles than a repo auction is your best bet.
The Basics of a Repo Auction
Fundamentally a repo auction follows a similar format and structure as other types of auto auctions with a few caveats. One of the most notable differences is the consistent use of a reserve price on behalf of the seller. This means that even if you have the highest bid there is no guarantee you will actually get the vehicle if your bid is below the reserve price.
Another important caveat to remember is repo auctions typically have more vehicles go through a second pass than other types of auctions. This is primarily due to the overuse of the reserve bid price. If the winning bidder on a vehicle does not meet the reserve price the lending institution has the option to send the car back to the auction block for a second pass. In most cases, any time a vehicle is on the second pass the reserve price is lower or non-existent.
Why Are Repo Auctions a Great Place to Buy Your Next Luxury Car?
Taking into consideration that repo auctions are going to be the best bet to find multiple luxury cars on the listing, the question becomes why would a repo auction be better than other common alternatives such as a luxury car dealership or high-end used car dealership.
1. Less Expensive than a Dealership
The most obvious reason a repo auction is the best solution is because it is less expensive than a dealership. It is important to remember that a used car dealer not only has to generate a profit on each sale in order to pay the sales staff the commission, but additional income must be devoted to overhead and upkeep. The significantly narrows the profit margin and leave little room for buyers to negotiate a deal the equal or lower than what they would find in a repo auto auction.
2. Greater Variety than other types of Auto Auctions
Compared to other types of auctions, a repossession auction is the best place to find a luxury car simply because more are available. Nothing drives up the price of a certain type or style of a vehicle at an auction than scarcity. If there are 100 cars available at a government auction only two of them are luxury vehicles then everyone in attendance searching for a luxury vehicle will be competing for those two cards. On the other hand, repo auctions often have a disproportionately large number of luxury cars. As a result each bidder is more content to wait until they find a great deal. This means multiple bidders will find a solid savings at the same auction because they will be less prone to over bidding on a particular unit.
3. Best Type of Auto Auction for Late Model Vehicles
The final reason to attend a repo car auction in search of a luxury vehicle is they are the best source of late-model vehicles. A majority of cars that go up for repossession are reclaimed by the lending institution within several years of the loan origination date. This is particularly true if the vehicle was purchased new rather than used.
It should be clear that anyone searching for a luxury car at the lowest possible price should seriously consider investigating a local repo car auction. Not only will it provide a variety of vehicles to choose from but the pricing will be significantly lower than what surrounding used-car dealers will be able to offer.