| For years we have seen countless TV ads and even | | | | be done with the property in question and the local |
| received mailings telling of fortunes that could easily | | | | politicians will hold you to it. |
| be made buying cars and other expensive items for | | | | Thirdly, the government is not stupid. They want the |
| pennies on the dollar at local government seized auto | | | | maximum return on their items. The more they get |
| auctions. According to the ads and mailings the | | | | the more they can do with it. They have superiors |
| government needs to sell cars and luxury items, | | | | who watch the books and each item and where and |
| including million dollar homes, at a fraction of the retail | | | | how it is disposed of. All hot item cars like Mercedes, |
| value. Sounds really enticing, right? Can this be true? | | | | Ferrari's and other high dollar exotics are sold through |
| Well, it depends. First are you a government or | | | | agents at either nationwide wholesale auto auctions, |
| government qualified non for profit? If so you are | | | | public auctions or even on Ebay. |
| entitled to first dibs on these and other items and | | | | The wholesale only auctions are not open to the |
| you may qualify for a 25 to 50% discount depending | | | | public and are for auto dealers only. Each state has |
| on your status and use. For instance if you are a | | | | their own separate rules governing wholesale auto |
| organization that helps handicapped or blind people | | | | auctions, but they all generally run the same. The car |
| and you are chartered by your state government | | | | has a set minimum or reserve and will only sell above |
| you most likely qualify. The catch is that these items | | | | this minimum. Public auctions tend to get a lot of the |
| are not for resale and must be used in the nature of | | | | stuff no one else wants. And you many times are |
| the business. That would rule out the Ferrari's and | | | | buying items similar to foreclosures on the |
| such. | | | | courthouse steps, site unseen and history unknown. |
| Secondly, are you very powerfully and politically | | | | If there are liens, levies, unpaid taxes, etc. on these |
| connected? Are you going to add to the local | | | | items and you are the winning bidder you become |
| economy job and tax base or put major property | | | | responsible for them. That means a great deal could |
| back on the tax roles and make it useful. If so, you | | | | be the complete opposite a few days later when |
| may be able to get some great deals on state | | | | you find there is a $100,000 IRS tax lien on that |
| owned properties that are no longer needed. The | | | | house you bid $25,000 for. |
| problem here is you will sign a contract with what will | | | | |