| Buying at a civilian or government auto auction can | | | | greatly from the executive sedan driven slowly and |
| be a great way to buy a quality used car or other | | | | carefully to the work truck that regularly climbs, |
| asset. Like most things, though, information is key. | | | | curbs and mountains or gets abused in city traffic. |
| Below are some frequently used terms that you will | | | | * Repossessed Cars: Vehicles repossessed by |
| find helpful if you are interested in buying a car at | | | | financial institutions, banks and leasing companies are |
| auction. | | | | most often disposed of at auction. (I had a beautiful |
| * Off-lease: Refers to vehicles returned to a leasing | | | | Mercedes Benz 560 SL repossessed years ago - |
| company at the end of a lease term. Closed auctions | | | | someone probably got a great deal at that auction!) |
| are usually the only place for leasing companies to | | | | Repossessed vehicles can feasibly sell for less |
| get rid of their large volumes of end-of-lease | | | | because the financial institution's only real motivation |
| returned cars. The terms of a lease normally put a | | | | is to recover the amount owed on the car which can |
| restriction on the number of miles driven and require | | | | be substantially less than the fair market value of the |
| regular maintenance so they can be good bets. | | | | car. The condition of such cars may be marginal (if |
| Usually, off-lease vehicles are returned within 2-3 | | | | the owner can't pay the loan, repairs could also be |
| years, and often have some portion of their factory | | | | put off). There can also be intentional damage done |
| warranty remaining. | | | | by the driver who is losing the car, so inspect them |
| * Off-rental: Refers to the flood of late-model cars | | | | carefully. |
| that are replaced (generally once a year) by major | | | | * Trade-ins: Car dealer inventory that is aging or does |
| car rental companies. Like leasing companies, rental | | | | not meet their profile (for example an older |
| companies also generally rely on auto auctions to sell | | | | Chevrolet Malibu that was traded in for a new BMW |
| off their used inventory. Although these vehicles are | | | | M5 at a BMW dealer). Trade-in cars may have useful |
| generally well maintained and driven for only one | | | | extras and sometimes even valuable after market |
| year, mileage can accumulate quickly on a rental car. | | | | modifications. The overall condition of such vehicles |
| In addition, optional features on rental cars are | | | | varies greatly so inspect carefully. Some, though not |
| generally limited to an air conditioner & automatic | | | | many, may have some factory or extended |
| transmission. Usage of rental cars can be rough (think | | | | warranty period remaining. |
| about the last time you rented a car!) so it is safe to | | | | Many laws require dealers to disclose if a car has had |
| assume that each rental car will be driven by a wide | | | | a major mechanical problems or has been previously |
| range of drivers in a variety of driving conditions. | | | | damaged to the extent that it mut be classified as |
| * Company/fleet cars: Companies of varying sizes | | | | "salvage," "junk," or "for export only." There are |
| own cars, trucks and vans that they often keep for | | | | special auctions for these types of vehicles, (sold |
| only two to five years. (I typically drive a four to | | | | mostly by insurance companies) and if you have |
| five year old Ford F-150 truck that I buy from a | | | | access to reasonably priced repair services, you may |
| Northern California construction company.) These | | | | find great deals here. |
| vehicles are typically well maintained, but like rental | | | | As always, information is your primary ally. Arm |
| cars, often do not have more than the most basic | | | | yourself with good information before you head out |
| options. Like rentals, the use of company cars varies | | | | to the auctions and you will find many Great Deals. |