Government car auction : How can One find those $100 dollar cars?

Government car auctions are from where you always hear about "so-and-so" who got some killer deal on a new car for pennies or on those late nights when you stumble into the den, insomniac, and click on the infomercial with the guy yelling at the top of his lungs about how you can "save, Save, SAVE!" So what's the truth?

Government car auctions actually do happen, right?

So who is responsible?

Where are they held? When can I sign up?

And how can I save? Because with the way insurance keeps creeping northward and gasoline out of control, it would really be a load off to get a new or gently used car for a few hundred bucks and drive it away now.

So what's the deal? Let's investigate.

The General Services Administration runs these auctions and they happen all over the country.

First thing you need to do to be notified of these events is register with the GSA. Registration is free and there are no obvious, up-front fees.

Once registered you will be notified of an upcoming auction in your area.

You then are advised to check out the auction lot prior to the actual event. You can also look online for a list of the cars being offered for sale.

To dispel a quick myth, no one has ever gotten an automobile for "pennies" at a government auto auction.

It's just not happened. Bidding starts at the wholesale market value (Kelly's Blue Book) and bidding goes up from there.

If no one bids on the first go around of the price, the auctioneer will go down and keep going down until someone decides to bid and then it goes up again from there.

However, just because you've gone lower than you can imagine, even if you win the bidding at a low price, if the bid is ruled too low by the committee, the bid will be rejected and the car retained by the government to be sold at a later date.

If you win the bidding, congratulations! Now you need to pay for it and you need to do so that same day.

There are several ways to pay, these include cash, credit card, cashier's check, credit union cashier's check, traveler's check, postal or commercial money order, and properly endorsed Federal, State, or local government checks. Personal or company checks will be accepted only if accompanied by a bank guarantee.

You're also required to drive your car off that day; the auction lot will give you paperwork accepted by your DMV.

The lot makes no assumptions about how well the car works; your only chance to operate the vehicle is in its lot spot, day before the lot, where you're allowed to turn the car on and rev the engine only.

If you feel that the quality of the vehicle was misrepresented, you have a right to a refund.

You need to notify the government within fifteen days in writing and return the car, at your own expense, to a predetermined location.

Government car auctions can be a lot of fun and a quick way to get some cheap wheels. But you've got to be careful, lest you end up driving off a lemon.

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