GSA Auto Auction Guide – The Step by Step Process

GSA Auto Auction Guide - How It Can Help You

Buying cars at the GSA auto auction can be a rewarding experience if you are  successful in your purchase. Success can be easily attained if you go the extra mile to find out exactly how the government liquidation vehicles are auctioned off at the Government Services Administration auction sites.

Knowing the procedures can greatly help you in getting your dream car at an outstanding price. On the contrary, lack of knowledge will only increase your chances of a bad transaction.

Keep in mind that not all transactions that take place at GSA auction sites end up in amazing deals. While there are many success stories on how buyers were able to get their desired vehicles at rock bottom prices, there are also traders that were not happy with their experiences of buying government auction cars. You can avoid the bad experiences by just knowing the process along with a couple of tips shared by some veteran successful traders.

Photo Credit : Kevin Krejci

Step-by-Step Procedures of Buying GSA Auction Vehicles

Register First

Before anything else, you must first register to participate in the trading. The good news is registration is free and it is available to all qualified individuals. Once registered, you should have a bidder number, which is a pre-requisite for joining the sale.

Check the Auction Catalog

The auction house will normally distribute a catalog that contains the listing of all vehicles that are up for trading. The vehicles are listed according to the order it will be offered on sale. Hence, you can properly manage your time if you know the scheduled bidding time of the vehicles that you are planning to bid on.

The catalog also serves as your guide to the different vehicles that are up for grabs. It contains important details of each unit such as the make of the car, the model, the year model, the mileage, the VIN, the color, and other basic features. This information can also be accessed online at designated online auctions websites.

Read the Terms and Conditions of the Sale

Before participating in the bidding, it is imperative to carefully read the Terms of Conditions of the sale. There are important clauses that you have to keep in mind. One of them is failure to redeem the vehicle that you won during the bidding process. You are usually allotted certain number of days to complete the payment. Otherwise, you will be put on default for breach of contract. In this case, the government will collect either $200 or 20% of the bid price, whichever is higher.

Inspect the Units

Prior to or during the trading day, it is important to inspect the available units for auction. Never place a bid on a specific unit without inspecting it first. The actual inspection can help you decide on the right minimum price to bid on, taking into consideration the actual running condition of the vehicle.

Scratches and minor damages should already be factored-in and appropriately deducted to the fair market value of the car. It is also highly suggested to start the engine and rev it up. However, a test drive outside of the GSA auction site is not possible.

Be There When Your Desired Vehicle is On Sale

When it is time for bidding, be there to place the bid. Obviously, if you are not around then you will miss the bidding of that specific unit. These are the procedures before and during the bidding. Another set of procedures must be observed if you win the bidding. Nonetheless, knowing these steps is enough to help you get a good bargain at the GSA auto auction.