Used Car Auction Sales
Ads in newspapers and
magazines, on television and the Internet, and
in coupon mailings to your home may sound like
the ticket to your dream home or car. They offer
the chance to buy a big-ticket item at an online auto auction or
a used car
auction-for well below its market value.
What deals! Just call the toll-free number for
more information.
Is
there a catch? You bet!
Don't Be Misguided
If
you respond, you're likely to hear pitches for
guides to cars and homes being sold in your area
at great prices. But the guides aren't always
what they're promised to be. And if you buy one,
you may end up spending more than you planned.
Here's how it happens: When you place an
order (approximately $50 for each guide), the
salesperson might offer to include another guide
as well. What you won't be told is that you'll
be charged for the second guide, even though you
never agreed to buy it.
In many cases,
the businesses bill your credit card
or debit your checking account even
if you never agreed to buy anything.
They get your bank account or credit
card information under false pretenses,
sometimes claiming that they need the
account number to verify your credit
history or to "hold" your
order.
And when auction
guides arrive in the mail, chances are that they
contain far less information than you expected.
Actually, it's information that is readily
available elsewhere for free.
The bottom
line: While it's possible to buy cars
at auction, you won't find the "deals" advertised
in auction guides sold by fraudulent
promoters.
Auto Auctions
Despite claims to the contrary, the auto
auction guides these companies sell don't
contain specific information about dates and
locations of auto auctions or lists of available
cars. Rather, they contain general information
about auto auctions and addresses and phone
numbers - all of which are available in your
phone book. You'll still need to call for
details about upcoming auctions.
And,
despite what you might hear about auction guides
or see in the ads, cars at auction typically
sell for their fair blue book car values. These
auctions attract a variety of buyers, including
used car dealers, so the bidding can get
competitive. At many government sales, the items
are appraised before the sale and won't be sold
if the bidding runs too low. Indeed, it's rare
to find high-end or late model vehicles for
sale, especially at "bargain basement" prices.
And the truth be told, the cheap used car that sells
for $500 or less is usually damaged or a junk
vehicle purchased for scrap.
Not Proprietary Information
Auction guide companies aren't
the only ones with access to information about
federal government sales programs. In fact, the
information is available free or at a low cost
from the government. Some agencies maintain
mailing lists to notify people about upcoming
sales. They may charge a subscription fee to
maintain the list and cover their mailing costs.
The classified or business sections of
national or local newspapers often publish
information about upcoming sales. In addition,
trade papers like Commerce Business Daily
occasionally publish information on sales
programs. Your local library or Chamber of
Commerce may maintain subscriptions for public
use.
Some government sales programs also
advertise on local radio and television. Or you
may see notices posted at post offices, town
halls and other government buildings. You also
might want to contact individual government
agencies and affiliates about their sales
programs. Look for listings in your phone book
under "U.S. Government," or check out these
websites:
|
