Used Auto Auction Scams:
You've probably seen ads like this: Seized Autos from as low as $500. No Money Down!
Don't be a victim of auto auction scams. These listings aren't always what you expect, and what you do receive is information that is readily available for free. And although it's possible to buy cars at auction through foreclosure sales, you won't find the deals they boasted on their advertisements.
The listing you'll receive contains 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.
Despite what you heard about auction guides or seen in ads, autos at auction typically sell for their fair market value. These auctions attract a variety of buyers, including used car dealers, so bidding is competitive. At many government sales, the items are appraised before the sale and won't be sold if the bidding is too low. It's rare to find high value autos for sale, especially at bargain basement prices. Generally the cars that sell for $500 or less are damaged or junk vehicles purchased for scrap.
If you want a used auto, consider one from a car dealership.
