Some may have trouble understanding how the government buys more than they need of anything, but many of the items sold at a government surplus auction are necessarily because too many were bought. Cars for example, are sold at a government surplus auction once they have completed their anticipated service life and the money from the sale goes to replace them with new vehicles. With the federal government, the General Services Administration buys a fleet of vehicles and leases them to the many agencies. Once their life span is completed they are sold at public auction.
Money from the sale of these vehicles at a government surplus auction will go to help pay for new fleet vehicles. Most of the cars and trucks sold at these auctions still have plenty of life left in them and most have adequately maintained during their lifetime. Listings are available from a variety of sources, including the agencies offering the sale, and locations are announced well in advance of the sale to give all interested persons the opportunity to participate in a government surplus auction.
Bidding at a government surplus auction can be fast and furious and, depending on the type of merchandise on the block and the interest it holds among that days’ participants, prices for an item can vary from one day to the next and even from one location to another location.
Reserve Prices Usually Not Made Public
When items are put up for sale at a government surplus auction, come may have a reserve price, below which the item will not be sold. Unlike a real estate auction that usually requires a bid of two-thirds of the appraised value, a government surplus auction may also have a reserve price, but will not be announced and if the winning bid is below the reserve the item’s sale will not be completed.
At a surplus car auction for example, there will be a representative from the GSA on site who has the final say on whether the sale is completed or not. If the bid price is too low the vehicle will usually be presented at the end of the government surplus auction that day or it could be moved to a different location and offered again at a later date.
Merchandise bought at a government surplus auction is usually provided on an as-is basis, meaning there is no guarantee that it will function as designed. In some instances it may also be sold where-is and the buyer will take possession at a location different from the site of the auction.
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