Buying Seized Cars: Potential Bargains with Caveats
Are you looking to purchase a used car at a significantly lower price than usual? It’s possible to find great deals on seized cars, but be prepared for some challenges. Vehicles seized by authorities and sold at auction can offer substantial savings, but they often come with ‘interesting’ histories and potential damage.
Many people are now buying cars that have been confiscated and re-sold by authorities, typically using the Proceeds of Crime Act (POCA) or the Police and Criminal Evidence Act (PACE). These vehicles can be found through various auction houses that specialize in disposing of seized assets.
Significant Savings Available
At the RAW2K Vehicle Auctions website, I found a 2018 Audi SQ5 Quattro with only 31,000 miles listed for an initial high bid of £13,600. Comparatively, a similar SQ5 with 57,000 miles was selling for £28,320 on a popular sales website. The auction eventually closed at £17,310, totaling £22,048 including VAT, buyer’s premium, and release fee – still around £6,000 cheaper than buying from a dealer.
Mark Bennett, head of RAW2K, explained that buyers can typically purchase cars for 60% of their CAP value. Some vehicles are in good condition with full MOT, while others may have various types of damage.
Addison Pye from John Pye and Sons auction house noted that they’re selling more government and police vehicles each year, both due to increased supply and their success in securing government contracts.
Challenges and Considerations
While seized cars can offer great deals, there are several catches to be aware of:
- Vehicles may have significant damage, requiring professional repairs.
- Auctions are online, so you can’t inspect or drive the car before bidding.
- Cars may be located far from your location, requiring transport arrangements.
- Keys are not always available.
Bennett warned that about 50% of sold cars don’t come with keys, often lost during the seizure process or intentionally misplaced.
The RAW2K auction house handles vehicles from 26 of the UK’s 45 police forces, selling around 18,000 cars annually, with 95% being police seizures. John Pye and Sons works with over 25 police and government authorities, with these seizures making up about 75% of their annual 15,000 vehicle sales.
How Police Sell Seized Vehicles
Pye explained that POCA allows authorities to seize and sell assets linked to criminal activity, with proceeds reinvested into crime prevention and law enforcement. Vehicles taken as evidence under PACE that are never reclaimed also end up at these auctions.
While buying seized cars can be lucrative, it’s not without risks. Bennett mentioned unusual cases, such as a car containing a turtle in a tank in its boot, or vans filled with rubbish. Auction houses clear personal belongings but draw the line at vehicles with hazardous contents, which are crushed.
To succeed in buying seized cars, you need to be prepared to research thoroughly, act quickly at auctions, and potentially invest in repairs. With the right approach, significant savings can be made, but it’s crucial to understand the process and potential pitfalls involved.
