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| waltman |
 Posted: Mon Apr 24, 2006 7:10 am Post subject: The real deal on Government Auctions |
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Investing Sr. Associate
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I just found some info on government auctions. I always was a little skeptical, but it looks like they are for real. The trick is, you can get the info direct from the government - so don't pay big bucks for a subscription to some service!
For example, here are the results of a recent treasury auction in Los Angeles: http://www.treas.gov/auctions/customs/0627005.html
They had cars, computer equipment, furniture, and even some cargo containers of products.
Here are a few highlights:
PEARLS, CULTURED,TAHITIAN,SEMI-ROUND TO BAROQUE SHAPED,ATW 489.9 GRAMS,10.0-15.4MM,VERY LIGHT TO DARK GRAY COLORS,MULTI-COLOR OVERTONES,MODERATE TO HIGH LUSTERS,SLIGHTLY TO MODERATELY BLEMISHED, SQ7, TOTAL ON DISPLAY - IC2004272000001501002 - Sold to Celia Ball for $6,000
And it looks like they seize shipments for wholesalers: as in --
TOYS, REMOTE CONTROL,CARS (APPROX 298 PCS),TRUCKS (APPROX 180 PCS),TANKS (APPROX 90 PCS),NO AC ADAPTORS,APPROX 568 PCS TOTAL, SAMPLE ON DISPLAY -Sold to Riazati - $9,250
Yes - that is for 500+ remote control cars!! I assume you could buy them, then sell them on eBay, but they went for more than $9000.
But the big question is, are there really good deals to be had? I checked 3 of the auctions for cars from this date and compared prices to blue book values:
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Book
Value SoldFor Year Type of Car
$15,000 $ 8,500 2002 SUBARU IMPREZA WRX
$ 7,900 $ 5,500 1999 TOYOTA CAMRY CE
$41,000 $40,000 2000 MERCEDES BENZ S500
$21,000 $26,000 2001 Mercedes SLK230
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All prices rounded off- for book values I used the suggested retail price (like you would pay at a used car lot.) And I assumed everything just had the standard options pack.
The catch is, some of the cars had damage on them-- one said "Drivers window doesnt work", another said "Damage to trim on right side." So I would imagine you can get a better deal on one that needs repairs-- which is a good deal if you can get the work done cheap.
Bottom line- you can sign up for auction announcements and have them sent to your email for free. Check out: http://www.treas.gov/auctions/customs/subscrib.html |
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| Dave Rathbun |
| Posted: Mon Apr 24, 2006 7:46 am Post subject: |
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CFO
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The family of the girl I dated in high school was big into sailing. They purchased a Coast Guard seized sailboat for pennies on the dollar. But then they had to spend over $10,000 to refit the boat. The boat had been used by drug runners, and the CG had ripped out all of the electronics equiment, and had essentially destroyed the interior of the boat during the drug recovery process. There were no bullet holes or blood stains. 
In the end they got an awesome sailboat, but it wasn't so much of a bargain as you would think when looking at the price they paid at auction.
For example, the bulk purchase of 500 remote control cars... the guy paid nearly $20 per car, so they had better be nice or he would not get anywhere near that on eBay.
There are clearly people making money on this sort of activity. But I think you have to know your market, what is "hot" and what is not, or you could get stuck holding several pallets of worthless stuff. |
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| vetelmo |
| Posted: Mon Apr 24, 2006 8:40 am Post subject: |
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Moderator
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I bought a Mustang at an auction and paid half the blue book price.  |
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| waltman |
| Posted: Mon Apr 24, 2006 9:57 am Post subject: |
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Investing Sr. Associate
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I remember an episode of a TV show where the guy bought a mustang convertible at auction. The previous owner was some kind of a drug runner or something and there were people looking to put a 'hit' on him.
Eventually the hitman found the car and rigged it to blow up, and the new guy almost got killed.
I guess that's another thing to worry about...
(And don't forget when Homer Simpson bought the kewl Muscle car that turned out to belong to "Snake"...) http://www.snpp.com/episodes/5F06 |
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| nickspcs |
| Posted: Sat May 06, 2006 11:26 am Post subject: |
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Investing Sr. Associate
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