Government Auctions in Tennessee

You have all seen the ads that promise you a guide on how you can buy the car of your dreams for pennies through government auctions. These ads are in Tennessee newspapers, magazines, and even on television. What they are doing is selling you information that is already available for free. You'll be charged up to $50 for a guide that probably contains far less information than you expected and no more than is available free elsewhere. When you place an order, 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 by claiming that they need the account number to verify your credit history or to "hold" your order. The worst of these businesses will then sell that information to others.

The auto auction guides these companies sell don't contain specific information about dates and locations of auto auctions or lists of available cars. What they do contain is general information about auto auctions such as addresses and phone numbers. That is if you get the guide at all.

And now the truth about government auto auctions. Cars at any auction usually sell for near their fair market value. Government auctions attract a variety of Tennessee buyers, including used car dealers, so the bidding is competitive. The government normally has the cars appraised and won't sell them if the bidding is low. As in a regular auction they can put a reserve on the vehicle so the car can not be sold for much less than the appraised value. If the used car dealer doesn't want it you probably don't either. And if he does want it you will be bidding against him.

The same goes for foreclosed homes. Most well-maintained homes sell for close to their appraised value. The houses that sell at the low prices mentioned in the ads are in locations you don't want to live in or are falling down. Worse, these foreclosed homes are sold "as is." The government or bank doesn't have to tell you what is wrong with the house. Get a list of what homes are being sold and if you think you may want to bid on one pay for a professional home inspector to look at it.

Remember, auction guides are free or at little cost from the government. Also, if you do not want to watch for sales yourself there are legitimate companies that maintain mailing lists to notify people about upcoming sales. They usually charge a subscription fee to maintain the list and cover their mailing costs, but at least the information is real and worth paying for. For free information about foreclosure sales call the agency that is selling what you want and ask when the next auction is being held. The classified or business sections of newspapers often have information about upcoming sales. Your local library or Chamber of Commerce may also have subscriptions that tell of sales. Notices are often posted at post offices and government buildings. If the city you live in is auctioning off property they will post the sale in the municipal building.