Surplus happens when the supply exceeds demand. Although the chances of having more cars than users are low, it’s still possible to declare surplus if there’s more supply of a certain model in the market.
Buying surplus used cars in Mesa can benefit car buyers in a number of ways:
They are often cheap.
Based on the law of supply and demand, the price is dictated by demand, and both are directly proportional. In other words, if the demand of a certain vehicle is high, the price is also high. It’s opposite if the demand is low. According to our definition of surplus, they are considerably cheaper than other types of cars in the market.
They don’t have to be necessarily old vehicles.
Not all surplus cars are old and with poor mileage. In fact, many auctions can sell late-year model vehicles at a very good price. Unless you’re terribly concerned with resale value, then a car released previously may not matter much. Moreover, if you choose your car very well, its value may even increase in the market. For instance, 2013 models of Lexus may be cheaper and less in demand than 2014 models, but compared to other car makes released in 2013, Lexus does have a higher resale value.
How to Buy These Cars
There are two best places to buy surplus cars: car dealers and government auctions.
For this article, let’s talk about government auctions. Federal and state agencies can declare surpluses when they have acquired new vehicles while retaining old ones. This can also happen during off-lease. During this period, agencies that have leased vehicles or fleet from the government through Government Administration Services now return the units. This can then lead to surplus, and GSA needs to dispose the old ones in order to acquire new assets.
Buying vehicles in Mesa car auctions can offer you the following benefits:
- You can rest on the fact that these vehicles are in good condition. The government sets aside enough funds for the maintenance of their vehicles.
- They do have clean titles. These vehicles have been acquired under government contracts, and it’s safe to assume they don’t want to get vehicles with problems.
- These vehicles are cheap. This is worth repeating for the simple reason that the government is not interested in earning a handsome profit for these cars.
Notes
- There are various surplus property programs of the government. Usually, surplus cars are sold first to other government agencies in Mesa such as non-profits, health, and schools. Those that are not acquired are then sold to the public for bidding.
- Not all Mesa car surplus auctions are open to the public, so before you consider bidding, check first if you’re allowed to participate.
- Inspect the vehicles. Although vehicles from the government are, in general, great condition, defects, no matter how minor, can still matter to you. Know the inspection schedule and bring along a mechanic with you.
- Know the minimum bidding price. It can be as low as $100 to as much as $500 or a few thousand dollars.
