Money Source

Consumers check government auctions for deals

Wednesday, July 22, 2009

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NEW JERSEY -- (07/22/09) -- Many governments are in the red and many need money, which is likely why government auctions have become so popular lately.

Federal, state and local governments need the cash, consumers want a bargain and almost everything's for sale.

Looking for a deal on a car? Would you buy a used one?

"The average price is about $1,200," said Gov. Jon Corzine, D-New Jersey.

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"Fifteen hundred dollars, $2,000 -- a lot of these cars are really more valuable than that, so people are taking the opportunity to save money in a tough environment," Corzine said.

New Jersey is just one of many states holding government "garage sales" to make money at a time when they desperately need it. Federal and local governments are in on the game, too.

Almost everything's on the block. "You can buy a salt spreader truck? Who would want that?" asked reporter Alina Cho.

You'd be surprised. Watches, Lear jets -- some of it seized, some surplus, all for sale.

"You can get a container of soccer balls, you can get a disassembled MIG jet, you can get a boat, you can get a car," said Ian Aronovich from governmentauctions.org.

Government auctions aren't new, but in a recession, they are more popular. "We get good cars here. They're dirty, they just need to be cleaned," said one buyer.

"The body of it is good. The paint is not chipped, the transmission and oil look good," observed another prospective buyer.

One drawback: You buy "as is". No test drives.

Tenshia and Dyamond Ruffin are shopping for his first car. "There's one in the back. It's a Dodge, I believe. I like the color," Dyamond said.

"Are you kidding me? For a first-time car owner? He'll take anything on the lot," chuckled Tenshia.

If you can get it. Bidding can be fierce. "There's been a couple of incidents where there's been an actual fist fight where two customers were arguing over a car and I personally had to break that up," said Jacob Olearchik, who works in the New Jersey Distribution Lot.

This New Jersey car auction raked in more than 163,000, bringing the state more than $2 million in auction sales so far this year.

Sometimes buyers get a bit more than they bargain for. "I have bought a car with stuff in the trunk. I had bought a car with a bullet inside, with a fax machine inside," one man claimed.