Until recently, used car prices had been going through the roof. They started getting cheaper when gas headed toward $4 a gallon, and then when the credit crisis hit, and there were a lot of repos on the market, they got even cheaper. Now that gas is back down under $2, they’ve gone back up somewhat, but they’re still cheaper than a while back. Of course, “cheap” is a relative term, and one man’s bargain is another man’s extravagance. What if you need a car fast, and you only have five hundred bucks? I’d head for government auto auctions. Cars under 500 dollars are available there.
Now, don’t get me wrong. At government auto auctions, cars under 500 dollars aren’t a dime a dozen. They really aren’t even plentiful. But you stand a very good chance of finding one or two such bargains at any given government auction you attend. And, yes, I’m talking about cars that actually run and are street legal. Now, it’s probably going to be quite a it older than most cars on the street, but that’s no problem. If you’re really looking for a cheap car, you can forget about a late model one, anyway. Those will be snapped up by the dealers, and they’ll go for a lot more than 500 dollars.
That’s because they’re looking for cars that can be resold fast, which is late model cars in great condition. That’s why dealers attend government auto auctions. Cars under 500 dollars don’t interest them, because they’re going to be too old to have much of a market. But that doesn’t mean there’s anything wrong with a 500 dollar car you pick up at one of these. It will just be older than average, and probably not in tip top shape. But you can certainly find yourself a 500 dollar car that runs if you attend a few auctions.