There are two types of car liquidation: voluntary and mandatory. A voluntary liquidation is when a dealership agrees to sell its cars at a liquidation auction. There are several reasons why a voluntary car auction would take place. For one, when a company is struggling, it may decide to auction off its goods early enough so it can pay off its debt before things get out of hand. A person who is in debt for a vehicle may find themselves in a situation where they can no longer pay for the car. In this case, they can choose to voluntarily have their car sold at auction, hoping to sell it for enough to pay off the loan.
A forced liquidation occurs when a company or individual is forced to participate in this auction. This type of auto-liquidation is usually court-ordered, meaning they have no choice but to get involved. For example, if a car dealership goes out of business or files for bankruptcy, the cars are liquidated and auctioned off. Vehicles that are impounded or recovered by criminals such as drug dealers are sold at car liquidation auctions.
What does a car liquidation Auction means to you? Why would it be beneficial to know when these auctions take place? Most of these cars are in good condition. Many of them have great warranties and are sold at a low price, which means big savings for anyone in the new or used car market. It would be easy for you to check the history of any of these cars you are interested in. All you need to do is VIN number to get history via Autofax. Then you have all the information you need to make a good decision about the car you want to buy. Basically, it means you can get a good, reliable car at a really cheap price.