Auctioned vehicles are generally cheaper than market value, as the objective is to recover the money lost by the transit agency.
Depending on the condition of the vehicle, it can be sold for use (after regularization), or just for dismantling and selling parts.
DETRAN auctions are held regularly and open to the public, but it is important to be aware that vehicles are sold “as is”, without warranty.
It is therefore advisable to check the vehicle in person before placing a bid. Furthermore, the buyer is responsible for all vehicle regularization costs.
Which vehicles are auctioned at the official DETRAN auction
Read also: Federal Revenue vehicle auction
The Department of Traffic (Detran) frequently holds vehicle auctions, both for individuals and legal entities.
Below is some detailed information about what types of vehicles are auctioned
1. Seized Vehicles: Generally, most of the vehicles auctioned by Detrans are seized vehicles. These vehicles were seized for violations of traffic rules, non-payment of taxes or involvement in criminal activities.
2. Damaged Vehicles: In many cases, Detrans auctions damaged vehicles. These are cars that were damaged in traffic or other accidents, and which were assessed as a total loss by insurance companies.
3. Preserved Vehicles: In addition to seized and damaged vehicles, Detran also auctions off preserved cars. These are vehicles in good condition that have been seized from their owners for some legal reason.
4. Vehicles Recovered from Financing: Detran also auctions off vehicles that have been recovered from financing. These are vehicles that were financed, but the owner was unable to pay the installments.
5. Scraps:These are damaged vehicles that can no longer be legally registered for use on the road. These vehicles are auctioned for dismantling and use of parts.
6. Fleet vehicles:These are vehicles used by public institutions or companies that are changed periodically. When they reach a certain mileage or age, they are auctioned off.
7. Old Vehicles: Occasionally, Detran auctions off old vehicles that have been seized.
It is important to highlight that participating in Detran vehicle auctions requires some specific precautions, such as checking the condition of the vehicle, the value of the initial bid, the costs of any repairs, among others.
It is always recommended to seek guidance in the auction notice or from a trusted professional.
Is it worth buying vehicles at the official DETRAN auction?
Buying vehicles at auction through DETRAN can be profitable in certain circumstances, but it is important to fully understand the process and potential risks before making a decision.
Here is some detailed information:
1. Price:Vehicles at auction often sell for much lower prices than you would find at a dealership or in a private sale advertisement.
2. Condition of the Vehicle:Auctioned vehicles are generally seized due to fines and taxes, so they may be in good condition.
However, many vehicles come from accidents or court seizures, and the condition of the vehicle can vary greatly. It is very important to check the condition of the vehicle during viewing before the auction.
3. Documentation: DETRAN regularizes all vehicle documentation so that they can circulate again, so you shouldn’t have any problems with outstanding fines or tax debts.
4. Resale value: If the car needs repairs, it will be difficult to recoup the investment upon resale. Furthermore, the origin of the car as an auction vehicle must be informed at the time of resale, which may devalue it.
5. Online Auctions:Due to the growing popularity of online auctions, many vehicles are now sold this way. This can be an advantage as you can participate in the auction from the comfort of your home.
6. Note Fees:Many auctions also charge administrative fees, so it’s important to consider these additional costs when deciding how much you’re willing to pay for a vehicle.
7. Expert support:If possible, try to take someone with you who has experience buying cars to assess the condition of the vehicle.
Ultimately, if you do your homework, you can find good opportunities at DETRAN auctions.
However, there are also significant risks, so it’s important to go into the process with your eyes wide open.
Step by step guide to buying a vehicle at the official DETRAN auction
1. Check the Calendar: DETRAN regularly publishes the date and location of the auctions it plans to hold on its official website, as well as the list of vehicles.
2. Research the vehicle: Every vehicle auctioned has its condition and legal status informed on the website. Additionally, DETRAN allows people to inspect vehicles in person before the auction.
Check this information to get an idea of the vehicle’s value and repair needs.
3. Attend the auction: Once you decide which vehicle you want to buy, write down the date and location of the auction and don’t forget to take all the necessary documents, which usually include your Identity Card, CPF.
You will also need to provide proof of current residency.
4. Participate in the Auction:On the designated day, you will have the opportunity to bid on the vehicle you have selected. If you make the highest bid, the vehicle will be yours.
Remember, you will need to pay immediately or within a very short period of time, so be prepared.
5. Transfer of Ownership: After payment, complete the necessary documents to transfer ownership of the vehicle.
DETRAN will ensure that the vehicle is free of any encumbrances or charges.
6. Fetching the Vehicle: After completing the transfer process, you need to pick up the vehicle from the specified location.
According to legislation, the vehicle must leave the place where it is being stored by the tow truck.
7. Placing and Registration:Finally, you will be responsible for taking your vehicle for inspection and registration. Once these formalities are completed, you will become the rightful owner of the vehicle.
It’s worth remembering that each auction has its own set of rules and procedures. So, always check the information in the published notice before participating.
And, as always, do your research and bid carefully.