Government auctions of repossessed, seized, confiscated and forfeited vehicles are handled by the General Services Administration. This covers a broad spectrum of government agencies and auctions of these items are held on a monthly basis. Unless the auction includes military surplus items, they are open to the general public providing that there are available spots for potential bidders.
Each government agency dictates bidding rules but all require a valid drivers license, proof of insurance if you will be driving the vehicle immediately and a total payment in cash or certified check. Vehicles that are routinely auctioned from repossessions include automobiles, motorcycles, recreational vehicles, industrial equipment, boats and trucks. A dais of repossessed vehicles and items being auctioned is available up to 48 hours in advance of the start time with a 12 hour walk-through preview.
Government seized and repossessed automotives can come from a variety of places; most of them are vehicles that are confiscated during drug investigations and conviction on the part of the Drug Enforcement Agency. Another government agency that has the power to seize vehicles and assets is the Treasury Department; most of their confiscations and subsequent auctions are the result of unpaid taxes or defaulted loans. Usually these are coordinated with the Internal Revenue Service with the funds recovered from auctions and sales being put back into the general account.
Depending on which agency processed the paperwork on the confiscation or seizure, vehicles could realistically be auctioned off within a thirty day period. Local law enforcement agencies operate under different penal codes and have separate laws they must abide by. Federal and State agencies handle their own confiscation and repossessions without the aid of contractors. More often than not, they utilize special teams of trained officers to execute notices, remove property and process vehicles.
In regards to drug seizures, some automobiles are held as evidence. This could mean that a repossessed vehicle could be in a state of limbo for years. If a vehicle is used in the commission of a crime it can legally be confiscated without the option of it being returned to the owner. A repossessed vehicle that is obtained to rectify a debt will be auctioned or sold by the respective agency that implemented the original order. Government repossessed vehicles that are put up for auction are sold "as is" with no warranty.
Homeland Security and Border Patrol are two government agencies that routinely have auctions of confiscated and repossessed vehicles. Most of these are held in status until the Vehicle Identification Numbers have been processed and attempts have been made to contact or locate the owner if the vehicle was reported as stolen. The reasons for seizure, confiscation or repossession include suspected terrorist activities, carrying illegal material across the United States border, using a vehicle in the commission of a crime or violating any of the established Homeland Security policies.