No question about it: A government seized auto auction is a great place to find a used car, one that you can buy that same day without any hassle or red tape. However, to avoid being ripped off, make damn sure you know what you're doing before you get into it. Owning a vehicle is not only a long-term investment but also involves a lot of maintenance.

What is not a scam is that the federal government really is actively making second hand luxury vehicles available for sale. There are some cars that the federal government owns but wants to get rid of it. These vehicles are usually vehicles that are no longer needed in service for the federal government.

However, most of these vehicles offered by the government are not actually owned by the feds, but have been seized because of criminal activities. Vehicles that are used in the commission of certain crimes, particularly drug offenses, often become the property of the arresting agency, depending on local laws. While these seized vehicles are occasionally used by the agency, in the vast majority of cases, the vehicles are sold at auction.

Before you start placing your bids on that sweet 'Vet that you fell in love with on first sight while browsing your favorite online auto auction site, remember that a picture is only worth so many words, which makes it difficult to get a complete assessment of a vehicle.

Do your homework and due diligence first. Here are a few things to keep in mind:

� First off, before you go to a car auction make sure you have enough money in your bank account. All cars purchased at a car auction must be paid in full. None of this "I'll give you half now and the rest when I get paid." That's not going to work. You must have the total cost of the vehicle.

� These cars are typically sold "as is" and not only is the auction house not responsible for any damages, but they are also likely not aware of them.

� They are not required to do inspections or to validate the condition of the cars that they are selling. You might want to purchase an extended warranty on the vehicle you win from auction so that you are covered for any unexpected problems or expenses.

� There are some cases where the automobiles will come with a warranty and if this is the case, they will let you know before bidding but typically there is not one, especially with repo cars.

� Car auctions are competitive, and it's possible to end up paying more than the vehicle is worth. Have your Kelly Blue Book handy and do not pay over the blue book price. Some people will run up the bid price because they have no idea what the auto is worth.

� If possible, bring along a specialist in bidding for a car. You need to get vital information whether such car is of good quality.

� Remember: state and government seized cars are those that are done by people who committed crimes, so the seized cars may be more damaged and more fragile than a car that the government may have seized in a different manner (a repossession, for instance).

� Be careful. Before you ever place a bid, pull a Carfax or Autocheck by Experian. This will reveal possible odometer and title problems. It will also reveal important issues like if the vehicle has been in a wreck or flooded.