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The 5.4-liter Expedition XLT model has 74,188 miles on it.
"This was her mayor-mobile," said current Wasilla Mayor Verne Rupright.
"Sarah had that for the rest of the time she was mayor, so we look at it this way. When you stop and think of who drove that... why not get the biggest bang for the dollar for the city? Who knows, maybe some rich somebody from somewhere wants [Palin's former vehicle]. She does have a great following and there are a lot of people who may want it."
Rupright said the vehicle has been sitting in storage and proceeds would go to the city's vehicle replacement fund.
"The bigger dollar we can get, the better. The trick is to replenish the vehicle replacement fund for the city without having to dip into the tax dollars.""Hey, if Elvis' Cadillacs can go for $1 million apiece, who knows?" he said. "Since it is a surplus vehicle, it's got more intrinsic value to the city in terms of dollars than just some piece of machinery.
As of Thursday, there were two bids on the vehicle.