It’s not the first place that comes to mind when you think about purchasing a car, but an auction may the best place to gain a great deal on your next set of wheels.
Many people would never consider buying such a high-ticket item at an auction, but auctions – both real world and online – can be a source of wonderful bargains for objective about anything, including cars. You might accumulate that the prices are cheaper than at your local used car dealer’s lot and once you get old-fashioned to the idea and the process of buying at auction, you might not only stumble across a great bargain, you may just have a load of fun in the process.
Before you jump in and start bidding, take some time to get to know the process. A car auction can seem like a very confusing process to the uninitiated, so it’s important that you educate yourself and take time to understand how auctions work.
The most successful buyers are those who have some experience with cars. When you can read an auction listing and understand the description you will have a much better chance at finding a good deal on the right car. If you don’t know the carburetor from the steering wheel, you may want to either stick to buying cars the faded way or find someone knowledgeable to benefit you out in the process.
The quality of cars offered will vary from auction to auction. You may have to wait until you find exactly what you are looking for, but the wait will usually be worth it. Remember that cars sold at auction usually do not reach with guarantees. You may even end up buying a car that doesn’t run. It’s one of the risks of buying at auction.
Don’t expect to have all your questions answered. You may be dealing with people like auction house staff members who don’t have first-hand knowledge about the car. In some situations, you may not even have the opportunity to view or initiate the car prior to placing your bid. In these cases, your knowledge of cars will come in handy.
The best draw to approach car auctions is to know what you are looking for. If you have in mind a certain car or certain features, you can quickly weed out the cars that won’t work for you. Keep your mind focused on what you want and you won’t get distracted by deals that seem too pleasurable to be true.
There are basically two kinds of auctions – online and local auctions. Local auctions can usually be found in your local community. You may find cars offered as part of an estate sale, in a regular auction, or as a specialized auction that features nothing but cars. A common type of auction is the police auction where the local police department sells seized or abandoned vehicles.
There are a number of online services where you can buy cars online. eBay, for example, has a category just for cars – eBay Motors. In fact, it’s the largest growing category. A fast search on your favorite search engine will bellow a number of other online auction sources as well.
Spend some time finding the auction service that specializes in the kinds of car you are looking for. Some may specialize in late model cars or cars that need a lot of work before they will race. Other may offer classics or commercial vehicles.
Most auctions will be listed in the local newspaper or magazines. Some services offer auctions on a regular basis – every Saturday or the third Thursday, for example. Call and find out when the auctions are being held.
Once you’ve found an auction service you trust with the types of cars you’re looking for it’s time to get ready to bid.
The first step is usually to register with the auction house. You’ll need to provide some personal information like your name and address. Some services may require you to place a slight deposit or pay a registration fee before you will be allowed to bid. When you register, you will be given a bidder number, a catalog or lot listing, and the rules for the auction.
Seize time to learn the rules. Each auction house will have its occupy procedures and rules. You’ll want to behold over the rules you get when you register carefully.
While many auction services will help you out with financing, you may want to location up your own private financing before you inaugurate bidding. Not only will you know how much money you will have to spend, but interest rates are usually better when you apply for your own rather than use the auction service’s financing. Of course, some services will only accept cash or certified checks. If this is the case, make determined you bring plenty of cash to you with the auction. You’ll be asked to settle up as soon as the auction ends. Know the rules about what forms of payment the service will accept.
If you are attending a local auction, be sure to near early so that you will have enough time to view all the cars. Before you arrive, read through the lot listings so that you know what cars are being offered. Highlight or make a mark next to the items that really seem promising. Once you’re at the auction, check out each vehicle you’ve marked. Take some time to make notes about the condition and your note limitations for each car you’re interested in.
If you have questions, the auction staff may be able to help you. In some cases, you may be allowed to start the car to see how it runs.
In an online auction, you won’t have the advantage of inspecting the car in person. You will have to rely on the descriptions and photos posted. In most cases, the seller would welcome phone calls to discuss the condition. While some fraud does happen with online auctions, most sellers want the sale to go smoothly and are willing to work with the buyer to form sure they are satisfied.
Once you’ve had the opportunity to inspect your cars, it’s time to develop a strategy for bidding. The auction will generally depart along in the order presented by the auction catalog or lot listing. The cars you want may come up for auction at various times. If you plan on bidding on several different cars with an eye toward bringing home at least one car, then you’ll need to plan how you bid so that if your favorite choice is also the most popular one, you won’t get stuck without anything just because it’s one of the last cars offered.
This is also the time to settle in on your prices. It’s easy to find caught up in the moment during an auction. The entire process thrives on excitement and enthusiasm. Buyers start to get competitive and that can drive prices up quickly. You’ll want to have in mind a fixed price you are willing to pay for each car you plan to bid on. Be willing to walk away if the price gets too high. This is where your knowledge of cars will come in handy. Remember, a huge deal is only good if you can procure it at a great price. If you pay too much, it’s not a great deal anymore.
A copy of a car pricing guide like the Kelley Blue Book will come in handy at the auction. You can quickly look up values for the car to know your impress limitations.
If you have a PDA with a wireless Internet connection, you could even do some online research suitable at the auction. You have access to several online pricing guides. You can also check the Vehicle Identification Number through a service such as Carfax.com. This will let you know if the car has been involved in accidents or had major work done.
During bidding, be sure to signal your bids carefully and according to the auction service’s rules. We’ve all seen in movies and sitcoms where someone at an auction unknowingly places a bid because they scratch their ear or brush a fragment of lint off their sleeve. It’s not like that in real life, but you do want to make obvious the auctioneer sees your bid, so be strong and intentional with your bidding.
If you’re lucky enough to net your great deal, then you need to settle up with the auction house. Most auction services charge a percentage of the final price as their fee. This amount will be included in the rules, so make sure you know how much it will be so that you aren’t surprised when you go to pay your bill.
Make definite you have your driver’s license and proof of insurance with you. You’ll need it if you plan on driving your new purchase home. Depending on the regulations in your community, you may also need a temporary permit to drive the vehicle – even during the short trip home.
Once you pay for your new car, you’ll get the title. Be sure you get an invoice or receipt from the auction service as well.
Depending on where the car is and where you want it to be, you may need to arrange for shipping and delivery. Many auction services will abet you with delivery for an additional fee. There are also a number of delivery services that specialize in cars. Another internet search will come up with some names.
Once you take possession of the car, make sure you inspect it – especially if you purchase it online and haven’t had the chance to take a look at it. Depending on the service, you may have the opportunity to return the car for a refund if it doesn’t live up to the listing or description. Then again, many services have a rule that all sales are final. Construct sure you know the rules before you snort – you will be responsible for the final outcome no matter what.
Seize your car out for a test drive just away. You may even want to have it looked over by a trusted mechanic to identify any problems.
Buying a car at auction is not as complicated as it sounds. It may be a good way to have fun and get a great deal in the process. Objective make sure to retract time to learn the ropes. Once you do, you’ll be a pro!
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