You can save money by buying a car at an auction, but it takes some knowledge to do it right.
Article Quick Takes
- What should I do before buying a car at an auction?
- Bidding on the car you want
- Complete the purchase and take your new car home
- Is buying a car from an auction a good idea?
When it comes to car auctions, there are a few things you need to know before jumping in. First, be aware that there are different types of auctions – in-person and online. In person, auctions tend to be more formal, with more rules about how much you can bid and what you can buy. Online auctions are more flexible, letting you set your budget and find a wider variety of cars. Second, know the rules of the auction you’re planning to attend. Each auction has different rules, and being unaware of them can end up costing you money. Finally, be flexible with your budget. Cars at auction can go for much less than their market value, but they can also end up costing more if you’re not careful.
With that in mind, here are a few other things to keep in mind when buying a car at auction:
What should I do before buying a car at an auction?
Research what type of car you want
It’s important to do your research and know what type of car you want. Auctions will often have listings of the cars that will be up for auction, so you can do your research ahead of time. If the information is available, find out the car’s history – has it been in any accidents? Is it a lemon?
You should also research the current market value for the car you want. This will give you an idea of how much you should be willing to pay for the car. Use online resources like Kelley Blue Book or Nada Guides to get an estimate of the value.
Find a reputable auction company
Once you have an idea of what type of car you want, you’ll be able to start looking for auctions in your area or online. If you’re looking for online auctions, you can try websites like Ebay, Copart, or Manheim. If you’re attending a live auction, find out if the company is reputable by doing a quick search online.
It’s important to know the rules of the auction company. Some companies need a deposit to bid, while others do not. This is important to know so you don’t end up wasting your money on a deposit you can’t get back.
Attend the auction
If you’re attending a live auction, make sure to arrive early. This will give you time to get a feel for the environment. Once the bidding starts, pay attention to the other bidders and how they’re bidding. If you’re not comfortable with the way the auction is going, don’t be afraid to walk away.
If you’re bidding on an online auction, make sure you’re familiar with the platform you’re using, so you know how to bid. Again, pay attention to the other bidders and have a budget in mind. It’s easy to get caught up in the bidding and end up spending more than you intended.
Inspect the cars before bidding
If you’re able to do so, it’s always a good idea to inspect the car before bidding on it. This is especially important if you’re buying a car sight unseen. Bring along a friend or mechanic who can help you assess the condition of the car.
For online auctions, make sure to get as much information about the car as possible. This includes photos, the car’s history, and a description of any damage.
Bidding on the car you want
Have a budget in mind
Make sure you know your bid limits before going in. When it comes to car auctions, it’s important to have a budget in mind and stick to it. Once the bidding starts, it can be hard to stick to your budget if you’re not prepared.
As mentioned earlier, it’s important to know the value of the car you want before bidding. This will give you an idea of how much you should be willing to spend. Remember, the goal is to get the car you want at a price you’re comfortable with.
Start low
When you first start bidding, it’s a good idea to bid low. This will give you some room to increase your bid if necessary. Once the bidding starts going back and forth, you can start increasing your bid in increments. Remember, to get the car at the best price possible, you’ll need to bid strategically.
If you’re bidding online, “Proxy” bidding can be helpful. When you’re at the auction, enter how much you’re willing to spend on the car. The system will automatically bid for you, up to your limit.
Know when to walk away
There will be times when the bidding gets too high and it’s no longer worth it for you to continue.
If you find yourself in this situation, take a step back and remember your budget. It’s okay to walk away from the car if the price gets too high. There will be other opportunities to find the car you want at a price you’re comfortable with.
Complete the purchase and take your new car home
Congratulations, you are now the proud owner of a new car! Once you’ve won the auction, it’s time to complete the buy and take your new car home!
Payment – Live auction
If you’re buying a car at a live auction, you’ll need to pay for the car on the spot. Make sure you have the funds available, as most auction companies do not accept credit cards. Some forms of payment accepted are cash, direct deposits, and wire transfers. Always check with the company to see what forms of payment they accept.
Payment – Online auction
For online auctions, you’ll need to pay for the car within a certain timeframe. This is usually 48-72 hours after the auction has ended. You’ll also need to make arrangements to have the car shipped within this timeframe. If you’re unsure about the shipping cost, get a quote for the car shipping service. Again, always check with the auction company beforehand to see what their policy is.
Is buying a car from an auction a good idea?
It’s important to remember that you’re not buying a car from a dealership – you’re buying it at an auction. This means there are a few things you need to keep in mind before making your buy.
Pros:
– You may be able to find a car at a lower price than what you would pay at a dealership.
– Auction companies have a wide selection of cars to choose from.
– It can be a fun and exciting experience.
Cons:
– You may not be able to inspect the car before bidding on it.
– There are always risks associated with buying a car, especially a sight unseen.
– The auction company may not offer any warranties or guarantee on the car.
So, is buying a car from an auction a good idea? It depends. If you’re looking for a specific car and you’re willing to take the risks, then it may be worth it for you. But, if you’re not comfortable with taking those risks, it’s best to stick with buying from a dealership.
Auctions can be a great way to find a car at a lower price, but it’s important to remember that there are risks involved. Be sure to do your research and know what you’re getting into before making your purchase. Good luck!
