For many savvy motorists, car auctions represent one of the best ways to score an excellent deal on a used car. Nearly everyone has heard of a story of someone’s friend or family member who scored an impossible-sounding deal on an excellent car at an auction.
On the other hand, it is equally possible to hear the opposite story: someone who paid out for a lemon that started at the auction and then ran into nothing but problems afterwards. Given this element of chance, do auctions represent a good investment for those searching for a new car?
The Risk Worth Taking
Automobile auctions, especially those offered by the local government, are great ways to get seized cars that, in a majority of cases, are running perfectly fine. At the auction itself, the cars are generally started as an evidence of good working order, and nothing more.
Because of this, most of the people who make the best deals out of car auctions are automotive mechanics and hobbyist technicians who know enough about the inner workings of an automobile to take care of whatever small problems may be present in the vehicle.
Given the prices generally paid, which can be less than half of the car’s market value in any other scenario, even exorbitant repair costs can result in a beautiful secondhand car being enjoyed at a fraction of its normal cost. Being aware of what you are buying, though, is critical.
Doing Your Homework And Having An Expert On Call
When you begin planning to attend a car auction, there are two important things to pay attention to before shelling out any money. You need to know as much as possible about the history of the particular cars in question, and you need to know someone whom you can take the car to for assessment and possible repair.
If you are a hobbyist or automotive technician yourself, then the latter of these two needs is largely fulfilled. Learning about the car’s history, however, has to come at the auction and is dictated largely by the hosting organization:
• Police auctions – These auctions generally put up cars that have been confiscated from criminals. These automobiles can be damaged and have serious defects thanks to the rough lifestyle of their previous owners.
• Government Auctions – In cases where the government has more vehicles then it needs for a particular agency, or, due to whatever clerical error, has ordered multiple vehicles at a loss, it is possible for the public to benefit through the purchase of an auction car. These are often new or almost new and represent a great deal for the savvy investor.
• Bank Auctions – When banks foreclose on loans, they do not really want to take the property itself. The reason for this is that they know they will lose money on the auction and would rather have the loan fulfilled normally. However, this is not always possible, and, in this case, it is possible to get excellent deals on new or almost new cars whose loans have been foreclosed.