In these tough economic times, when people find themselves forced to save every cent they can and think twice before making valuable investments, buying cars at auction seems to be the most viable solution for those in need of a car, giving them the possibility to get really good deals.
The question would be how to find an auction, but it is not difficult, considering that many car vendors organize their own auctions, allowing potential buyers to look for the specific brand they are interested in. Then, there are the repossessions and the car hire enterprises.
Advantages of Buying Cars at Auction
Here are three basic reasons to buy your car at an auction:
The price is much lower than if you bought it the regular way. How much lower? Well, it depends on the car, but 50-70% less than the original price is not uncommon. No matter what the advertised price is, it can go even lower, if the owner is interested to sell.
While, at such auctions, you often find old cars, many not in their best shape, you can also find good cars, with lots of extras and at quite convenient prices. This is the case for repossessed cars: the initial owners had little time to use them before the cars were taken away from them because they were unable to keep up with their auto loan rates.
Modern technology makes buying cars at auction even easier. There are online auctions, where you can easily buy the car you want just by sitting in front of your computer, and bidding for it.
While auctions are a great way of finding cheap and good cars, you need to pay attention to some basic things:
First of all, you definitely need to attend several auctions. Do not buy from the first one! Take some time, see the available models and their price range.
Before buying anything, you need to assess its mechanical state. Some people are more familiar with car mechanics, others don’t know anything about it. If you fall within the latter category, always take someone who knows more about these things with you. Buying a car in a bad state, no matter how cheap it is, can bring you lots of unwanted costs.
Thoroughly examine the cars. There are lots of details that can prove really important, from the quality of the paint to the way the doors open and close.
When buying cars at auction, always keep in mind that the car might have lots of potential issues that you are unable to see at a first check.
Another thing you should know is that minor damage is frequent. It is a great thing to find a car with intact paint, but a small scratch or peeled area is something easy to fix. Try to calculate how much you need to invest in repairs and see if it is worth the price.
Check the VIN number! You find it on the trunk lid, the door and the windshield. Make sure all three are the same. This number can tell you if the car ever got total damage or if it was stolen.
When buying cars at auction, be careful with the bidding price. Decide for a maximum amount and do not exceed it! There are many cars available, and there is really no need to overpay.
While most auctions require cash payments, you may also benefit from financing opportunities. This usually happens at brand dealers’ auctions. However, be careful, since a financing plan means that you finally pay more, due to interest and tax. See if it is worth! Planning is essential when buying cars at auction.