Auto Auctions: How to Buy a Car Auction Step by Step
Auto auctions are the quickest way—you bet for something you want, you should recognize the car’s faults and strengths, it is worth, and you must possess a cool head to restrict bidding at a particular point. The main attraction of car auctions being that some rare cars can be bought which you will not get anywhere else. Auctions in a way help avoid dealer’s mark-ups and excessive ambitious sellers.
To buy a vehicle at auction may be fun, please have a look to know about the steps to buy a car at auction.
To find auction selling newer cars and can be attended by general public
Some auto auctions are open for common public, but majority are done for dealers mainly. The cars or vehicles usually sold off at auction are off-lease, ex-rentals, government vehicles or repossessions, trade-in sold by dealership etc. You can do a fast google search with “your city/area &auto auction& public” and get to know about an auction in your nearby area.
To look at the inventory list and select few vehicles you like really
There are usually more than 100 vehicles listed in auctions and you can select your preferred model as per suitable budget. Try reading auction catalogue or the online one, in details. It may be a famous model, but look into the history of the car. Are the numbers matching? Re-bodied or new? Other things like total ownership trail, tribute or re-creation all these must be noted.
Attending the auction is necessary
Though you have the facility to bid over phone, without physically being present at the venue of an auction but a personal visit to the place and inspection with your eyes is necessary.
Register as early as possible
Register early as a bidder and provide evidence you have the money to buy a car. You will need an account statement from your bank or statement of credit card, and asked you to sign a contract that discloses the buyer’s premium (a fee that is usually added to the bid). Do not show up very late and face a really long line; that means missing the very car you wish to buy. Get a list of the order of the cars at sign in and calculate when the ones you are interested in will cross the block. It is always wiser to register as early as possible, if you have a real intent to buy a car. In some auctions, they don’t allow to register after registering a certain number of people.
Check out the vehicles at the auction house
Generally every auction hosts a pre-viewing session a day before the actual event, where customers may start the automobile but test driving is not allowed. Some of the things you must check similar to buying an used car like inspecting underneath the car for fluid spills, popping the hood, and bringing someone who knows about cars better than you.
Due diligence for a handful of selected vehicles
You may check the nadaguides book value for U.S.A, or auto123.com for the best car reviews. Try checking auto forums for the selected models for own experiences.
Fix your ,mind and establish a base price that you can pay
You must make up your mind and fix on a budget for the car you are going to buy. Stop yourself from crossing the estimated amount even though other bidders bid more for that preferred car of yours.
Try visiting one or two auctions to know in details about bidding process
The trick is that the auctioneer will usually start with a higher bidding value, do not fall for it. In some cases nobody will put out first bid, and it can go on for some time, and finally the auctioneer will ask for the first bid. In cases there is no starting bid, the vehicle will be let go by the auctioneer without bidding because they need to move through the vehicles with some rate of 15 on hourly basis.
Keep an eye for the trend or mood of the crowd in the auction before your vehicle is up for sale
In every auction there are people who are spending a lot and a percentage is frugal. You may find certain tools, furniture, or kitchen cabinets sold off at 10% of retail. But on different days at the same auction venue you may need to be paying for full retail without any discount. There is no specific reason for it. You must be ready to walk away and remember there is always another auction in week or two.
Getting an inspection at the auction is a must, if available
Getting an inspection done for the vehicle at the Auto auctions is a Buyer Protection Plan. If you find anything improper after the search, you may go to arbitration and hopefully the seller will reduce the price or you may choose not buying that vehicle at all. Keep in mind that you must deposit some amount at the sale day itself. After buying the car at auction, on the next business day you need to make the total payment.
Bidding is best performed when the auction ring-men can see you directly. They usually watch the crowd of people; you must ensure that you are fairly close and that they may with you and your paddle. Some tend to hang back and join the bid late; it may work sometimes, but may create another bidding upsurge. You must set your maximum limit and never go over-board.
Auction houses generally have reputed shippers who are in charge of transporting your car within enclosed trailer and this shipping is the last part. Try to avoid driving by yourself; it may get you stuck in a soup with huge repair bills. Some states have sales tax, though some are lucky to have none, so you must pay the tax is at all it is applicable.
The prices of some cars at the auto auctions may be quite high, some not even a good deal like say it can be 20% higher in Canada than U.S. So your due diligence for vehicles must be good, or you can lose on a good deal.