Purchasing a Car at an Auction

1. Purchasing a car at an auction? Know the steps you should take.

2. Introduction There is a lower risk of over-reaching when purchasing a car at an auction although human nature and the desire to win at all costs can play its part. There is an element of risk but careful preparation and research should mitigate the risk significantly. As with all types of auction you have a fair chance of securing a bargain. If you get it right, then purchasing a car at auction can save you 10% to 30% when compared to purchasing a pre-owned vehicle from a local dealership. Here are some ways to achieve tangible savings at a car auction.

3. Know the Differences between Dealer Only Wholesale Auctions, Public, Repossession or Retail Auctions The dealer only auctions require a car dealer’s license. Car auctions are the only way for the dealerships to rotate excess inventory. Unlike the public auctions, the dealer only auctions offer close to new cars or new cars. They also offer recent trade-ins as well as off-lease vehicles. The public car auctions are open to all. This includes the savvy dealers and so prices may not be as low as suggested by the hype you see. You will see auctions advertised wherever there is marketing space - including online and offline media.

4. Prepare well When preparing for a car auction knowledge is power. You must always ensure that you are well informed about the car you intend to purchase and its market value. Research the prices that models of a similar age are being marketed and sold in the market place. There are a number of websites that provide you with this information and with detailed sales trends by make and model. If you don’t research well there is a risk that you will get carried away during the bidding process. It is vital to be prepared and to be objective before immersing yourself in the rapid fire environment of an auction.

5. Read Go through the auction catalogue in as much detail as you can. The model is fashionable. That’s OK. But what is the history of the vehicle and why is it being placed at auction? Attend Make sure you are physically present during the auction. No doubt, you will be able to bid over the phone but would you like to purchase a car that you haven’t seen?

6. Observe Others Be patient and watch other people placing bids. Be on the lookout for suspicious behavior where the same bidders are being over active on every lot. They are probably looking to inflate prices. Visit a few auctions before you start bidding yourself. This will help you to better understand the process and players in the market.

7. Avoid Getting Caught up in the Bidding Ensure you stay to your budget and don’t get carried away. Withdraw from bidding when you have reached your budget limit. Always remember that you can easily get carried away during bidding, and lose money by overpaying for a car. Never pin all your hopes on just one vehicle and always be prepared to walk away.

8. Conclusion Making a good buy at a car auction is dependent on preparation prior to the auction. You need to know the product, the average selling price and the bidding techniques that give results. Make sure you do your research and take advantage of information available online. We hope these tips provide you with the result you are looking for.

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