How to Buy a Car at Auction

Today, because of the global crisis that left no nation spared, the number of houses and vehicles repossessed are at a record high. Financial institutions, government agencies, and car dealerships find themselves in a position of overstock. Since auto loans are a challenge to get nowadays, these institutions have no choice but to unload these repossessed houses and vehicles.

Not everyone can afford to buy a car in cash. Even if you can, it is much wiser to hold on to your dollars during times of crisis. Buying a car at an auction offers the cash-trapped individual (or the dollar-wise man) an opportunity to own the car of his dreams at a price that will save him thousands.

On the other hand, buying a car at an auction may be risky since you cannot test drive the car (before you actually bid for it) or have a mechanic check it out. However, at the price you are going to pay, it is worth the gamble.

If you do not have any experience in buying a car at an auction, it will be wise to attend one prior to your purchase plans. Just go there and observe. You may pick up some good bidding styles to get a good deal. Learn the process thoroughly.

If you have an idea as to the particular car brand and model you fancy, you can do some surfing on the web to search and familiarize yourself with its market value. You can opt to purchase a used car price guide if you prefer to have a hard copy. The point is you must know the “going rate” of the car you are interested in buying in order to bid well and get a good deal.

If you have a friend who is knowledgeable about vehicles and car auctions, enlist their company. Ask them to go with you to the auction so they can give you tips. Having an extra person there with you at an auction may also be helpful since at an auction, things really move fast and so it would be nice to have extra ears and eyes with you.

Keep to your budget. Sometimes, you can get easily carried away through the process of bidding. You may just end up spending more than you planned. Stay focused and keep to the budget.

It pays to go to the car auction early. The doors open a few hours before bidding begins. Hungry buyers can take a sneak peek of the cars for sale before bidding on them. Take advantage of this opportunity for car viewing. Inspect the car thoroughly for physical damage. Take note of the lot numbers and the price you are willing to pay for the car. Make sure to review the used car price guide. Note that you will have to pay a premium of between 5% and 15% on top of the bid price as buyer’s premium.

There are pros and cons when it comes to buying a car at an auction. However, if you have limited resources, this may be your best bet to the car of your dreams. Happy bidding!

Photo Credits: airwaves1

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auction, budget, car auctions, car brand, car dealerships, car price guide, overstock

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Buying and Selling, Car Tips

Posted by How To Car on January 8, 2012 in Buying and Selling, Car Tips. You can skip to the end and leave a response. Pinging is currently not allowed.