Car auctions are gaining popularity these days. There are several questions regarding this topic for many private buyers. To begin with, there are two types of car auctions – public auctions and private ones.
Public auctions are open to all, which means, you can find all kinds of vehicles there from old beaten-up piles of metal to newer cars. Therefore, it is extremely important for you to have someone with you who can inspect the vehicle you are choosing.
Dealer auctions on the other hand can be very different from the public ones. Only those who have dealer’s license can attend the bidding process. Here is where you can find new or almost new cars.
How does it work?
You can attend an auction either in person or online. Cars are listed with their starting prices and you can choose which car to place your bid on. If you are interested in a car after inspecting it, you can place your maximum bid on the car. You must realize that there will be other potential bidders too. Therefore, do not be disappointed if your first bid did not go as per plan. However, do not get carried away and overspend unnecessarily.
Once you have placed the winning bid, the car is yours! However, there will be certain auction fees you will be asked to pay. But this can always be researched and asked for beforehand so you can include the auction fees in your budget too. The rules for these kinds of auctions are pretty straightforward. You find a car you like, you do your research, set your maximum bid and you buy the car. Yes, auctions are where your local dealers buy their inventory, which means that the prices at auctions are way less than buying from dealers.
Tips for first time bidders
Here are the things to keep in mind if you are a private buyer in a car auction for the first time.
Choose the right auction: There will be several types of auctions – decide on the type of aucvtion you want to attend before you start bidding.
Do your homework: As much as you should know which auction to attend, it is important to know what car you are looking to buy. Do your research properly and understand the car you are looking to place your bid. Have a fair understanding of how much the used car is worth.
Plan your budget: Always make sure to have a maximum budget in mind. Do not let emotions cloud your mind and financial decisions. Do not overspend on a car you had prepared a budget for.
Check the car: Although an independent inspection guarantee accompanies some cars, it is always best to check for faults in the used car yourself. Have a trustworthy car expert with you when you go for pre-owned cars.
Walking away is okay: If you are not satisfied with what you see at the auctions, do not hesitate to walk away from the place. You do not have to buy a car just because you were at an auction. If the budget and the specifications of the car does not fall under the criteria you had set for yourself, refrain from making any purchase.