When it comes to car auctions, you’re like to imagine motor-mouthed auctioneer exclaiming, “sold to the man in the yellow hat!” or something along those lines. It’s a high energy environment, for sure, and you wouldn’t be wrong in your estimation of what it’ll be like.
This is still true in some auction houses, but owing to the wonders of the internet, you may now participate in online auctions as well, which is pretty cool really.
Buying a car online intimidates me, but whether you do it online or not, the consensus is that auctions save you money and are surely less expensive than buying from a dealer. I don’t think there are any counter-arguments, however there are hazards associated with bidding at an auction if you aren’t prepared.
We thought we’d help out with a few helpful tips if you’re thinking about buy a car at an auction.
Get prepared before the auction
Make sure you have the funds to purchase an auction car before you start looking. It doesn’t have to be paper dollars in your pocket, but you should have loan pre-approval at the very least. Make sure you have extra cash on hand in case you need to put down a deposit if your bid is successful during the auction.
However, before you go to an auction to bid on a car, observe one or two as a bystander to see how it works. This will familiarise you with the process and prepare you for the environment on auction day.
Pre-auction homework is essential
Most auction houses have car posted online where you can check out what’s available and learn a bit more about the vehicles they’re selling.
Before the auction, you can normally go on site and see the vehicle in person. Definitely a good idea, even if it requires you add a bit more time to your car-buying process.
While they probably won’t let you give the car a test drive, you should be able to check and start it. If you’re not mechanically inclined, having a mechanic inspect the automobile with you is an excellent idea. Make a point of inspecting the exterior for dings or traces of previous bingles. Examine the interior as well – does the seem like it’s been driven by a smoker? How’s the upholstery looking?
Start the engine and listen closely. Is it a smooth or a rough sound? Are there any obnoxious ticking sounds? Check the vehicle’s history; does it come with a service log or a condition report? If not, take a step back and reconsider, you could be buying a Pandora’s Box!
Ask the right questions
You’re bound to have some questions about the vehicle you’re looking at. Don’t be afraid to ask them. In fact, choosing not to ask the question could end up kicking you in the butt later down the track.
You’ll want to know if the vehicle comes with a warranty. There isn’t always, but it’s helpful to know. It’s also worth noting that most auction houses have a no-refund policy.
Start by asking these questions so you can go in with your eyes wide open. Find out if the vehicle is registered as well. If the vehicle is registered, it is a favourable sign and indicates that it is a better choice than one that isn’t.
Check to see if there are any other costs to consider, like on-road costs or auction fees.
Decide how much you’ll bid before the auction
Check out the marketplace before you jump into any decisions about how much you’ll spend at the auction. It (almost) goes without saying, but at an auction, you should never spend more than the market value!
Remember that these cars were most likely missed by dealers, therefore you shouldn’t be paying market value for them. Don’t get caught up in the day’s atmosphere. Stick to your spending plan and don’t get carried away in the moment!
Know what to expect at a car auction
Before the auction begins, you must register with the auctioneer when you arrive on auction day. They will ask for identification, and you will be given a number and possibly a card to present. When bidding, the conventional rule is to raise your hand in the air. People from the auction house will be observing the group for bidders.
The reserve price is set by the seller. This is the lowest sale price they’ll accept. The vehicle won’t be sold if the reservation isn’t met on the day. However, once the reserve price is met, they are required to go ahead with the sale.
If you find you’re the highest bidder, now is the time to make arrangements to pay for the automobile. If you need more time to complete your payment, they may ask for a deposit and establish a payment date for the transaction to be complete.
So, now you have a decent idea of what to think about before you head to the car auctions, you still might be curious, is it actually a good way to buy a car? Well, if you’re looking for a good deal over good quality, then you’ve probably hit the jack pot.
You can still find a good, reliable car at an auction, just be sure you follow these steps to avoid any tears down the road… like 50m down the road from the auction house after you’ve bought it, that is.