Buy a Used Car at Auction
Buying a car at an auction can be tricky. There are lots of things you have to pay attention to, and it's easy to get caught up in the bidding war and spend more than you meant to. Start with step one to learn how to buy a used car at auction and avoid the most common mistakes.
Steps
- Do your research beforehand. If you want to buy a car at an auction, it's essential to get as many information on the vehicles offered there as possible. That's why you should first go online and see the prices at the auction you want to visit, and compare them with prices at other auctions and on used-car pricing websites.
- Get there early. In order to be able to get a good insight into the condition of the car you are interested in, you should go to the auction a couple of hours before it starts. This way, you will have enough time to walk around and take a look at all cars that are displayed, and inspect the ones that have gotten your attention, so you can determine if the asking price is fair.
- Things that need to be examined include: tires, body, and lights.
- Pay close attention to what the auctioneer is saying. You should listen to everything that the auctioneer is saying about the car you want to bid on, and make note of every fault and defect he might state. This way, you will be able to find out if there any big defects in the car, such as with the engine, brakes, or the transmission system, which are major red flags and such cars should be avoided.
- Bid carefully. Before the bidding starts, you have to set a top price you are willing to pay and stick to it. The bidding process, itself, is pretty straightforward. All you have to do is raise your hand or the bidding paddle provided by the auction house when you want to make a bid. The important thing to remember here is to make sure you sit at a visible place, or as close as possible to the auctioneer, so that they can see every bid you make.
- Paying the tax. After you have won a car, the first thing you should ask is whether you need to pay sales tax on it or not, which depends on what state you want to register the car in.
- Don't forget the title. You can't register the car you have won at an auction without its title. Some cars don't come with a title at the time of the auction and they are expected to arrive later. If that's the case, you must make sure that the date of the arrival of the title is clearly stated in your contract, so you can get a refund if the title is not delivered to you within the agreed time frame.
Tips
- Get a catalog upon arrival, so you can get some more detailed information on each car's current condition, along with its history.
- Pay attention to other bidders and try not to miss any bids made by your competition, so you can know the price that the bid is at at any given moment.
- Bring cash. Bidders usually get a discount if they submit a cash deposit after winning a car.
Warnings
- If you make the winning bid for a car, you have to pay a buyer's premium on top of your winning bid, with the amount depending on the car's purchase price. Be sure to take this into account when bidding for a given car.
