Used car auctions have been around for a long time and have remained popular throughout the years. They are an excellent option for car shoppers looking to save money on their vehicle purchase and for those interested in unique or hard-to-find vehicles. However, getting involved in used car auctions requires some knowledge and preparation if you want to avoid getting burned by a bad deal or unexpected fees. Here are some dos and don'ts to keep in mind when attending used car auctions.
Do: Research, Research, Research
Even before heading out to an auction, you need to take the time to research the vehicles available at the auction. Look up the make and models you're interested in, read reviews from car experts and owners, and check out the prices they are currently selling for on the retail market. This information is crucial in helping you set realistic expectations and bidding limits during the auction.
Don't: Rely on the Auction Site Descriptions Alone
While the auction site will undoubtedly provide descriptions of the vehicles listed, you can't rely solely on that information. Sometimes the listings will lack detailed information or the description may be misleading. In other cases, the auction house may offer a report that gives some more detailed information, but these are less common. Either way, it's best to confirm any information you find and if possible, even have the vehicle inspected before making a bid.
Do: Set a Realistic Budget
One of the biggest mistakes people make when attending used car auctions is to get caught up in the excitement of the auction and bid beyond their means. A good rule of thumb is to set a budget that is below what you are willing to pay to provide some wiggle room for additional fees or costs incurred during the auction. Moreover, you should always consider the cost of the car's repairs or restorations that might be necessary after purchasing it.
Don't: Neglect Your Inspection
Whenever possible, it's always best to inspect any car you're interested in before making an offer. Used car auctions can be a bit fast-paced, but this is not an excuse to overlook details. It's crucial to inspect the car thoroughly, both exteriorly and interiorly. Consider bringing along your mechanic if you can for another set of expert eyes to catch problematic issues.
Do: Get there Early and register
If you’re attending an in-person live auction, be sure to get there early to register for the auction and familiarize yourself with the auction process. Knowing how the auction works will help you make more informed decisions when bidding. Furthermore, if you’re already registered, you can move through the process more smoothly and avoid any delays when the auction starts.
Don't: Overbid
Overbidding is a common mistake even for seasoned auction attendees. During the heat of the auction, it's easy to fall into the trap of competing with someone else and paying more than the car's actual worth. Remember your budget and stick to it no matter what. It's better to let a vehicle go and wait for another than to overpay for a car you'll regret later.
Do: Get the Car's History Report
If you're able to view the VIN or the car’s number plate, you can check for the vehicle's history report. Doing so can reveal whether the car has a salvage title, has been in any accidents, or has any other issues that might raise concerns about the vehicle's reliability. A history report is well worth the investment as it can save you money and headaches down the road.
Don't: Rush the Process
Used car auctions can be intense, with vehicles coming up for bids one right after the other. However, don't rush the process. Take the time to evaluate each vehicle you're interested in with a critical eye. Listen to the engine and take note of how it runs, inspect the exterior for damages, and evaluate whether the car's interior is in good condition as well. Don't make a snap decision without fully evaluating the car, since you may miss important details.
Do: Remember the Other Costs Involved
When bidding on a used car at auction, you must keep in mind the additional costs that may come up during the sale. These include sales tax, registration fees, and any auctioneer commission. Additionally, if you're shipping the vehicle, factor in the cost of that process as well. These costs can add up quickly, so be sure to include them in your budget and bids if you end up purchasing the car.
Don't: Purchase a Vehicle that is "As Is"
One of the main risks of attending used car auctions is that the cars are typically sold “as is”, which means that you take them in the condition they are currently in. This is why it is always a good idea to inspect the vehicle beforehand. If however, a seller only offers the car “as is,” it might not be an excellent option to buy, unless you are prepared to take on all of the risks involved with the purchase.
In conclusion, attending used car auctions can be an excellent opportunity to find quality vehicles at an affordable price. Just be sure to do your research, set a realistic budget, and inspect the vehicles you're interested in thoroughly. With these tips in mind, you'll be able to navigate the auction process confidently and make a wise purchase that suits your needs and budget.