How to Buy a Car at Auction
With the advent of all things eBay and Amazon, everyone is talking about how to get the next best deal on the Internet. When you’re looking for a car, the usual go-to is a little bit of Internet research followed by a couple trips to different dealerships. You find the car you want and you sign on the dotted line. Done deal.
But what if you could try something cool and different and save some money? If you’re up to the challenge, check out an auction before committing to a car à la dealership.
Here are 4 steps to help you buy a car at auction:
1. Find an auction house that sells late model vehicles
Your first step is to locate an auction house selling late model vehicles. Most auto auctions are limited to dealers, but there are some open to the public. Google your city and “public auto auction” and pick a couple to check out.
Make sure you familiarize yourself with the terms of sale and arbitration policy of your chosen auctions so you know what to expect when you buy a car at auction. In addition, visit a couple of events to get a feel for how they work before you start bidding.
2. Pick your top choices and check them out
Normally, you can view an auction house inventory list online. Look through the offerings and pick a few cars that you like. Auction houses allow you to view everything for sale ahead of time so take a trip down and make sure it’s what you thought it would be.
You can start the vehicles but you can’t drive them anywhere. Make sure you take someone that knows vehicles and do all the normal things you do when looking over a used car. You can find out a lot by paying attention.
3. Know what you’re willing to pay
Due to how fast-moving and competitive auctions can be, it’s really important you’re clear on how what your bottom and top prices are going to be for your car. It’s almost like the auction itself is addictive, you get caught up in the action. Before you know it, you’re $3,000 over your maximum budget.
There’s a psychology that comes with being successful when you buy a car at auction. You have to be willing to compete fiercely but walk away when it gets to be too much.
4. The bidding process = hurry up and wait
When check out different auctions, watch how the bidding process works. When a lot comes up, watch how the auctioneer introduces a starting price for the crowd. Don’t take the bait and jump on the first price someone suggests. Wait until the auctioneer opens it up to the crowd and go from there. You’ll save some cash that way.
You won the bid. Now what?
When you buy a car at auction, you’re expected to put a deposit down on your vehicle the same day and pay the balance within a day or two. If it’s available, get an inspection done at the auction house.
If not, make sure you schedule an appointment with a mechanic and drive your new purchase straight over for an inspection. You’ll need to get car insuranceorganized quickly so you can get it to the garage. If they find something wrong, you can negotiate something through the auction house’s arbitration process.