Cars can be sold at auction for as little as 10% of their full retail worth. Just think what this could mean to you: If you were just to move the car on, it would be easy to make a great profit very easily. For example, if a certain car retails at $10,000 and you were able to buy that car at auction for say $2,500 and then sell it again for say $7,500… well I’ve made the math easy, but I think you can see that there is money to be made here!
Car auctions are a great source for bargains in car deals, but you should not just turn up at an auction without being fully-prepared.
Here are the some important tips in order for you to get the best deal from a car auction.
• Ensure you have the money to pay for your bid!
• Don’t get carried away when bidding – stick to you budget and ensure you know what you maximum bid will be
• Be aware that there will be a buyer’s premium - Sometimes the premium is only a few hundred dollars, sometimes it's 5% of the winning bid, sometimes it's 10% of the winning bid. Be aware that this premium may make your bargain not so much of a bargain after all.
• Car auctions may require you to provide a bank draft so it makes sense to make some preparations – enquire beforehand with regard to the method of payment.
• Do some research on car prices and reviews, particularly if you are after a particular make or model. There are many websites available to find used car prices e.g. Parkers, Nadaguides or Edmunds.com, KBB even AOL or MSN to get a clearer picture. Make a note of recent prices for previous transactions.
• Ensure that you view the car before the auction starts… car auctions do not have a returns policy!
• Always inspect the cars you are interested in. Check out the doors, trunk, and hood making sure the open/close as they should… if they don’t this could mean that the car has been in an accident and it hasn’t been repaired very well.
• Check the VIN# plates - ensure that they are the same. If they are not, the car could be stolen or was in an accident and repaired using parts from other cars. Personally I would walk away if the VIN plates did not match… there are plenty of other bargains to be had
• You can also ask your friend or family member at home to conduct an AutoCheck Vehicle History Report or a free VIN# check through the internet: Autocheck.com or is-it-a-lemon.com is good for this service, this will tell you about the history of the car, whether good or bad.
• Check the terms and conditions of the contract carefully. Do this before you place any bid on a car to ensure everything is in order. The title to used cars at auctions may not actually be on site and you have to wait for some time before the title is delivered to you. Make sure the contract states how many days before you get the title. If it takes longer, you can get your money back, because at this point it's breach of contract. I personally would not bid on a vehicle unless the title is there. If they expect you to pay in full, they better have the title. But most cars there do not have the title, it's always "In Transit". One of my dealer friends once waited 6 months for a car title, after getting jerked around.
