It’s now easier than ever for car enthusiasts to experience an auto auction. The explosion in collector car prices and increased interest in auctions mean the bigger auctioneers such as Mecum or Barrett-Jackson have cable-TV deals and live video streaming that bring the excitement of a bidding war or a big sale into people’s homes.
If you’re thinking about going to an auction — either to buy that new-to-you ride or just to take in the atmosphere — there are some things you should keep in mind before you take the plunge.
10 Know What You Want
Before you set foot on an auction floor, take time to research the cars you want, just as you would with any car purchase. Check the auction’s website in advance to scout potential buys, and then find out everything you can about your favorite model’s potential problem areas, pricing history and recent auction results. Use Carfax or another similar site to check the VIN for any questionable history, or to make sure the car is being accurately represented. That way, you’ll know what you’re looking at and can make the most informed bid possible.
9 Don’t Buy At Your First Auction
Take a seat in the gallery and watch the auctioneers and their closers. Pay attention to how they interact with prospective buyers. Get a feel for the pressure and the urgency they create to make a sale. Then, once you’ve seen how the auction’s system works, you’ll be more prepared to make bids you feel good about.
8 Set A Limit — And Stick To It
That’s why it’s important to check with your preferred bank or lending institution and (especially) your spouse before going to an auction as a buyer. Away from the pressure of the auction floor, set your limit … and stick to it.
7 Don’t Be Afraid To Get Dirty
So be ready to get your hands and knees dirty. Don’t be afraid to climb in, look under the hood and crawl under the car with a flashlight to look for potential issues like leaks, rust or structural problems. For extra credit, bring a magnet to check for plastic filler covering dents and dings. That way, you’ll know whether that car that looked so good on the auction website is actually the deal you want it to be.
6 Beware The “Reserve Price”
Frequently, the owner will set a price that represents the minimum amount of money they’ll take for their car. This is usually sought by owners who know their cars have a specific value … or less often, are trying to recoup money spent on restoration. The auctioneer may get the owner to waive the reserve if they sense a deal is imminent. If not, the car may still be offered for sale “off the block,” subject to negotiation with the owner. In still other cases, the car may be offered with “no reserve,” which means the car will be sold to the highest bidder, regardless of the amount. These represent the best potential for a bargain, but also could bring the most bidding competition.
5 Bring A Friend
One of the ways to protect against that is to bring a friend with you who can serve as a reality check while shopping and bidding. And, if you wind up with the winning bid, your friend is there to help you get your purchase home!
4 Yes, You Can Wave To Your Friend Across The Room
Don’t sweat it. Auctioneers don’t call on any bidders who haven’t already registered and demonstrated that, among other things, they’re able to fund a bid. So wave away!
3 The “Hammer” Price Is Not The Price You’ll Pay
But if you look it up online, you’ll see the price was actually $220,000. That covers the commission paid to the auction house, which is a percentage of the sale price. Sometimes, especially if you’re close to a car’s “reserve” price, the auctioneer will lower their commission in order to put more money in the buyer’s pocket and close a deal.
2 Be Ready To Tow It Home
That’s why you need to be ready with a plan to get it home (or to a mechanic’s shop) without driving it. Most auction companies can arrange to have your car delivered (for a fee, of course), but towing it yourself will almost certainly cost less ... and now that you own a classic car, you’ll need to start saving money to fix it!
1 Be Honest With Yourself
So if you’re genuinely handy and you have a place where you can do some repair work yourself, an auction may be a good option. But if any of that makes you nervous, you may want to stay on the sidelines.