With the challenging economic times, not everyone has the luxury of walking into a car dealership and driving away in the brand new, zero-mileage ride of their dreams. Still, with errands to run and jobs to go to, a car becomes an avoidable necessity. If you know where to look, you can easily acquire a used midsize SUV, pickup truck, or a car of your liking on a bargain.
Attending a car auction is a good option for anyone looking to acquire a used car cheaply. But it comes with a greater risk for the buyer than buying from a used car dealership. There is so much information you won't know about your potential buyers, plus you won't get to test drive the car before buying it. One of the main reasons cars are sold at a car auction is because they aren't fit enough to be retailed. Some have stayed too long at the dealer's lot, and auctioning is the alternative way of recouping some of the investment. Although you can technically show up at the auction with no experience, you need to conduct some all-important homework before committing your money. Here are some things you should know before attending a car auction.
10 You Are Not The Only Bargain Hunter At The Auction
You recently discovered you can buy a well-maintained government vehicle for a song at the auction. If you expect smooth sailing, you are setting yourself up for a rude awakening. Many people attend every government auction; therefore, you won't be the only bargain hunter at the venue.
A while ago, it was a guarantee to leave a government with a bargain, but the competition has grown immensely, and some vehicles fetch more than they do on retail. So be very careful not to get drawn into bidding wars and get burned.
9 Bring An Expert
At the auction, you will face competition from car experts like used car dealers, taxi companies, and exporters who are experienced in understanding the value of the vehicles. Vehicles are sold as seen and don't come with warranties, guarantees, or legal recourse. Also, sellers will go to great lengths to hide the car's flaws.
That is why you should bring someone who knows their way around cars to help you assess the condition of the vehicle you are interested in.
8 Get To Know The Players
Never participate in the first few auctions you attend. Instead, use them as a form of surveillance where you get to know the players. Put into practice all the spying skills you've gained from the many covert films you've watched over the years to observe other bidders' behavior. You will identify suspicious actions like ever-present bidders bidding on every lot.
These characters are known as shill bidders, and they are on a mission to deliberately pump up the prices, and identifying them can save you from falling into their conniving traps.
7 Always Check The VIN
Deceitful sellers can easily alter a car's mileage and also lie about the car's history. So, you should conduct a thorough background on the vehicle. First, get the VIN of the vehicle and then run a check with the National Insurance Crime bureau. You will discover the current state of the title, mileage, total loss history, and more. If some information doesn't match, that's a red flag to stay clear of the vehicle.
Also, comparing the VIN on the vehicle's history report with the number on the plaque in the engine bay, the dashboard on the driver's side, and the passenger side windshield reveals whether the car had experienced severe damage before. If the VINs don't match, then it is likely that significant parts were changed.
6 Lookout For Bank Repossessed Vehicles
You are likely to strike the best bargain at a public auction. But there is a catch. Most cars are mostly beaten up and in worse condition than those at a government auction. However, don't lose hope, because banks bring the best inventory to public auctions.
Bank repossessed vehicles are some hidden gems that the lenders just want to move for a reasonable price to recover losses. Most are well maintained, with the interior's state being the primary point of concern.
5 Superficial Scars Can Cover Up A Mechanically Sound Vehicle
Never let superficial dents and scars scare you away from a potential buy because the vehicle may have mechanically sound underpinnings. You will spend much less fixing a few dents on the body than bringing back to life a good-looking car with a troublesome powertrain. What's a simple paint job compared to an engine overhaul?
But this is only applicable at a government auction. At public auctions, scars on the body often than not signal a misused and severely beatdown car that even the seller didn't bother covering up.
4 Pull The Dipsticks
You can tell if a car has been well maintained by paying attention to the visible aspects like tire condition, state of the engine compartment, fluid leakages, state of the interior, and more. But a spotless engine bay might signify that the seller is hiding fluid loss or trying to redirect the buyer from noticing other issues cleverly. One surefire way to spot a poorly-maintained car is to pull the dipsticks.
The oil and transmission fluid dipsticks should be clear and clean for a well-maintained car. The dipstick reveals a lot about the health of the vehicle's internals. Unusual color may imply the head gasket is leaking and oil is mixing with water coolant, or the ATF is mixing with the engine oil.
3 Know The Car’s Value Before Bidding
You need to conduct enough research about the auction house long before the auction date. First, comb through their website and various listings, and compare prices on sites like Edmunds and Kelley Blue Book. You can also use value estimation tools like the Hagerty valuation tool. Thus, you will be able to assess the average market value of your target vehicle and help you estimate its worth.
This way, you won't attend the auction blindly, and you will be clear on your targets, which will also help you avoid impulse bidding.
2 Set A Limit And Stick With It
Auctions can be a thrilling and fun experience, and the adrenaline can easily get you caught up in the bidding wars. You forget that you attended in search of a bargain and end up spending too much on a car only to regret it later. The best solution is to set a realistic budget and stick with it. If the bidding surpasses your spending limit, you stop bidding, so you don't pay more than the car's worth.
Auctions are high-risk activities with no guarantee, and sometimes, you win by walking away from the deal.
1 Have Extra Funds For Shipping
Be ready to spend money if you win a bid at the auction. You will have to cover the deposit plus taxes, title and registration fees, and insurance. Organize the source of the funds in advance, whether a loan or self-finance, and while at it, make sure you have enough money left to ship your car home.
Having a shipping budget is important if you attend an out-of-state auction. You don't know the state of the car you are buying, so it is unwise to risk driving it cross-country only to break down in some remote part of the highway with no help close.