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Going To A Car Auction? Read These Pros And Cons First!

Thursday, January 4th, 2018
benefits of car auctions

Individuals and car dealerships are just two places for you to buy a car, but you can also consider buying one at an auction. There are some things you should know before attending a car auction. Here are some positives and negatives to purchasing your next vehicle at an auction.

Positive Benefits:

1. Car prices are usually better

Most people are attracted to this way of purchasing a vehicle because it is possible to get one for below market value. If you do your research, it is possible to save up to 30% of the car’s value. If you can fix mechanical problems or you do not mind some cosmetic issues, then buying a car at auction might be for you.

2. A variety of options available

There is a good chance that you might find a car that meets your needs at an auction. You have a wide variety of vehicles to choose from, so you have a good chance at finding something you want as well. You can find anything from used trucks and cars to commercial and farm and ranch vehicles.

3. Former government or fleet vehicles are available at car auctions

After a set number of years or miles, a fleet of vehicles owned by a company or the government may be turned over to auction to make room for new ones. This means that you could potentially get a newer car with low mileage. Usually, fleet vehicles have been well maintained, so this can be a safe option for buying a car.

4. Some auction vehicles may still be under warranty

You might assume that all cars sold at auction are old, but this is not the case. Sometimes, you can get a newer car that is still under warranty. If you do not want to be responsible for mechanical issues, this might be a safer way to get a car at auction.

5. You can view the auction house’s inventory online

Many auction houses post their inventory online with pictures and information about the cars they have for sale. This is a good way for you to get an idea of the car’s condition before you go to the sale. Be aware that not all the issues with a car may be listed on the website. You should carefully inspect anything that you are considering bidding on.

6. Sometimes you can get a good deal on a repossessed car

If car owners default on their payments, the financial institution might repossess their vehicle. A fast way for those institutions to make money and get rid of a car is to auction it off. This is a situation that gives you a better chance at buying a vehicle that has good mechanics.

Negatives to Watch For:

1. Vehicles available at auction are sold “as is”

You usually do not have a safety net when buying a vehicle at auction. You get the vehicle “as is” and are stuck with it even if problems develop. This is one reason why you should inspect any vehicle carefully before bidding. Bring a mechanically inclined friend along to check out the car if you do not know anything about mechanics. Also, keep in mind that most places that have cars for sale at auction do not allow you to test drive the vehicle.

2. The car you are interested in may be unregistered

Buying an unregistered vehicle can cause you problems. If it is not road worthy, you will have to arrange transportation of the vehicle and pay the cost of inspections, certificates, and registration.

3. Watch out for vehicles that are being sold illegally

Checking the VIN number on the vehicle’s papers and the car itself will help you avoid potential problems. If the VIN tag has been replaced in the car, it probably means the car has been in an accident or it may be for sale illegally.

4. Watch for quality versus cost

Paying for the car you have won at auction is just the first cost associated with purchasing a vehicle this way. First, the auction house will most likely charge a processing fee. You then have to pay transfer of registration fees, and the cost of inspection and registration if the vehicle is not registered. If you win a car at auction without a warranty, you will be stuck with the cost of fixing any mechanical problems that come up as well. However, this process of payment is the same as buying a used car from an individual, so it may be worth it for you.

Although buying a car at auction does have some cons, the positives outweigh the negatives. To learn more about how to bid at a car auction, contact the experts at High Plains Auctioneers today. You can call us at (806) 244-6776 or Contact Us by email for more information about buying or selling items at auction. Don’t forget to check out our Upcoming Auctions to see what we have available!