- The conditions of sale are usually altered for auctions, stripping the buyer of some of their rights.
- When appraising the car physically, a guru might be able to spot issues that an untrained eye will miss.
- Bid to your maximum price, and if someone else bids higher than you, let them have the car.
Whether you are looking for a classic ride or a used car at a fair price, an auction gives you the opportunity for a great bargain. However, if you get one without prior research about various of its aspects, you might go home feeling cheated. Below are five tips that will be useful to when you go buying cars at auction:
1. Attend an Auction First
Before going to purchase a car at an auction, it is best to first research what auctions are all about. For one, if you have never been to an auction, attend several first to benchmark and understand the relationship between the buyer and the seller. The conditions of sale are usually altered for auctions, stripping the buyer of some of their rights. For example, a car dealership will allow you to test drive the car you would like to purchase before committing. In auctions, this is not usually the case.
2. Be Familiar with your Choice Car
What car do you want? Do not go into an auction without having a clear answer to this question, or you will end up buying a car that will give you neither value nor utility. Check car auction and used car websites to get familiar with the price ranges of the car. You could also talk to an acquaintance who is an expert on automobiles to tell you what to expect in terms of performance and factors like running costs.
3. Inspect the Car
Car auctions do not allow you to test drive the vehicles but you get an opportunity to inspect them before the bidding starts. Look at the car certifications and condition report first and if a car does not have either, it will cost you a lot to make it roadworthy. A certificate of roadworthiness will save you repair costs while a detailed service history means that you will be unlikely to meet big surprises.
Mechanical knowledge is necessary for the physical inspection of the car. If you don’t have the requisite skills, tag along with that car expert of yours. When appraising the car physically, a guru might be able to spot issues that an untrained eye will miss.
4. Know your Financial Options
When you consider market value before you bid, you get to know the amount of money you are likely to spend. Where are you going to get this money; from a savings account or loan from the bank?
If the latter is your option, you should first compare used car loans from different institutions to determine the lowest interest rates. Also, consider things like early repayments, the flexibility of the loan and personalised rates where you are a customer of the bank from which you are seeking the loan. With either option, be certain of the maximum amount of money you are willing to spend.
5. Be Smart
Experienced and hard-headed buyers at auctions, more often than not, get the best prices. To become one of these smart bidders, you need to learn from them. You can do this by attending car auctions in your area, and you can find these through a simple Google search. For example, when you search for car auctions in Brisbane, you can see the available locations and times.
Also, don’t bid to compete as that is a sure rabbit hole. Bid to your maximum price, and if someone else bids higher than you, let them have the car.
In a nutshell, this is what you do when you want to buy cars at an auction; go armed with knowledge of what you are buying, how much you are willing to spend on it and where you are getting the money. Appraise the car physically and ensure that it has all its certifications, and always be smart.