Car Auctions – An Overview
Car auctions are great ways to purchase cars at deep discount. Anything from older, junk fixer uppers to great newer cars even to expensive luxury models can be found. Many people purchase cars this way from car auctions either for themselves or to sell at a profit. But unless you keep some things in mind the auction can turn into a nightmare.
One possible problem is that the purchase might not be a good one. The car won at auction might turn out to be a lemon. Cars sold at such auctions are generally sold according to used car laws which tend to make it an as is sale. Even children have been taught about “as is” through a television cartoon showing a guy buying a used car”. He makes a cursory look at the car, but every question is met with “the car is as is” from the salesman. After the sale is final the buyer tries to drive the car, but the doors fall off and the engine explodes. He exclaims “I want the car as was!” Don’t be like that man.
Reputable car auctions give buyers ample opportunities to check out the cars before bidding or purchase. Avoid the auctions that don’t. Spend time at the facility before the auction begins. Look around and test drive the cars of interest. Always have on site car knowledge, meaning bring a mechanic who knows about cars if you don’t. If that isn’t possible, at least drive the car for an inspection during the test drive. Decent inspections take only a few minutes to check the important elements of the car including the motor, belts, brakes, and the like. Anyone with a decent eye can check the body, interior and other physical elements for wear and tear.
The very nature of auctions leads to another common issue. People assume that the car auction price will be a great deal, but often it ends up being more expensive than purchasing the item through a normal sales process. Like other types of auctions, auto auctions can be the same way. The bidding can easily escalate to well over the car’s value. Be very careful because fees will be added to the final bid price. Know the prices of similar models in similar conditions from Kelly Blue Book or other sales data. Phones with Internet access can bring this info to your fingertips while attending. Don’t pay more than the car is worth, even if it’s a coveted antique.
Remember, auctions can be great deals. But come armed with information and expertise. If a deal appears too good to be true, it is, even at car auctions.
