My friend just recently bought a Mercedes Benz CLS500 for an absurdly low price (which I'll keep undisclosed). Of course, I prodded him as to how he got such a deal. He bought the car at an auction.
So naturally, your first question is about how these auctions work. The process of buying your vehicle at an auction definitely adds different elements as compared to making the rounds at your local dealerships. Firstly, there's the thrill of the unknown; you might have an idea of what you want but you're limited to what the auction is selling and sometimes the deal is too good to resist. Then, there's the element of competing against your fellow auction-goers. If you're not too neurotic, you can sometimes leave a bidding war with the upper-hand and a great deal.
There are different kinds of auctions that have different rules, regulations, and offers and before you think about bidding, read what I came across and keep your bidding mannerisms to yourself before the auctioneer misreads your cues.
1. Classic and luxury car auctions
This niche of car enthusiasm really draws the heavyhitters to the auctions. Because of the desirability, quality, and rareness of these cars, they usually sell for a higher market value whereas other auctions usually go below market value. Since the value of the car is most important, many potential bidders/buyers pay close attention to more than the aesthetics and mechanics. So, if you were thinking about bidding on a classic car, make sure to check the paperwork with maintenance records and original dealer invoices to ensure its value. Also keep in mind that although these classic and luxury car auctions are open to the public, serious bidders are required to pay a registration fee and in some cases, some kind of proof of finances.
2. Government auctions
Government auctions offer buyers a chance to buy cars with unique histories. Open to the public with free registration, the two types of vehicles available at these auctions are 1) property that has been seized by the government and 2) vehicles used by government services, including police cars. However, be especially tentative before considering bidding on one of these cars because their conditions are stereotypically not that good. The vehicles come as is and for the most part, the stress that the vehicles have gone through throughout their lifespan is indicative of its service.
3. Online auction
This is the most efficient way to bid on a car. Since it's the internet age, many consumers like the luxury of buying their cars from the comfort of their home. There are many online car classified sites but none stronger than the Motors subsidiary of eBay. Probably the biggest grumble to buying cars online is that there are so many available and you must peruse and weed through them all to seek for the best cars for the best deals. Bidding is free and the buyer doesn't accrue any costs or commissions. However, a huge problem with online car classifieds is that sellers tend to misrepresent their cars. To save yourself the pain, make sure you have a thorough run-through of the car before considering buying it.
4. Estate auction
You can think of estate auctions as fancy garage sales put on by auction companies as a way to settle assets in the case of a death or financial hardships. The true value of these auction is finding the gem...and for a great price.
So, the next time you decide you want to go to an auction to buy a car, make sure you stay an intelligent consumer. The exciting nature of these auctions usually causes you to use your gut to do your bidding which tends to lead to buyers with a bad taste in their mouths due to overpaying or not getting what they bargained for. So show up early, thoroughly inspect the vehicles that interest you, make sure you know the market value of the car, and also take into account the cost of potential repairs and maintenance and taxes that will have to be spent on the car. Other than that, have a happy time bidding and good luck!
-Rack of Lam
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