Three Tips for Buying a Vehicle Through An Auction

Vehicle auctions are an excellent opportunity to get a vehicle for a fraction of the price it would cost through a dealership. While sometimes people get crazy bidding and auctions go higher than they should, if you go into the experience prepared, you can walk away with the car you want. Here are three tips to help you when buying a car through an auction.

1. Understand the rules of the auction. Do not bid on anything until you understand the rules and how the auto auction mall works. Most auctions dictate that items are sold "as is" so if you buy a lemon, there are no repercussions. You can not get your money back, return the car, or go to the seller for compensation. There are fees added in for the auction company and processing payments; make sure you know what the fees are going to be, so you can take that into account when setting your bidding price. You also need to be clear on when and how payment can be made and how you will get the vehicle. Depending on the type of auction and where it is, you may have to pick it up, or you may be able to pay to have it delivered. Keep in mind also that if you pay to have it delivered, you will need to factor that into your total expenses, so you are not overspending on the vehicle.

2. Know ahead of time how much you plan to spend. Having a set budget and sticking to it is the key to success at an auction. Too often, people get an adrenaline rush when bidding against another person and end up spending more than they intended to spend. How much you are looking to pay will depend on how much you can afford and whether or not you are buying the vehicle for yourself or reselling. If you are purchasing a personal vehicle, you are likely able to spend more because you do not need to factor in a profit. You do, however, need to factor in the potential cost of repairs that may need to be done. If you are buying the car as an investment, you will need to know what the potential resale value will be of the vehicle and estimate how much you will need to spend on repairs. The repair cost will be hard to determine, but you can make an estimate based on your vehicle research and information provided by the auction site.

3. Research the car you are bidding on before buying. This includes the bluebook value of the car, as well as any possible recalls. You want to look into anything that commonly goes wrong with that particular make and model, so you are prepared for any problems you may have. You may also want to take time to talk to a mechanic with experience working on that particular make and model to get some insight into how difficult they are to repair. Some vehicles are designed in such a way that ordinarily simple repairs are complicated and time-consuming. The tricky part about auctions is that you aren’t able to test drive the vehicle ahead of time or have your mechanic look at it. While this can be a significant risk, it also scares aware those that aren’t risk-takers, which is one of the reasons, you can get such great deals at the auctions.

If you are buying through an auction for the first time, it may seem overwhelming, but you will quickly get comfortable with the experience and start having fun. You may also find all sorts of vehicles you didn’t know you could want. Auto auction mall, for example, doesn’t just sell cars. They sell bikes, boats, recreational vehicles and more.

Freelance writer with BA in English from Binghamton.