We’ve all seen auctions portrayed in media through the ridiculously fast-talking auctioneers, narrating huge bidding wars for rare antiques that end up being valued for more and more before someone bids a number no one else would be willing to pay. I’m also sure most of us have bid on an item or two on eBay and hoped no one else would notice the auction you’re bidding on.
Auctions are a great way for people to sell stuff at a higher price then retail whilst also drumming up some hype for the item on auction. Luckily for you, auctions are also a wonderful way to potentially buy stuff for a decent price or items that would not be normally for sale in retail.
Car auctions are no exception. You can potentially save thousands of dollars buying a car at auction, but the reverse also holds true and you might end up overpaying if you are not careful.
If you have a plan however, a car auction could allow you to purchase a vehicle for much less than at a dealership or from a private seller. Just follow this advice and you could potentially save money at a car auction.
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Finding an Auction
The first thing you need to do to save money at a car auction is, well, find a car auction. You might be under the presence that car auctions only serve dealers and you must be licensed. This is sometimes true as there are specific dealer auctions that require a dealer’s license to take part in, but not all auctions are like this.
If you are not a car dealer and don’t have a dealer’s license, then you should look for public auctions, which are open to everybody. Public auctions are usually free to attend or observe, but if you are interested in bidding, usually you will have to pay a fee beforehand.
You also need to determine if you’re interested in going to an in-person live auction or finding an auction online. Several differences between the 2 mediums of auctions create different mindsets and approaches.
If you need to physically be with the car before you buy it, an in-person auction is for you. At an in-person auction you’re able to inspect the car before deciding to bid on it and generally fewer people will participate because mostly only locals interested auctions will be at the event.
In-person auctions will also take much less time to complete then an online auction, meaning the bidding will be fast paced. It is important to keep a cool and level head while bidding to make sure you don’t overbid in the heat of the moment.
Online auctions allow you to search for the vehicle you want from the comfort of pretty much anywhere. Since the auction takes place through the internet, you can bid on and purchase cars from across the country meaning you can pick the auction just right for you.
However, there are downsides to online auctions. You won’t really be able to inspect the car as much as an auction in person. You will also have to wait some time before you can get your car, compared to being able to instantly get it in person. The higher number of potential bidders also means you might pay more due to someone else who is willing to start a bidding war for the vehicle.
Participating in an Auction
After finding an auction you would like to take part in, having a plan in place before bidding or going is a great way for you to get your desired outcome. Sticking to a plan ensures that you make as few bad decisions as possible when bidding.
Giving yourself a budget and a hard maximum number will ensure you don’t overbid on a vehicle. Not having a set number before bidding could mean you end up overbidding by accident. In an auction the difference between 2,800 and 2,900 might seem trivial, but if your budget is strictly 2,800 then stick to your guns because you will find another vehicle that will be in your budget.
A great way to keep yourself from getting too excited over a car is to have a friend or companion with you when bidding. This could be a serious financial choice and having a second opinion that is more neutral could help you think more clearly. If you are bidding online asking a friend for advice or approval is also very helpful.
Post-Auction
After bidding on a car you might be trying to replace a vehicle you once had or have. It’s alright if you made some compromises to get a good deal, buying cars from an auction is not a perfect process because it relies on luck for who you happen to be bidding up against.
If you need to get rid of a damaged vehicle or end up getting one through an auction there are different options you can take. You can sell your vehicle online if you don’t want to leave the home for it.
