Purchasing a Car at an Auction

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Purchasing a car at an auction?

• Know the steps you should take.

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Introduction

• There is a lower risk of over-reaching when
  purchasing a car at an auction although human
  nature and the desire to win at all costs can
  play its part. There is an element of risk but
  careful preparation and research should mitigate
  the risk significantly. As with all types of
  auction you have a fair chance of securing a
  bargain. If you get it right, then purchasing a
  car at auction can save you 10 to 30 when
  compared to purchasing a pre-owned vehicle from a
  local dealership.
• Here are some ways to achieve tangible savings at
  a car auction.

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Know the Differences between Dealer Only
Wholesale Auctions, Public, Repossession or
Retail Auctions

• The dealer only auctions require a car dealers
  license. Car auctions are the only way for the
  dealerships to rotate excess inventory. Unlike
  the public auctions, the dealer only auctions
  offer close to new cars or new cars. They also
  offer recent trade-ins as well as off-lease
  vehicles.
• The public car auctions are open to all. This
  includes the savvy dealers and so prices may not
  be as low as suggested by the hype you see. You
  will see auctions advertised wherever there is
  marketing space - including online and offline
  media.

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Prepare well

• When preparing for a car auction knowledge is
  power. You must always ensure that you are well
  informed about the car you intend to purchase and
  its market value.
• Research the prices that models of a similar age
  are being marketed and sold in the market place.
  There are a number of websites that provide you
  with this information and with detailed sales
  trends by make and model.
• If you dont research well there is a risk that
  you will get carried away during the bidding
  process. It is vital to be prepared and to be
  objective before immersing yourself in the rapid
  fire environment of an auction.

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• Read
• Go through the auction catalogue in as much
  detail as you can. The model is fashionable.
  Thats OK. But what is the history of the vehicle
  and why is it being placed at auction?
• Attend
• Make sure you are physically present during the
  auction. No doubt, you will be able to bid over
  the phone but would you like to purchase a car
  that you havent seen?

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Observe Others

• Be patient and watch other people placing bids.
  Be on the lookout for suspicious behavior where
  the same bidders are being over active on every
  lot.
• They are probably looking to inflate prices.
  Visit a few auctions before you start bidding
  yourself. This will help you to better understand
  the process and players in the market.

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Avoid Getting Caught up in the Bidding

• Ensure you stay to your budget and dont get
  carried away. Withdraw from bidding when you have
  reached your budget limit. Always remember that
  you can easily get carried away during bidding,
  and lose money by overpaying for a car.
• Never pin all your hopes on just one vehicle and
  always be prepared to walk away.

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Conclusion

• Making a good buy at a car auction is dependent
  on preparation prior to the auction.
• You need to know the product, the average selling
  price and the bidding techniques that give
  results. Make sure you do your research and take
  advantage of information available online.
• We hope these tips provide you with the result
  you are looking for.

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Created By

• www.premier-plates.co.uk