How to Drive Away With a Great Deal from Car Auctions
If you're looking for a great deal on a used car, but tired of visiting car lot after car lot, then car auctions may be the perfect option for you! Car auctions offer used cars at sometimes drastically lower prices. You just have to take the time to do your research.
There are two extremely important steps when purchasing vehicles from car auctions. The first is to get the vehicle identification number (VIN) and run a vehicle history report using a company such as CARFAX. If you can see the car before bidding on it in car auctions, also make sure that all the VIN numbers match. If they don't, then the car is probably either stolen or has been in a wreck and repaired with salvaged parts from another car.
The other step to follow when buying cars from car auctions is to purchase a used car extended warranty. Since the car will be used, you need to prepare for at least the possibility that things will go wrong with it. With online car auctions, you may not have the chance to inspect the car first so this is especially important.
Besides the vehicle history report, you need to do other research when purchasing cars through car auctions. Check the blue book value of the car so you know you are not bidding more than the value of the car. Check the prices at local car lots. This way you also know you are not bidding more at car auctions than you would pay at a lot.
Keep in mind, when purchasing cars from car auctions, the price you bid will be lower than what you actually pay for the vehicle. Usually at car auctions there are buyer's fees added on to the bid price. These are fees that are paid to the auction house and can range from only a few hundred dollars to 10% of the winning bid price. Figure this cost in when you are bidding. After all, the reason for using car auctions is to get a better deal than you could at the local used car lot.
Online car auctions pose some special issues to watch out for. Most times, you cannot see the car in person. You have to rely on information from the seller. The seller could give a false VIN number in online car auctions or incorrectly list the engine, model, or features. A vehicle history report can help with this problem. Also, the seller could have friends lie and improve his feedback rating or shill bid, which means falsely bidding to drive up the price. Also, using online car auctions could have additional fees for shipping or you may have to drive quite a distance to pick up the car.
There are different options for paying for cars at car auctions. Some car auctions will only accept a bank draft. Other auctions, such as ones on e-bay, offer an escrow service so the seller does not receive the payment until the car has been delivered. Sometimes, the buyer and seller can also agree on an inspection period where the car can be checked for any major problems and returned if any are found.
Car auctions can offer terrific deals to consumers who are wise enough to do their research before bidding. Remember to do all your homework and avoid getting caught up in the excitement of bidding. If you follow these tips, you just may drive off from car auctions with a great bargain!
