Friday, November 30, 2012

How Does Auction Car Buying Work?

How Does Auction Car Buying Work?

Buying a car at an auction offers the opportunity of getting a really good deal, as long as you don't mind taking a bit of risk. Typically, cars sold at auction have no warranty or guarantee attached to them, meaning that if you make a mistake and buy a piece of junk, it's your piece of junk to deal with.

Auction Bidding

    Different car auctions have rules that may vary to some extent, but they all work more or less the same. Cars are either brought up to the podium or pointed out individually, and the auctioneer takes bids from the floor. Whoever is willing to pay the most for the vehicle buys the vehicle. Buyers are sometimes required to pay for the vehicle on the spot, while other auction houses require a down payment followed by full payment within a specified amount of time. Owners of the cars are allowed to impose minimum bids to protect themselves from the risk of their cars selling for too little.

Titles

    Ask about the title before you buy a car at auction. A car without a title can be bought for parts, but shouldn't be bought with the expectation of registering it and driving it. While it is possible to replace titles, the process is cumbersome and can be expensive; with the number of cars available on the market, it isn't worth the trouble. If you are dealing with an auction house that allows you to inspect the cars in the days leading up to the auction, go there during the inspection and ask about the titles of any vehicles in which you have an interest.

The Vehicle Identification Number

    When you look at a car you are thinking about buying, note the Vehicle Identification Number. This can be seen on a plate behind the windshield attached to the dashboard on the driver's side. You can use the VIN to learn more about the car by inquiring with the Department of Motor Vehicles or by utilizing the services of one of a number of websites that offer this service for a fee. You should be able to learn about how many people have owned the car, and possibly something about its service record.

Buyer Beware

    If you go to an auction with realistic expectations, you will be bound to have a better experience. While you can get good deals at an auction, don't expect to buy a two-year old vehicle for $200. Auctions are full of car dealers who know the value of cars. They will be bidding at below-retail prices because they are trying to make a profit, but they won't be letting valuable cars get away for nothing. If you buy a car for almost no money when you're surrounded by car dealers, there's probably a reason for that.

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