Car Auction Secrets

Public auto auctions provide good opportunities for finding a great deal on a used car. However, you need to be prepared before going into an auction or you could end up getting a bad deal instead. But if you follow my words of experience, you can minimize your chances of making a costly mistake at one of these auctions.

First, you need to know a few facts concerning public car auctions. These are open auctions of vehicles that have been repossessed or seized by the government or police. The used cars are sold “as is” without any warranties or guarantees. You cannot return a car after winning it in auction, and it is very difficult to get a reimbursement. Besides the price you will pay for a winning bid, you will have to add a buyer’s premium amounting to 5% to 10% of your bid on top of it. Furthermore, you may have to shell out a registration fee as well.

It is better to have some knowledge of cars if you are going to buy one at a public auction. If you aren’t that knowledgeable, bring someone with you who is. Alternatively, you can get a car dealer to buy a used auto for you at a public auction, or at a closed auction that only dealers can attend. You will have to pay the dealer, however, on top of all your other expenses.

Every public auto auction has a preliminary inspection period, often a day or two before the auction--in some cases, only hours before. You need to attend this inspection period. It is your best chance to view the vehicles. You can examine a car closely and possibly be able to get behind the wheel and start it. You definitely need to take down the Vehicle Identification Number of the auto you plan on bidding on.

You will use the Vehicle Identification Number to track down the car’s vehicle history report on the Carfax website. You will pay a fee for the service, but you will be able to get information on whether the car has a clean title, if it has been in any accidents, how many people have owned it, and some details of its service history. This kind of information is very useful in figuring your bid. Also, not all auction lots run comprehensive verification checks on cars, so you want to make sure you are bidding on a car with a clean title.

You should also get a copy of the Kelley Blue Book or some other commercial auto guide. This can help you determine the market values for most car models and also aid you in setting your bid.

On the day of the auction, you should arrive early so that you won’t risk missing registration. If you are not registered for the auction, you will not be allowed to bid on anything. Make your bids with confidence and decisiveness-- at times you will have to make very fast decisions. But stay calm and avoid overbidding. Be sure you keep your bids at the fair price or lower, if possible.