4 Things To Look Out For When Buying A Car At An Auction
Buying a car is a serious investment. Statistically speaking, your car is the second most expensive thing you’re ever going to buy, so choosing the right vehicle is crucial. Although you can buy directly from a dealership or a third-party individual seller, more and more people these days are opting for something a little bit different: car auctions.
Most of you are probably aware of what car auctions are, but for those who aren’t, here’s a quick summary: a car auction is a place where people bid on cars, and at the end of the bidding war the highest bid wins, and the highest bidder drives off home in the car. That’s the general idea anyway, but in reality, there are a lot of hidden tips and tricks you should be aware of if you’re looking to buy a car from a car auction.
With that in mind, we’ve compiled this article with some important tips everyone should know before heading off to an auction. Do bear in mind that this isn’t a strict guideline for how you should act or behave at car auctions. It’s merely something to help you get started and familiar with the concept of bidding on a car, as well as how to choose a good, healthy vehicle, and not a lemon.
1. Have a plan
Car auctions are usually hectic and extremely disorganized in their own, unique way. If it’s your first time at a car auction, you’ll probably get lost really easily in a sea of bidders looking to snatch up something exciting, and an auctioneer who speaks so quick you’ll think he’s speaking gibberish. To avoid any unnecessary confusion and misunderstandings, we strongly suggest you weigh your options before leaving home in the first place.
Do you have a specific car in mind? Don’t stress it if you don’t, because most people at a car auction have no idea what they’ll end up driving home at the end of the day. That being said, it’s always a good idea to have a shortlist of vehicles you’re interested in. If you’re looking at family four-door sedans, ignore two-door sportscars or large SUVs. I know this sounds silly right now, but when you’re at an auction and you see some amazing cars come up for not a whole lot of money, it’s easy to get overwhelmed with emotions and start what’s known as a ‘bidding frenzy’.
If you’re visiting a particularly large auction house which has its inventory displayed on their website, take a quick look to at least make sure they have a couple of cars you’re interested in. That way, you won’t be wasting your time driving down there, only to leave empty-handed.
2. Get to the auction early
Auctions are often tightly scheduled, and you won’t have a chance to look at the cars when the bidding starts. Therefore, you must arrive early at the auction and take a look at the cars in the flesh before you decide to bid on any of them. You can’t test drive cars at an auction, so you’ll have to rely on a simple visual inspection. This is a great time to formulate a backup plan and mark out a fallback car, a plan B if you will, in case the car you’re most interested in sells for a higher price than what you’re willing to pay.
3. Understand the concept of “As Is”
This one is super simple, but most people seem to get frustrated when they end up buying a car and it isn’t what they were expecting it to be. Simply put, “As Is” means you don’t get a guarantee or any warranty that the car is running as it should or that everything on it is completely functional. If you’re not prepared for all unforeseen circumstances, including the fact that maybe the car won’t turn over and it’ll need a new engine, then auctions are probably not for you.
Don’t get discouraged though, because this is just a friendly warning. Most auction houses are honest about the condition of their cars, and most previous owners are usually nice people who aren’t out to scam anybody. Obviously, you’re buying a car at an auction, so not every car on the lot is perfect or even drivable. Use common sense in selecting something that looks at least half-decent, because a lot of old cars come to die at car auctions. If you have a knowledgeable friend, ask him to tag along and help you choose a car which won’t end up being a bottomless money pit.
4. Know your limits and your budget
Auction craze is a real thing, especially with novice, first-time bidders. Don’t get too heated and enter a bidding war, only to find yourself paying way too much money you don’t have, for something you didn’t want in the first place. Understand that if you’re in a heated bidding war with someone else, and no one backs off, you’re both losers, because you’re driving the car’s price up for no reason.
Be reasonable and know what you’re willing to pay for any given vehicle. Set a strict budget limit and respect it no matter what. Overbidding is one of the worst things you can do at an auction, especially as a novice.
Conclusion
Car auctions aren’t for everybody, because it takes skill, experience, knowledge, and expertise, to drive away home in the bargain of the century rather than an overpriced piece of junk. That being said, car auctions are extremely fun, which is why they’re so risky and dangerous. You can get carried away too easily without even realizing it. Stick to the points made in this article though, and you just might end up with something brilliant.