Why Buying Your Next Car At An Auction Is A Great Idea

If you’re looking to buy a used car, you’ve got several options available. You can go to a dealership and let them sort everything out for you, but then you’re essentially at the mercy of the dealership and you’ll probably end up paying a hefty premium for their service. What’s more, you’re limited by what they currently have in stock, so choosing the perfect car is not always easy or possible.

You can go down the route of buying from an individual, but unless you know what you’re doing, we don’t recommend this. You have to have at least some mechanical and car knowledge in order to not get scammed or ripped off. If you’re buying from an individual, you can’t take their word on anything they say, so you’ll have to go over the car yourself and make sure it doesn’t have any underlying issues. Buying from an individual is usually cheaper than buying from a dealer, but you take on a lot more risk by doing so.

The best way of finding a good deal is, in my opinion, by going to an auto auction. Auto auctions are exactly what you think they are: a place where you can place bids on cars until you win, or until you get outbid by someone else. Naturally, there are both pros and cons to purchasing from an auto auction, but in this article, I’ll highlight why you should at least give them a try.

1. More options than you can think of

If you’re buying from a dealer, you have very limited options. You can only purchase what the dealership currently has in their inventory, which is usually a few cars at worst and a hundred or so at best. When visiting an auction, you’ll see several hundred cars get auctioned off in the short span of a couple of hours.

Don’t worry though, modern car auctions aren’t what they used to be just ten or twenty years ago. Instead of going in blind, hoping you find a good car, most auctions nowadays have a website where you can browse through all the car lots and find a car that suits your needs. What’s more, a lot of car auction houses allow potential customers to come in early and take a look at the cars in the flesh, so they know exactly what they’re bidding on.

2. Save a ton of money

Auto auctions are arguably the best way of finding a good car at an extremely cheap price. The good thing about auctions is that a car is worth only as much as members of the audience are willing to pay for it. If you’re buying through an online auction, you can expect bidders from around the country, but if you’re attending a local auction, you’re only up against everyone else there and maybe a few bidders over the phone or online.

The great thing is that people often visit auctions with the goal of buying something very specific. If you plan carefully and have a couple of cars in mind before attending the auction, chances are you’re going to end up driving home in one. With most auctions, a few cars represent the standout highlights of the show, so you might want to avoid bidding on those.

3. Dealerships use auto auctions

Yes, that’s right, most car dealerships attend and buy cars from auctions at one point or another, especially when they need to stock up on inventory. By going to an auto auction yourself and buying directly from the source, you’re avoiding paying a premium to the dealer and you’re getting the same car for much, much less.

I’m not suggesting you avoid using car dealerships altogether, just merely pointing out the fact that if you know what you’re doing, car auctions can be the most viable option of buying a used car for you.

4. You can bring your own mechanic

Most, if not all, car auctions allow potential bidders to bring their own mechanic and perform an inspection on site (at least a visual inspection). If you’ve got a friend who’s a mechanic or knows his way around a car, ask him to tag along and help you out. The great thing is that bringing a mechanic or a friend at an auto auction is seen as something that’s completely normal. If you bring a mechanic to a car dealership, you’re going to raise more than a few eyebrows.

5. Bidding online

I know I said it’s better to attend auctions in person, but if you can’t, purchasing through an online auction is a great alternative. In a matter of minutes, you can go from placing a bid to buying a car you can be proud of. The best thing about online auctions is that you can buy cars from across the country without having to fly over and spend hundreds of dollars on fuel or plane tickets.

6. A good way of making a profit

Since you can find some great deals at auto auctions, you can also make a healthy amount of money if you know what you’re doing. A lot of people nowadays tend to buy cars which have one or two issues for way less than their market value, fix them up, and then subsequently sell them for a decent margin, all in a matter of days or weeks. I don’t recommend you go out and do this unless you’re a mechanic or are confident in your wrenching skills, but it is something to bear in mind if you think you’ve got what it takes.