Buying Your Vehicle At An Auction

21st April 2009

When most people consider buying a new or used car, the first place they visit is a dealership. Walking through the dealer’s lot, they hope to stumble upon the perfect vehicle for the right price. For motorists who are willing to look under the surface, automotive bargains can be found at auctions. You’ll need to bid against other hopeful buyers, but with a little tenacity, you can drive home a great car at a great price.

Below, I’ll explain how to buy a vehicle at an auction. I’ll also point out a few things you should consider during the process to ensure your experience is a smooth one. Even though these events are extremely popular, many people don’t know what to expect.

Buying From The Government

The advantages of looking for vehicles at a government auction is that it’s open to the public and you can register them for free. The drawback is that some models may be in poor condition, depending upon their history.

The automobiles that are put up for bidding come from a variety of sources. Some are seized by police in drug raids. Others are taken from citizens who have been caught evading taxes. Still others are driven by government employees, but have come off their leases. Unfortunately, it’s not always obvious if a mechanical or structural problem exists. Proceed with caution.

Purchasing From An Estate

When a person has passed away, their collection of assets are often sold to the public through an estate auction. This may also be the case if the owner is still alive and needs to raise funds, or is simply moving. In that sense, this type of event is similar to a yard sale.

Unless the estate owner is phenomenally wealthy, there may only be a few available vehicles that are put up for bidding. However, because these events are rarely advertised, your competition is usually much lower. It’s not uncommon for only two or three people to bid. With some luck, you can uncover surprising bargains.

Buying Online

Buying cars, trucks, and SUVs through online auctions has become explosively popular. While there are many channels through which to participate, the trend is largely led by eBay Motors. Prospective buyers from around the globe can submit their bids from home. What’s more, as long as you’re willing to conduct a little due diligence about the vehicle for which you’re bidding, there’s little chance of being stuck with a lemon.

Car dealerships will continue to attract the bulk of the buying public. However, car auctions – whether government, estate, or online – offer money-saving opportunities for the savvy buyer. Getting involved may seem intimidating, but the unexplored territory can often yield automotive bargains.