Buying cars from auctions can end up in a profit or a loss depending on your understand on cars and how the car auction process works. It is always good place to get a bargain because when you buying a car at an auction youíre not paying dealer prices; neither is you paying for a guarantee. What you see is what you get is the theory behind car auctions.
So you should have some knowledge and experience with motor vehicles before you attempt going to a car auction let alone buying one. On the end hand, what you do need is a good attention to detail, wiliness to learn and great observation skills. Once you can master the technique of buying good low cost cars youíll be able to sell them for profit.
There are two types of car auctions. The traditional local car auctions and the online car auctions.
Local Car Auctions
When entering a local car auction you will need to pre-register upon entering. There should be staff on hand to explain to you how to register and how to make your bids and general rules of the auction. Make sure you donít just bid on everything because if you win you bought it.
You should inspect the cars that youíre interested in. Make sure you do a through check to ensure itís a good buy not a dud. If you want to inspect the car closer you may have to ask for permission from the staff on hand. Itís wise to check up on the cars you want to bid on and make sure you set a bid limit otherwise you will be another victim of overbidding.
When placing your bids ensure that you signal the auctioneer clearly to avoid any miscommunication. If youíre in luck you might just walk away with a really good price on a car or cars. Each time you win a bid talk to the block clerk and tell them you want to settle your accounts. One of the staff on hand should be able to walk you through the payment process and the exchange of title.
Before you settle you have to also do a final check on the vehicle. Youíre also allowed to take the car for a test drive before settling on the accounts. This is a way for the auction to ensure you the buyer that you didnít buy a broken car and that itís functioning properly.
At last settling your accounts. Most auctions allow you to pay by credit card and check and of course CASH! You might be asked if you want to have a third party finance the car for you. Hereís a tip, if your going to do finance make sure you get your finances organised outside of the auction. Third party financing at auctions usually come with a higher interest rate.
Once you have settled your accounts you can either drive away or ship it to your destination. If you need to ship your newly bought car ask the car auction manager for a good rate on shipping. They will usually give you a better rate.
Online Car Auctions
Offline car auctions are a little different. You don't get to inspect the cars in person however you can request images of the car. If you're interested in online car auctions make sure if you do buy one inspect the car as soon as it arrives and if there is anything wrong with contact the online car auction site immediately.