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Like with any traditional car dealership, it is very possible to find a bargain at an auto auction. However, whether you walk away with a great deal on a new-to-you car really depends on how you play your cards at the auto auction. Finding a good bargain on a vehicle is really the product of well-done research and preparation on the buyer’s part.
Auto auctions are crucial to the used car business because it is where dealers bring the vehicles they don’t want to keep on their used car lots. Now, while it could be simply that the silver minivan has too many miles on it or that the blue sedan is too old to sell on the dealer’s lot, it could also be going to the auto auction due to other issues: ones that the dealers won’t be likely to tell you about. Because it’s a business, they need to sell their cars, and because you’re the consumer, you need to purchase one. It’s up to you whether you end up with an SUV that doesn’t run or a sports car that sat in a flood for three months before being transported somewhere for reconditioning.
Finding a bargain at an auto auction can depend on the vehicles, the dealers, and yourself. You have to know what you’re looking for in all three. First, figure out what you’re looking for in a vehicle and determine a price from one of the blue books so you can stay in that range and still get a good deal. Second, know the signs of a vehicle that has water damage, a bent frame, chipped or scratched paint, leaks of any kind, or other issues that forewarn against buying that car or truck. Make sure to take advantage of the preview period before an auction to check out the cars available so you have a better idea of the condition of that new SUV you’ve been looking for. It can be tricky to evaluate the condition of a vehicle unless you really know what you’re doing. Also, if possible, meet the people involved in the auto auction to know whether you’re dealing with honest businessmen. If your instinct tells you that something is wrong, listen to it and try another auction.
You can buy a vehicle at an auto auction for generally cheaper than you would find anywhere else, but this incorporates the lack of guarantees you would get with a car purchased through a regular dealership. If you train yourself to become an auto auction pro, it could be a very good way to buy cars to turn around for a profit after doing a bit of work to them. Make sure you set your buying price at the time of the auction to avoid overbidding on any vehicles, and settle your account with the block clerk or auction staff, and make sure to get the car’s title.
Because bidding can become competitive, cars at auto auctions usually end up going for fair market value, the same you’d find at a dealership. Many sales are not accepted because the bidding ran too low and the appraisal price was too high. The cars that usually go for bargain prices are older model vehicles and damaged vehicles sold for scrap in ‘as is’ condition.