If you're looking to buy a used car, auction might be the best place to find one. The process of buying used cars at auction, however, can be a little daunting if you're not familiar with it. Here's a guide on how to buy used cars at auction:
1. Familiarize yourself with the process
Auctioning off used cars is not as common as selling new ones, so it's important that you familiarize yourself with the process before jumping in. Each auction house has their own set of rules and procedures, so make sure to read up on them before attending an auction.
2. Attend an auction preview
Most auction houses will allow potential buyers to attend a preview day before the auction. This is a great opportunity to view used cars that will be up for auction and ask any questions you may have about the process.
3. Set a budget
Before going to an auction, it's important that you set a budget you're willing to use when buying used cars at auction. The amount of money you're willing to spend should take into account used car prices in your area as well as any other costs associated with the purchase (title transfer fees, taxes). Try writing down your ideal used car specifications so it becomes easier to narrow down choices in future used car auctions.
4. Bring a friend
Negotiating a used car price can become a little uncomfortable if you don't know what you're doing, especially if there are other people around. It's a good idea to bring a friend or family member who can look out for any used cars that would match your used car specifications.
5. Understand the auction lingo
To make sure you understand everything happening during an auction, it's important to familiarize yourself with the used car auction terms used by the auctioneer and used car buyers in attendance. It would also be helpful if you have some knowledge of how auctions work before walking into used car auctions.
6. Avoid buying "as-is" cars
Most used car auctions will include "as-is" cars that won't have titles registered until after they're bought at auction, which means you'll have no legal recourse if issues arise. You should also try to steer clear of used cars with salvage titles as they may be worth significantly less than used cars without them.
7. Inspect used cars thoroughly
Even though auction previews are available, most used car buyers don't take the time to thoroughly inspect used cars before committing to a price or bidding on them against other used car buyers. It's important that you inspect every used car you're interested in buying during an auction preview and look for any signs of damage or wear & tear that may have been repaired or hidden from plain sight.
8. Get a vehicle history report
Before spending money on used cars at auction, it's a good idea to get a vehicle history report so you can find out if the used car has been used as a rental or salvage vehicle. This will also tell you if the used car has outstanding liens or any other used car issues that would render it useless.
9. Call for an inspection
Or send a trusted mechanic to inspect used cars on your behalf before committing to buy them at auction. They'll help you determine whether used cars are worth buying or not, especially useful if you're new to used car auctions and don't know how to estimate used car prices.
10. Buyer beware
Used cars come with risks of their own, so make sure you do everything possible to protect yourself before buying them at auction. Make sure all agreements are in writing and read through the entire contract thoroughly before signing anything!
Check out the benefits of used cars here.
Buying used cars at auction can be a great way to get a good deal on a used car, but it's important to remember that there are risks involved in any used car purchase. By following these 10 tips, you'll be able to buy used cars at auction with confidence and avoid any nasty surprises down the road. Happy bidding!