The idea of buying a used vehicle at a car auction is daunting, no doubt. Just about anything could be wrong with it since you\u2019ve got virtually no idea where these cars came from and what they\u2019ve been through! However, the thought of getting a car for a super low price at least earns it a shot. If you\u2019re interested in buying a vehicle at a car auction, you have a few choices between auction types.\u00a0<\/p>\r\n\r\n\r\n\r\n
Government auction or public auction? In-person or online? Once you\u2019ve weighed those options, there are some do\u2019s and don\u2019ts of auction car buying, some best practices, if you will. It\u2019s probably best to first understand where cars that land at an auction come from and how to figure out if it\u2019s a smart idea to buy.<\/p>\r\n\r\n\r\n\r\n
What\u2019s an auto auction?<\/span><\/strong> Copart, ACV Auctions, Auto Bidmaster, IAII, and Auto Auction Mall are some of the most popular car auctions<\/p>\r\n\r\n\r\n\r\n Attending an online auction takes a certain level of trust. If you\u2019re looking for something specific or you\u2019re a picky person, this may not be the option for you. Actually, that remains true for auctions in general. Most cars are sold as-is and the rules about inspecting the vehicles before you buy vary between auctions. In some instances, you can go as far as bringing a mechanic with you to check out the vehicle for major issues. In other cases, some auctions even withhold the VIN or Vehicle Identification Number, from consumers (this usually means there\u2019s something to hide, no bueno!)\u00a0<\/p>\r\n\r\n\r\n\r\n How do vehicles even end up at the auction yard<\/span><\/strong> Although that\u2019s one reason, some cars that end up at the auction yard are just rental companies or financial service firms disposing of unwanted, off-lease returns, aging fleets, or simple trade-in cars. In fact, many car rental companies ended up selling vehicle fleets at the start of the pandemic like Hertz, after filing for Chapter 11 bankruptcy. Lastly, a more well-known reason, vehicles that might\u2019ve been seized or repossessed by the banks, IRS, or other government agencies will end up for sale at an auction as well.\u00a0<\/p>\r\n\r\n\r\n\r\n Over nine million cars are sold at auction each year in the U.S.<\/p>\r\n\r\n\r\n\r\n Choose your auction wisely<\/span><\/strong> If you\u2019re going with the in-person option, do some research first. Lookup a few auctions and read the rules. Every auction has its own set of rules, as well as a niche market. For instance,\u00a0Barrett-Jackson in West Palm Beach, FL is having a collector\u2019s car auction next April at the South Florida Fairgrounds. You might have to register for the auction online. Maybe you need alternate forms of ID. Not every auction will accept a credit card. You\u2019d hate to go through the hassle of bidding on a car and the joy of winning only to not have the right form of payment.\u00a0<\/p>\r\n\r\n\r\n\r\n According to JD Power, wholesale prices for used cars sold at auctions are up 26% since the start of this year<\/p>\r\n\r\n\r\n\r\n Get an idea of what you want vs what they have<\/span><\/strong> Use the VINs to look up vehicle history reports on websites like Carfax or Autocheck. These reports will give you information about accidents and previous owners of the vehicle. Also, you can use KBB.com to see what the current market value is for the car, to ensure you know when to stop bidding. The idea is to get a good car for a great price. You want to bid accordingly. If it\u2019s possible, depending on the car auction you\u2019re dealing with, ..a good idea is to visit just to observe first. Especially if you\u2019ve never been to one before, this will give you a good sense of how it all works.<\/p>\r\n\r\n\r\n\r\n Keep an open mind, whether you\u2019re buying in-person or online<\/span><\/strong> Try keeping a broader idea of what you\u2019re looking for. Instead of declaring you only want a red pickup truck, come up with some general guidelines like a truck or SUV with less than 100,000 miles, and less than 10 years old. This way, you might find yourself with a few options to choose from. It\u2019ll also give you a backup plan if you don\u2019t get the one you really want. Be practical in that you aren\u2019t at a dealership paying full price for a car. You may have to make a few sacrifices!\u00a0<\/p>\r\n\r\n\r\n\r\n With so much less traveling in 2020 due to the pandemic,\u00a0 a lot of American car auctions like Auto Auctions & Copart saw rapid growth as rental companies had no choice but to downsize their fleets of vehicles<\/p>\r\n\r\n\r\n\r\n Bring a friend and a budget<\/span><\/strong> It\u2019s also good to have a second set of eyes to catch things you might miss. Say you get excited because the exact red pickup truck you wanted is on the floor. Your buddy may see the broken side-view mirrors, cracked bumper, and gaping hole where the radio used to be, that you missed in all the excitement. Bringing someone along will help you keep your eyes on the prize. That prize is a smart, sound purchase of a vehicle that will transport precious cargo. You! Many auto auctions may use a light system to show the condition of the vehicle; green means the car has no issues and red means it\u2019s sold in as-is condition<\/p>\r\n\r\n\r\n\r\n Go online for your auction wheels<\/span><\/strong> Sites like eBay Motors and Copart are veterans in the online auction industry. They have a huge inventory from all over the country. You just need to register to gain access to these public auctions on the web. IAAI.com has a cool feature called \u201cRun & Drive\u201d Here you can watch a 10-15 second video of the vehicle being started up. You can see and hear the engine running. The multi-faceted site also allows you to hire an inspection specialist to check the car out or even set up a time to visit the car in person before the auction.\u00a0<\/p>\r\n\r\n\r\n\r\n\r\n\r\n
Car auctions are a way of selling vehicles based on a bidding system. In some cases, they\u2019re exclusive to car dealers, for example, \u201cclosed auctions,\u201d but many auctions are open to the public and anyone can come. States like Pennsylvania and New Hampshire hold plenty of public auctions. There\u2019s also the growingly popular online option! Think about it\u2026you live in a world where people will buy a house, only having viewed the photos and information online. Why wouldn\u2019t this be an option in the car auction arena?<\/p>\r\n\r\n\r\n\r\n
You\u2019re probably wondering, how do vehicles end up at a car auction? Great question! Contrary to popular belief, not all the vehicles available at auction landed there because they\u2019re totaled out and have nowhere to go.\u00a0<\/p>\r\n\r\n\r\n\r\n
So now you know the facts, but how do you get to the finish line of auction car buying? If you don\u2019t have a dealer license, you can count out the closed auctions. You can\u2019t get into that club! Not to worry, there are plenty of public auction options for you.\u00a0<\/p>\r\n\r\n\r\n\r\n
You don\u2019t always have the opportunity to research the vehicles ahead of time. But if you have access to images, VIN #, details about the model, and so on, make sure you take advantage. You may even find that some will let you take a few cars out for a spin! Get to the auction nice and early. This is prime time to start up some engines and see any cosmetic damage that wasn\u2019t visible in pictures or included on reports.\u00a0<\/p>\r\n\r\n\r\n\r\n
With car buying at an auction, you need to be a bit flexible. An obvious pitfall to auction car buying is you get what you get! Or at least you get what they have. If you know you want a red car, or you\u2019ll only buy a pickup truck, buying at an auction may not be for you. Know what you\u2019re looking for in general, but also know you could be outbid for it or it may not be available at that auction, on that day.\u00a0<\/p>\r\n\r\n\r\n\r\n
Even though you\u2019re banking on a deep discount by choosing to purchase your new (to you) wheels at an auction, it\u2019s still a big purchase! Spending big money can come with anxieties and emotions that could allow you to get carried away. Figure out how much you have to spend on the car and bring a friend to help you stick to that budget.\u00a0<\/p>\r\n\r\n\r\n\r\n\r\n\r\n
SEE ALSO: CAR BUYING-DEALERSHIP OR PRIVATE SELL<\/a><\/strong><\/p>\r\n\r\n\r\n\r\n
Attending online auctions, especially in today\u2019s climate can be super convenient. The majority of sites are legitimate just to simplify and edit\u2026but do your research and look for reputable online options. There\u2019s always the possibility for fake auctions and you could never see your money again! Find out how long the company has been in the business of online auctions. Experience matters! What do the reviews look like? Is there one general complaint that everyone is talking about? What does the Better Business Bureau say? Check out social media sites and search for company-named hashtags to see what kind of conversations revolve around certain auctions.<\/p>\r\n\r\n\r\n\r\n