Cars, Vans, Trucks, Quad bikes: Buying, Hiring Or Leasing A Car - "Used Car Auctions - Good or Bad?"Wednesday, 8 September, 2010 |
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Although there are some very good deals to be had at car auctions, there are also some things that you must know and do if you are attending an auction for the first time, because when you are unfamiliar how an auction operates you can make a few mistakes that can be very costly, but armed with some foreknowledge and providing you follow it - you should be okay.
Most people's experience of buying a car normally goes like this:- See the car they like in the local paper, go round the seller's house, view the car and then negotiate the price by starting at asking price and then trying to bring the seller down to the price you want to pay.
With this way of buying, you can take your time, take a test drive, and think about how much you want to pay and if the deal does not suit you, you can go away and think about it.
Buying a car from auction is a totally different experience.
The scenario at the car auction is far different, and this is what puts a lot of people off from buying a car this way, but if you are armed with a checklist and knowledge of what to do, you can certainly swing things in your favour.
I'll assume that this is your first auction that you will be attending. If you are an experienced auction visitor, then it won't do any harm just to go over points that you already know.
The first place to look for at the auction is the office where the entries for the vehicles are accepted. Here there should be displayed the conditions of sale of the cars that are entered into the auction.
Amongst the general auction rules there will be information about how the cars are offered for sale. These are as follows:
This means exactly what it says, what you see is what you get. Any vehicle that is offered for sale sold 'as seen' cannot be rejected under any circumstances. Any complaint about a problem that the car may have will not be entertained at all.
This may seem a bit harsh from the buyer's point of view, but don't let this put you off buying a car that is sold 'as seen'.
This can vary from auction to auction, so it's important that you check with the auction staff to verify what their conditions are but basically sold 'with trial' means:
That you get one hour after the end of the sale to return the car if you find any 'MAJOR MECHANICAL FAULTS', i.e. engine, gearbox, axles, steering rack etc.
Some auctions conditions differ from one auction to another so that is why it's imperative that you check with the auction staff before bidding on any vehicle.
This is a fee that you will pay on top of the purchase price of any car that you may buy. Probably better known as a 'buyers premium'.
Fees vary a great deal from auction to auction. Check with the auction staff as to what these fees are if they are not displayed in the office area or around the auction.
These fees should also include an 'HPI' check on the car you are buying. This will give you full legal title to the car. The 'HPI' check covers items such as:
When I first started to visit car auctions I went along to them for about three months before I bought my first car. The reason for this was because I wanted to go into car dealing as a business, and I decided to carry some research before I actually committed myself.
I would not under any circumstances take any money with me to buy a car with, just enough to get there and back, and for a cup of tea and a sandwich (and sometimes that can come to a few quid depending on which auction you go to).
I did this because when I saw how cheap some of the cars went for, I immediately wanted to start buying anything and everything, but this would have been a mistake.
So I sat at every auction I attended with my notepad and pen taking down the details of nearly every car that came through the auction and I was surprised at the prices the cars were making.
From there I would go home and compare the prices in car magazines and the local paper and I could see immediately how much profit people were making by selling cars.
I decided to take the plunge, and armed with all my knowledge and statistics of the previous three months' research, one evening at a car auction in Essex, I purchased a Rover SDI 2600, X registration, for the sum of £500, which at the time was quite a nice car and not too difficult to get rid of.
I picked the car up a week later because I paid by cheque and had to wait a week for the cheque to clear. I got a few miles down the road, and I noticed the engine started to heat up very quickly, which is not a good sign. To cut a long story short, I have the car transported home and have to sell the car to a dealer out of the local paper who pays me £200 for it.
First deal - Loss of £300!! WELCOME TO THE WORLD OF CAR DEALING!!
As I mentioned earlier, you can take your time when buying a car the normal way, but these methods go right out the window when buying a car by auction because it's a totally different buying experience.
When you have the opportunity to buy cars at trade prices, your imagination starts running wild as to how cheap this car is, or much money you can earn from this even, if you had no intention of selling cars for a profit. This happens with everyone; it is basic human nature.
So when you start seeing the other bargains to be had at the auction, the car that you had in mind can very quickly change, along with your priorities. Coupled with the fact that there is so much choice and not just one car to look at, unlike when you go to look at a car that was advertised in the paper, you only turn up to view that particular one.
At car auctions there are absolutely hundreds to choose from. So if your 'ideal' car is not there, there is always another car that maybe you didn't really want which can catch your eye, and there is nothing like a cheap price on a car to focus the attention of the mind.
Part 2: Checklist for buying at used car auctions.
If you would like more information about car auctions you can sign up at my website for my weekly newsletter where you'll have FREE audio and video lessons revealing all aspects of car auctions from a dealers viewpoint and a FREE complimentary copy of my ebook, 'Cheap Car Prices'.
Paul Fryatt is a car dealer with an extensive knowledge of car auctions. You can find FREE audio and video lessons at his website covering aspects of car auctions and how you can use them to save money on the next car you buy.
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Now, buyers can go online and do all this and more… that is if
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shopping
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We're not the only ones who are doing this. Our next door neighbor just bought his wife a brand new convertible. Like us, he had to fly about 1,000 miles to pick up the car, then drive it home. He'd do it again in a second. He also
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This is the second part of a 2-article series. Click here to read the first part, Used car auctions - good or bad?
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Instead, they mark the price up a little so that they make a
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Online technology allows easy shopping for car loans. Through connected databases, call centers, and streamlined processes, you can connect to lenders to find low rates regardless of where you live.
Sub prime lenders, who specialize in financing people with poor
credit, now have to compete for your business. Even with a
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