Buying a Used Car at an Auction
One thing you need to know is what kind of auction you are attending. There are different kinds of auctions. Some auctions only sell to people with a dealer’s license, while some are open to the public. Some auctions sell cars that have been inspected and certified; others do not.
If you are buying a used car, don’t be in a hurry. Don’t just attend an auction and buy the first thing you see. The best thing to do is attend an auction for several weeks before you plan to buy. Watch the car dealers that are there; see how they do business. For example, find a particular car dealer who buys cars that look like something you would drive. If he is local, go to his dealership later in the week and see what he is asking for the cars (don’t let him know you were at the auction). This way, you can see what you would pay on a lot versus what he paid at auction. This also gives you an idea of the kind of price you should be willing to pay.
Most auctions that sell cars that have been inspected are only open to car dealers. If you want to attend one of these, you can make friends with a dealer and take him along with you. If this is too much, just go to an auction where the cars are not inspected. These are more likely to be open to the public. These are also more risky because there is no standard for the cars. You never know what you might be getting.
At most used car auctions, the cars are all sold as-is. There are no guarantees or warranties. For this reason, you must get there early enough to check the car out yourself. The absolute best thing to do is take along someone who knows about cars. Don’t try to be macho or a know-it-all if you are not; take along an expert. It might save you in the long run. It also wouldn’t hurt to have someone who understands auctioneers. Small car auctions are not like the big auction houses you see on television. Things go pretty fast, and if you don’t understand what is going on, you might not get what you want.
The most important thing to know about buying a car at an auction is that all bids are final. If your highest bid on a car is accepted by the seller, you must pay for the car. Most auctions ask for a deposit of at least five hundred dollars. If you decide that you don’t want the car, the auction will keep your deposit. The way auctions work is that the seller sells the car to the auction, which then transfers the car to you. If you decide not to pay, the auction still must pay the seller. You can be sued for the full amount of the vehicle. That is why it is so important to know what you are doing.
