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Auctions can be great places to purchase a car at a great price. However, cars bought at auction may not come without any warranties or guarantees, so you should always be aware of what you're getting into before you buy. If you're considering checking out what type of deals you can get at your local car auction, Mahalo's guide on how to buy a car at auction will teach you how.
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Introduction
- Buying a car at an auction can be a gamble, since you will usually not have the opportunity to test drive the car or have it checked by a qualified mechanic as you would if you were buying a car from a dealer or private seller. However, if you're willing to take the risk, you may be able to get yourself a new vehicle for substantially less than you would pay otherwise.
Step 1: Check it Out
- If you've never been to a car or auto auction before, it's a good idea to attend at least one before you plan to buy. Go to a car auction and do not place any bids, just simply watch and observe. Learn all you can about the auction process, what certain terms mean and everything involved in the auction.
Step 2: Buy a Guide
- Invest in a quality used car price guide and familiarize yourself with it. You may also want to do some preliminary research to see if there are any specific makes or models you are particularly interested in buying.
Step 3: Bring a Friend
- Ask a trusted friend or family member to attend the auction with you. If you know someone who is knowledgeable about cars, ask if they will come to the auction with you to help you check out the cars and advise you on potentially good or bad buys. Whether or not your companion is a car expert, they will also be able to help you keep track of the auction, since it will move quickly once things get going, and help ensure that you don't miss the opportunity to bid on a car you are interested in. Also ask your companion to help keep you from getting carried away in the bidding process and spending more than you had planned.
Step 4: Go Early
- Most auctions will open at least an hour or two before the bidding starts so that potential buyers can review the cars for sale before deciding to bid on them. Try to arrive as soon as the auction opens so that you have plenty of time to browse the cars for sale. When you come across a car that you are interested in:
- Inspect the car as thoroughly as you can for any apparent flaws or damage
- Make note of the lot number
- Consult your price guide and make note of the maximum price you are willing to pay for the car. Be aware that you will likely have to pay a "buyer's premium" of 5-15% on top of the price you pay for the car.
Step 5: During the Auction
- Once the auction starts, position yourself so that you can see all the action. Be aware of what lots are up for bidding, so that you will be prepared when a car you want to bid on comes up for auction. Listen carefully to what the auctioneer is saying to find out what increments the bidding is increasing by. If you choose to bid on a car, raise your hand confidently. Stick to your planned maximum bid and avoid the temptation to get involved in a bidding war with another auction attendee. If the bid has exceeded your planned maximum, shake your head and lower your hand to indicate that you are not interesting in bidding any higher.
Conclusion
- Buying a car at an auction can be an opportunity to get a great deal, but you may also wind up with a lemon. Be sure you are aware of all the risks involved in buying an auction car before you decide to do so. Learn as much as you can about the auction process and your potential buys before bidding, and do not get so caught up in the action that you spend more than you had planned.
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