Buying a car anytime soon? Well before you consider going through the hasle of those big-name car lots, I've found a potentially better way to purchase your next car or truck. Auto Auctions! That's right! At auto auctions you can skip the haggling, the high finance cost, the unresonable down payments, even the all day process of waiting for bank approvals. Not to mention that 80% of cars sold at auctions sell for significantly cheaper! But how do they work? Well here I'm going to walk you through the enitre process.
First things first, most auto auctions require full payment at the time of purchase. Public auto auctions are held every where and are very convienent for most cases. Who Holds Public Auctions? The General Services Administration, the U.S. Customs Service, the IRS, the U.S. Postal Service, your local police department (state, county and city), and local auto auctions. For the best ways to find out what auctions are being held in your area, check your local newspaper and television ads. Smart buyers would always find out when they are holding the pre-sale inspection period and take advantage of it. You can get online list of the cars and trucks for sale before the auction, to get a jump on your competition. Here are some tips to put you ahead of the curve.
1. Inquire about the terms of the sale. Do they require a deposit before permitting you to bid? How will they accept payment? Cashier checks? Credit card? Cash?
2. Write down the vehicle Identification Number (VIN), make, model, number of cylinders, mileage optional equipment and note the condition of both the exterior and interior.
3. Call a few used car dealers or wholesalers and "pretend" that you have a used car to sell. Describe the car you've inspected giving them all the details. Ask the dealer to give you a "ballpark" price over the phone. This way you'll have an idea on how much you want to spend.
4. Use the VIN Number to run a CarFax report prior to the auction. CarFax reports include any history of accident damage, odometer fraud, multiple owners, title problems and much more.
Tips on Bidding
1. Always go to the auction with a not-to-exceed bid amount in mind. And stick to it. Don't let yourself get caught up in the frenzy of bids. Your top bid number should never be higher than the wholesale value of the car.
2. Often an auctioneer will start the bidding at a high number and then drop it if, as is usually the case, no one responds to the opening asking price. It's usually best not to be the first one to bid. Get a sense of the audience's interest in the car before you jump in.
3. It would be a good idea to attend an auction or two before you start seriously bidding. The more you can learn, the better your chances of reducing your risks.
Using these tips will help you greatly in your car buying experience. I've purchased three car in the last two years at auto auctions and I'm still happy with the outcome. Below is a link to a professional on the topic, and also an online auction which I am currently a member. They offer more tips, and help, and also host many auctions with a great selection of automobiles. Check it out.
http://jontri.bezoogle.com/pp/auto-bargains/
