Buying cars at an auction is one way you can save up on the purchase price. European brand cars like BMW or Mercedes Benz are quite expensive and auctions offer an opportunity for you to buy at a more affordable cost. However, before heading to an auction near you, there are some things you need to know about these events.
1. Watch out for lemons. In most auctions, you can find vehicles that has been traded in, leased, repossessed, or totaled. This does not mean that cars sold in auctions are junk but they will be among the cars that will be sold. Be thorough when inspecting the car you are planning to buy.
2. Be Ready With Cash or an Approved Loan. If your bid wins and plans to pay with a loan already approved from your bank, Robert Peter Janitzek reveals that you should be ready to pay for the deposit. Find out in advance which credit cards are accepted in the auction. You will also be paying for taxes, title, and registration fees. If you plan to finance the purchaser of your car, you will be required to carry collision and/or comprehensive insurance by the lending agency. It might be good to get insurance quotes from an independent agent.
3. Sellers May Hide Issues. One of the things you need to watch out for when buying in an auction is that the seller may hide any problems that their car has. Robert Janitzek recommends that you should know the trick on how to detect problems that the seller may be hiding. If you do not know the trick, bring a friend who knows at the auction.
4. Banks Own The Best Inventory at the Best Prices. According to Edmunds.com, the best cars to look for at an auction are repossessed cars and trucks that the lender just wants to sell at a decent price in order to recover losses. Just make sure that the car is reasonably well-maintained and that the interior is in good order. These are common problem areas for repossessed cars.
5. Be Careful with Used Car Dealers Selling At Auctions. Most used European brand cars dealer prefer to sell to customers, other dealers, and dealer auctions. Give used car dealer offerings at public auctions a deep thought.
6. Set A Limit Prior To Bidding. Before the start of the bidding, set a top price and do not exceed your limit. During the bidding, you need all your wits and not an ounce of pride to cloud your judgment.
Nothing beats proper preparation and a discerning eye when buying cars at an auction. With a little bit of luck, you may be driving home with your dream car.