Used car auctions are a great place to get a deal on a nice vehicle. Often banks and new car dealerships bring in cars they need to get rid of quickly. Before attending a used car auction make sure you understand what to expect.
When you get to the auction you will need to check in and pay a deposit. If the auction does not require a deposit, you may have to be a member or you may pay an admittance fee. These auction houses are in the business of making money -- one way or the other.
You should also arrive at the used car auction early so you can test drive the vehicles you are interested in. Most auto auctions will allow you to drive and inspect the cars before the bidding begins. Make sure you know what you are looking for when inspecting vehicles. You may also want to bring a mechanic who can check for cars that are hiding major problems.
Once you have found a couple cars you are interested in, use your phone to look up the Carfax report. You should check out how many people have owned the vehicle and whether it has been in an accident. Also determine the value of the car. Consider the amount you are willing to spend on the vehicle before the bidding starts. Write down this number and make sure you don’t go over the figure in the heat of the moment.
Understand the different lights that may show when the auction begins. Many auction houses use these lights to communicate with potential bidders. For example, a red light means the car is being sold “as is.” A yellow light means the car has some type of issue. The green light allows you to drive the vehicle for a couple hours before making a final payment. A blue light means the title is not yet available. Each of these lights lets you know about potential problems before you start bidding and may affect the price you are willing to pay.
Finally, watch out for used car auctions that only offer vehicles brought in by other used car dealerships. These cars probably need major repairs or the used car dealerships would fix the vehicle themselves and sell for a larger profit. Also you should not consider the auctioneer your friend. Although you should always be polite to the people in charge, they are there to make money.
Auto auctions can be addictive. Once your adrenaline starts pumping and you begin bidding on cars and getting great deals you may have found yourself a new hobby. The more auctions you attend the better you will become at making deals that are in your favor.
Not ready for a car auction? Search here for used car deals instead »
