Buying a used car at auction can save you a ton of money and lead to a pretty decent vehicle that you wouldn’t have had a chance on before. The bids (and seriously, sometimes even thefts) at a used car auction will surprise you. There are a few things to know and be prepared for when looking for a vehicle at auction.
Used car auctions can be local or online. Both have a catalog of vehicles that they will auction for each auction date. If you are looking online for some of the used car auctions in your area or federal auctions, you will find a list of vehicle categories currently available. These listings generally include the basic specifications of the vehicle, such as engine size, 2-door, 4-door, transmission (manual or automatic), mileage on the clock, and VIN number. Usually there is no indication of the actual condition of the vehicle, aesthetically or mechanically.
The list can also indicate the initial offer, reserve price (if applicable), and current offers. Each auction house operated with its own details. Some auctions are closed bids, while most are live bids.
You’ll want to be able to inspect the vehicles you are interested in and auction houses generally open the lot to potential bidders in advance so that you can walk around and inspect the vehicles. Some used car auctions even have mechanics available that you can call to inspect a vehicle and provide you with a detailed report for a small fee.
Once you have found a car that suits you (or several), the bidding process will begin. Make sure to stick to your budget and if the price goes up more than you were willing to pay, STOP. Don’t continue to participate in a bidding war just to win. The idea here is to buy a cheap used car and save up to 95 percent of the actual book value.
When you win a bid, you will have a certain amount of time to submit the payment to the auction house (cash, certified check, money order) and pick up the vehicle. You must be 18 years of age or older and have a valid driver’s license to bid in a used car auction. CLICK HERE to learn more about buying at an auto auction and how you too can save a great deal of cash on your next used car.