2006-11-15 12:06:26 · 8 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
what should I pay attention on? will the bank approve a private auto loan?
2006-11-15 12:07:16 · update #1
Buying from a private dealer auction, my friend's friend goes to the auction every week. I want to know if I should give him a "go ahead"?!?
2006-11-15 14:26:49 · update #2
When you buy a car from an auction, you may get a good car, or you may not. Unless you know what you are doing, you can easily lose a lot of money.
I am assuming that you are referring to auctions that allow the public to purchase vehicles, not a dealer only auction. With public auctions you will find that there are really only a few sources of vehicles, dealers, charity donations, impounds and fleet (government) vehicles. Most donation cars have been donated because they have problems. Many of the cars that dealers put in such sales are cars that they do not want to put on the retail lot, due to mileage or condition.
Impounded cars usually have problems, if they were in great condition, don't you think that the owner would have paid the fees and reclaimed the car?
Fleet cars are hit and miss. Some jurisdictions and companies take great care of their vehicles, some neglect maintenance and it shows.
You will have to have the money to pay for the car the day of the auction, they will not wait for you to get a loan approved,
Be very careful and check out the vehicle as well as you can before you bid. Allow for repairs in setting your top bid, because you will have to do some!
2006-11-15 12:49:32 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
The dealership that I work at send all of the cars with problems and are not worth fixing to the auction. As long as they run and stop. That is the only requirement. Usually at an auction, you can look vehicles over before you bid on them. Be Very Careful.
2006-11-15 20:41:33 · answer #2 · answered by typhon1991 3 · 0⤊ 0⤋
Be prepared for a LOT of maintenance costs. Auction cars have no warranty. Also, most banks will not approve a loan on an auction car as they have no equitable value and are too big a risk.
2006-11-15 20:10:21 · answer #3 · answered by Kilowatt 2 · 0⤊ 0⤋
It is risky because there are no disclosures on the car so you don't know how its been maintained or if it's been abused. I don't believe most auctions allow a test drive either- only a visual inspection. It's a gamble whether you will get a lemon or a gem! I don't know about financing but surely you could get a personal loan to do with as you please.
2006-11-15 20:18:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
just look for smoke from the engine drive and listen for noise coming from the drive train. check milage and look for wear on the upholstry see if it looks like the miles and wear match then be slow to raise the bid. watch the auctioneer and wait until the last second before you raise the bid
2006-11-15 21:45:35 · answer #5 · answered by roy40372 6 · 0⤊ 0⤋
its best to pay cash around 2000-3000 i would have a paid 2000 for my car it is in good condition. but it was a public action have somebody with you to look at the vehicle
2006-11-16 12:02:12 · answer #6 · answered by justme 3 · 0⤊ 0⤋
Only if you have already inspected the car and know its history and value (refer to the Kelly Blue Book). If you don't know what to look for and don't have a knowledgable friend who knows, then I would have to say, "Pass."
2006-11-15 20:17:19 · answer #7 · answered by Doc 7 · 0⤊ 0⤋
See who's selling it. Lease co's or rental co's ok, but if another dealer is selling it, I'd be careful.
2006-11-15 21:56:26 · answer #8 · answered by Papa John 6 · 0⤊ 0⤋