I would like to know how the process of buying from an auction works; do you have to be a car dealer to participate in an auction? how can you be sure the car is mechanically sound? How can you determine what a good price to pay for the car is?
2007-08-11 06:22:40 · 5 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
There are two basic types of types of auctions, dealer only and public. At a dealer only auction the sales are between dealers. At a public auction, the general public is allowed to buy.
Each auction has their policies and conditions of sales. At some the vehicles are driven into a sales lane, at some they are sold in the parking space. Most auctions will have a time for the buyers to inspect the cars be fore bidding, but few if any will allow the car to be driven! You can start the car, and put it in gear, but you can not move it from the parking space!
All auctions will require you to register be for you can bid. Most public auctions will require you to post an amount of money (which varies from auction to auction) as a deposit when you register and you have to pay for your purchase within a set period of time!
Check the car as thoroughly as you can. Check the condition of all the fluids. Transmission fluid should be red and not smell burnt. The oil should be clean, and not look like a chocolate milkshake!
You have to figure that you are going to spend some money on repairs! The car is in the auction for a reason. Most cars at public auto auctions are either owned by dealers, charity donations, or government / fleet vehicles!
Be aware of the value of the cars, and adjust your price to allow for repairs!
2007-08-11 07:30:06 · answer #1 · answered by fire4511 7 · 4⤊ 0⤋
Most large used car auctions require you to be a licensed dealer to participate. However, there are smaller auctions and government auctions that are open to the public. See the following web site for more details:
http://www.leaseguide.com/Articles/carauctions.htm
Since you don't get to actually drive auction cars, you must rely on your own experience or the experience of a mechanic to know if a car is in good condition. Try to get a list of the vehicles being auctioned a few days ahead, and do online research to determine a maximum price that you're willing to pay for each vehicle you might be interested in.
2007-08-11 06:35:58 · answer #2 · answered by Anonymous · 2⤊ 0⤋
I'm just writing with some friends and family's experiences with auctions: (You should totally vote one of the guys above me for best answer!)
1. If you know a good mechanic, offer to swap services. Mow his grass and take him out to eat somewhere really nice or do his taxes or promise to babysit his kids for a v. long time. In return, he goes with you to the auction. You're not taking advantage of your friendship this way, but are valuing his expertise. His knowledge will save you tears later. Your thank you gift once you've bought the car, btw, should include alcohol unless he's Baptist or similar. . .(I reccomend large quantities of a good beer or a v. nice wine.) Trust me. You're still coming out way ahead.
2. Don't expect anything sexy or cool to come up at auction. Expect to see a lot of standard sized, family style cars that have been used as fleet vehicles and a lot of fleet trucks with a few dings that are very, very basic on the interior and are a bit greasy inside.
3. Nothing at an auction will be perfect. Hope for a sturdy car that needs new tires, has only a few dings and doesn't have too much grossness going on in the trunk and backseat. Remember: mechanically sound trumps just about everything else.
4. Bid just a few dollars above the minimum bid. You're taking a gamble, even with your mechanic friend along. And what's the rule for gambling? Don't gamble more than you can afford to lose.
5. If your mechanic friend looks at a car you desperately want and says it isn't worth it, OBEY HIM!
2007-08-14 17:46:22 · answer #3 · answered by shovelbum_mud_lover 4 · 1⤊ 0⤋
Yes, I hold auctions frequently with vehicles that haven't been claimed. No, you don't necessarily have to be a dealer to bid, check the rules for the one you are interested in. There is always a time to inspect vehicles a few days before they go up for bid, bring your mechanic and have him look at anything you might be interested in. A good price is the lowest bid accepted. Don't get caught up in the heat of the bid and over bid just to take it away from someone else though.
Some have no minimum, others do. I'd just go watch the first time or two until you get a feel for it.
2007-08-11 06:30:47 · answer #4 · answered by oklatom 7 · 2⤊ 1⤋
You find the car aucton that is opened to the public.
Then you find the car you want - look it over - locate the owner, and talk to him, ask questions, look it over real good.
Take it for a spin - if he says NO - dont bother.
As far as a god price - it is up to you to negotiate and be smart, dont pay 7000.00 for a 95 Neon with 176000 miles, it is only worth about 500.00 at auction
2007-08-11 06:39:18 · answer #5 · answered by cgriffin1972 6 · 0⤊ 3⤋