Can you get a great deal by buying a vehicle at a car auction? You can, but you also need to know how to win the car you want to drive.
An auto auction can take place in person or online and gives you a great way to buy a vehicle for a lot less than you would pay at a dealership. In fact, some dealers buy cars at auction and then mark them up, which means you might be competing with these dealers for the car you want. Buying at auction is a strategic endeavor that takes planning and understanding.
Here are some ways to create a winning strategy when you buy from a car auction.
What is the market like?
What cars will be at the auction and what are the fair market values of these vehicles. You probably won’t have to pay the fair market price, most cars go for the highest bid, but you might have to come close. Some owners will place reserves on their cars, which is the lowest price they will accept for the vehicle.
Set a budget and stick to it
When you participate in a car auction, it’s easy to let your emotions run wild and push the bids up because you really want to own a specific car. There’s nothing wrong with this as long as the vehicle is still within your budget, but once it’s beyond your budget, you need to stop bidding. Set a budget and stick to it. Make sure you consider the additional fees you’ll pay, including taxes, auction fees, and potential repairs if the vehicle isn’t up to your standards.
Attend multiple auctions
When you want to buy a vehicle at an auction and pay a lot less than you would at a dealership, you’ll need to attend a few auctions to see how these functions work. Attend some in-person events and some online auctions and see how they compare to each other. When you explore different options and auction events, you’ll increase your chances of understanding the way they work and find the right vehicle at the price you’re willing to pay.
Focus on timing
Attending online car auctions allows you to bid on vehicles from the comfort of your home. Unlike in-person auctions with a caller, online versions have a specific end time, and you must bid before the end to become the winner. Entering a last-minute bid can get you the car you want, but you might not be the only person employing this strategy. Some auctions will also extend the time if last-minute bids are entered, giving other bidders a chance to place higher bids before the time expires.
Understand the auction rules
Every car auction has its own set of rules and regulations. You need to know this before attending the auction. There are rules for bidding increments, fees, and payment methods. You don’t need to be surprised by anything when you’ve won the bid for a vehicle and then can’t pay because you don’t have the required payment method. Knowing the rules can help you navigate the bidding process with confidence and avoid unexpected fees that might come up when you’re trying to win the bid for a special car.
Avoid bidding wars
The fastest way to bust your budget during an auction is to get into a bidding war. Not only does your desire for the vehicle grow, but your need to win becomes a serious issue as well. The excitement and adrenaline associated with a bidding war can be a serious problem and cause you to spend a lot more than you should on a vehicle. Make sure you avoid this and be patient with your bid. Wait for the right moment to place your bid, and if the price goes too high, be ready to walk away, no matter how you feel about the car.
Keep your cool
The old term “never let them see you sweat” applies to bidding in a car auction as much as it does anything else in your life. It’s important that you stay cool under pressure and don’t allow the auction to become overwhelming and push you to bids that aren’t comfortable for you. Avoid allowing your face, body language, or anything else to give away your excitement until you’ve won the bid. Once you’ve won the car that you want to drive, you can let the emotions fly and enjoy your win.
Use these rules for your next car auction and enjoy a great vehicle at a rock-bottom price.
