Jun 10
15
If you are interested in making winning bids at local car auctions, you need to think beyond just being the highest bidder. You can “win” any auction by being willing to pay more for the car than anyone else, but that is not always a good idea. You don’t want to overpay or end up with a car that doesn’t work for you, whether you are looking for something to drive yourself or to resell. Winning bids come down to two basic things: choosing the right car and bidding strategy.
Choosing the Right Car
Start by asking the auction agency for a list of vehicles available at the next auction. Mark the cars you are interested in and do a little research about those models before the preview period.
When the vehicles are available for inspection, carefully look them over. Give yourself plenty of time, since this isn’t something you want to rush. Most auctions are “as-is” and this is your only chance to look for problems. Some auctions will allow you to return a car if you find major problems 1-3 days after the auction, so ask about this beforehand. Usually, it’s based on a state’s “lemon law,” so you can double-check with your state to find out the details of state policy.
As you inspect (test-driving is not available at auctions) each repo car for sale, make a note of any minor repairs needed. Unless you are a mechanic or know one who will do the work for you really cheaply, you should just avoid any with major problems. Chances are there will be other things to fix that you didn’t notice and you may end up with a real lemon. Minor fixes won’t be such a big deal and you often have to deal with cosmetic flaws anytime you are looking at a used car.
Subtract the costs of the needed repairs from the trade-in value (found in the KBB or NADA guides) to get your highest bid for each car. If you don’t know how much the repairs will cost, the best way to find out is to call a couple local mechanics. They can give you a good idea of what costs are for that model.
Bidding Strategy
Arrive at the auction early with all your notes. Auctions often get more crowded as they go, so there is usually less competition early on. The bidding goes quickly, so pay attention or you might miss the car you want to bid on. Always double-check the number so you know that you are bidding on the right car and keep to your maximum bid.
Once the car comes up, let someone else start the bidding. If a lot of other bidders join in, the price may go up quite quickly and you are better off waiting for another one. If there is little interest, go ahead and place your bid. Make sure the auctioneer acknowledges your bid and then looks to you for subsequent bids.
Be very careful not to get in a bidding war with another bidder. That back and forth bidding causes the price to escalate quickly and gets competitive and emotional. It is better to step away and wait for another car you can get at a better price.
Once you are the highest bidder, be sure you can complete your purchase. You should ask beforehand how much of the purchase price will be needed right away and how quickly the rest will need to be paid. Also find out what forms of payment are needed; often cash and cashier’s checks are the only acceptable methods. It is always a good idea to have any financing figured out well in advance and the money easily available because you usually have to provide it all within 3 days of the auction.
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