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1. Contact auction companies to find the most local car auctions. While calling lenders and government agencies, scouring ads in newspapers and magazines, and looking at online websites can all help you find car auctions in your area, contacting the agencies that run the auctions first is easier. If the company you call doesn’t handle car auctions, ask if they know which ones typically do. You’ll want to call them to get all the information about the car auction anyhow, so it makes sense to start your search here.
2. Know which kind of auction it is. For the most part, public car auctions are open to the general public, but others such as private car auctions are for dealers only. You don’t want to plan to go to an auction only to find out you cannot bid at it. You also want to know whether it will be live bidding (the most typical) or a silent auction. Get as much information as you can about how the auction will be run and things you should know. You want to be prepared and feel confident when you bid. A lot of these auctions con sit of repo cars and can be a great buy.
3. Find out where the inventory is coming from. Government car auctions usually include surplus vehicles which came from their fleet and are usually in good condition but may have higher miles. They also often have seized vehicles which may not be in great condition. Many auctions include repossessed cars that can be bought at wholesale or lower prices but are in still in nice shape. Knowing where the cars come from can help you know what to look for when you inspect them and assist you in determining a realistic value.
4. Research vehicles before the local car auction. Get a list of what will be auctioned off at soon as you can. You want to have plenty of time to look at the vehicles that will be available and find out more about them. Check used car guides for general information about their values and which years had significant problems, so you can avoid those or know what problems to look for.
5. Plan for enough time at the preview. Auctions usually set aside a specific time for interested bidders to look at the cars. It can be a day or two ahead or merely an hour before the bidding begins. Most people know to go, but may not give themselves enough time to really look at each car. You don’t want to be rushed since this is your chance to thoroughly look at the vehicles before deciding which ones to bid on and how much to bid. Be sure to subtract the cost of any repairs from your bidding price. Some people like to go an additional 5-10% lower to cover anything that wasn’t noticed during the inspection.
6. Set-up financing before the auction. Many local car auctions will request a deposit and then the payment in full within a specified time (generally 24-72 hours). You should have arranged any financing you will need before you attend the auction so you will have the money available to complete your purchase in a timely way.
7. Set a maximum bid for each car and stick to it. Auctions are exciting and fun, and many bidders are eager to get the car they want. It can be tempting to keep bidding until you are the highest bidder, but you really don’t want to overpay for a car. Buying at auction means you can find a great deal, but if you bid too much, it isn’t such a great deal. Firmly set a maximum bid and don’t go over it. You may not get the first car you bid on, but other cars will come along.
Other Related Articles
Seven Tips For buying Cars at a local car auction.
Bidding on Repossessed Car Auctions
How to Inspect Repossessed Vehicles
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