May 10
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Online car auctions are a relatively new way to purchase your next vehicle. While many people are nervous about the idea of making such a major purchase that way, it can be a great way to find a good bargain.
Advantages of Online Repo Car Auctions
Convenient. Going to several dealerships to find the car you want can be frustrating and time-consuming. Frequently they don’t have what the ad listed at the price it said. Or the new car you want isn’t currently in stock. Online auctions are convenient and make it simple to find the car you want. There is a wide variety of new and used cars for sale online. It is easy to directly compare the vehicles and access information about what is a good price for each one.
“Buy-It-Now.” Many online auctions also have great features like “buy-it-now” pricing, where you can pay a set price for a car instead of waiting for the bidding to close. This is a simple, no-haggle way to pay the amount you want for the car you want.
Automatic Bidding. Some online sites let you set up automatic bidding, so whenever someone else outbids you, it will place another bid for you up to the maximum amount you set. This means you do not have to constantly watch the auction. You can also request notifications to be sent to your computer or cell phone of any new bids it has placed for you and the auction end.
Disadvantages of an Online Car Auction
Scams. One of the biggest concerns about online car auctions is potential scams. It is important to be careful what sites and people you choose to do business with. Focus on reputable websites that have some sort of buyer protection policy. You want to know that they will help you hold the seller accountable if they do not hold up their end of the bargain. eBayMotors.com is a great place to start looking. They have a large and varied inventory, and a name you can trust. This will help you avoid those people trying to get money from you rather than looking to legitimately sell a car.
Fraudulent Claims. Since the cars are viewed online, it is possible for the listing to include features the car doesn’t have or say it is in better condition than it is. Check seller’s ratings (if available) for complaints from previous customers. Sticking to larger, well-known websites makes this problem less likely, though it does occur. If you can, try to focus on closer auctions so that you can go inspect the car in person. Or look for ones in areas where friends and family live and ask if they can go look at it for you. Having someone you trust inspect the car gives you additional peace of mind.
Location. Since many online car auctions feature cars located all around the country, it can be hard to limit yourself to just what is nearby. Even where they are no concerns about fraud, scams or not being able to inspect the car beforehand, you do need to take into consideration how to transport the car to where you are and the costs of doing so. You can still find good deals, even with those additional costs, just be sure to keep them in mind.
Buying a car online is definitely a non-traditional approach that is not without its concerns. But if you are smart about it and careful about which cars you choose, you can easily find a great deal without having to spend nearly as much time as more traditional car shopping requires.
Other Related Articles
What is Auto Repo? Five tips to Help You.
Ten Benefits of Repo Car Sales
A Step by Step Guide to Repo Car Auctions
Great post.
Perhaps I can just add to this that the best way to guard against being ripped off by online sales or auctions of any kind, Craigslist and eBay included—and whether seller or buyer—is to use a *bona fide* online escrow company. Especially for pricier items like antiques, jewelry and autos. Although it does add some cost, it takes the uncertainty out of the transaction, and that’s a small price to pay for peace of mind.
For my money, the best bona fide online escrow (and there seems to be ten fraudulent escrow sites for every bona fide one) is probably Escrow.com (http://escrow.com). In fact, it’s the only one that eBay recommends, and is the only online escrow company that is licensed to provide escrow services all across the United States.
Take care,
Ulf Wolf