If you did a bit of research, you definitely found out that car auctions are a brilliant way to purchase a used car at an affordable cost. Car auctions are simply about going with your wits if you already know exactly the car you want, you just have to take some precautionary measures and thoroughly check the car you are eyeing on, surely, you will find the best bargain.
How Do Car Auctions Work?
The main reason why a lot of people are buying cars at car auctions is simply because they are cheap, sometimes it is because of the kind of car or perhaps because of the fast processing. If the auction is quiet with only a few bidders around, then you could surely drive away a car at a low price compared to purchasing a car from a private seller or a dealer.
So when the actual selling starts, all vehicles are driven towards the auction hall consecutively. Each car stops in front of the stage and then the auctioneer will now be describing the car to the gathered bidders. Take note, it is very important to listen carefully to what the auctioneer utters, because his/her description is considered a “legally binding selling statement”, says the experts.
Next, the auctioneer will then begin to ask for a starting bid. For new bidders, it is advisable that you go to three to four auctions without bidding for anything, just to experience the whole process and also to help you stay clear of making expensive bids. Additionally, there are auction houses that are particular on the mode of payment they accept, so always check beforehand on what type of debit or credit cards you can use.
The actual bidding is done through raising your hand with the catalog and it will continue until no more bidders are left. The bidder with the highest bid will purchase the car and that’s the time you will hear the hammer’s sound. Most of the time, bidding is fast, so be sure to compete with the prices and the number of bidders bidding on the car.
At the end of the bidding, if you are the top bidder, you are required to give a deposit that is usually 10% of the car’s value to the clerk. Right after this, you will proceed to the cashier’s office for the signing of documents and do the rest of the payment.
Why Would a Vehicle Be Sold at an Auction?
There exist a lot of explanations for why cars go for bidding at auction houses. Some are as follow:
- Most of these cars have hung around for quite a long time at the dealer’s garage, and so they are auctioned as a marginal option to get back a portion of the money they have invested.
- The first owners of these cars can no longer meet their payments, so the cars are repossessed, and then the financial institutions auctions them to recoup their money.
- Some cars were damaged due to accidents or weather conditions. So, insurance companies auction them right after paying the first owners with intentions to get back some of the amount they paid out.
Where Can I Find Classic / Vintage Cars Online?
Below is some of the best car selling websites if you are looking for classic or vintage cars:
- Bringatrailer – this website has a list of the most distinguished and outstanding classic and vintage cars in the US.
- Hemmings – you will surely find something worth your money here, as they are one among the oldest and respected publications that offer a wide number of classic cars from the US.
- Craigslist – it is the best marketplace if you want to discover project cars, rare brands, and models, as well as barn finds.
- Dyler – it is the newest website in this list, but it has already gained attention across the world with buyers coming from Germany, Netherlands, Australia, and the United Kingdom.
- ClassicCars – as of today this website is the leading source of classic cars within the US. So, you will definitely see something for you.
- eBayMotors – this is a famous source for classic cars in countries including Germany, but it also draws plenty of classic car listings within the US.
- MyClassicGarage – is among the newer websites that is also getting famous in terms of classic cars. This is an excellent choice if you are looking for an American car.
- Barnfinds – is the same as Bringatrailer but lesser in scale. They have a countless selection of vintage cars that other sources seem to overlook.
Up and coming website to look out for
Bid Garage is an up and coming website to look out for. It is not just a website but a community that connects the auction watcher, the bidders, the sellers, and car enthusiasts to assist them in learning more and finding the best car for them. Stay tuned and check out their website https://bidgarage.com/.
Final Thoughts
These days, car auctions have gained a lot of attention since the current economy remains bad and credit rules have been tended. A lot of buyers that could initially qualify for car loans on new cars now acknowledged the need to purchase it with cash. Because the US is a country built surrounding vehicles and because it is way easier to land a job if you own a car that you can drive on your way to an interview, hence a lot of people are choosing car auctions as the best way to get their much-needed car.
Car auctions give you a shot to find a bargain. Brace yourself on the possibility that you will lose. When things go wrong, you could lose a substantial amount of money if you are going to resell the car.
Now that you know some stuff about how car auctions work along with its risks, and you’ve eyed a gorgeous car at an auction that seems like you can’t find anywhere else, then it could be worth considering.
