6 Things You Need to Know About Car Auction
Prior to attending a car auction, it is useful to know these 6 things about them so that you are prepared for what’s in store for you:
1. The source of vehicles
The vehicles at a government car auctions are seized by government agencies such as the police, Drug Enforcement Administration (DEA) and the Internal Revenue Service (IRS). That said, don’t expect the vehicles to be in tip-top condition as they are well, used.
2. No warranty or guarantee
Vehicles sold at an auction are sold as they are. No warranty or guarantee will be given, unlike the one or two months that you may get from a used car dealer. If the car you have purchased has problems, you have to deal with it on your own, for there is no contact whatsoever with the owner nor will these agencies take care of those repairs.
3. Goods sold are not returnable
If the car you have bought turns out to have serious defects or you are dissatisfied with it, you have no choice but to swallow the pill. Auction houses assume that bidders know what they are getting and it is actually the bidders’ responsibility to check the item with the help of a mechanic, therefore vehicles sold through an auction is not returnable.
4. You pay more than just the winning bid
Why, are there hidden fees, you may ask? They aren’t really ‘hidden’ but the total amount that you need to pay consists of a buyer’s premium that costs between 5% – 10%, a license, transfer fee and a registration. The buyer’s premium is actually the cost of the auction house’s services, as well as the auctioneer’s.
5. There are physical inspections
Sometimes, potential buyers are allowed to inspect the vehicles prior to an auction. If you are allowed the opportunity, do so by all means. At other times, you will only be allowed to inspect the cars before the auction starts, but that is good enough to at least know what you are in for. Make use of these opportunities and bring along a mechanic with you.
6. Auctioneers have tactics to get higher bids
Auctioneers know how to get bidders to keep naming prices even though it looks like the bidding has finished for a particular item. You would need to attend one of the auctions to observe how they do this. Take note of their tactics to encourage further bidding, and then you’d know how to stay ‘safe’ from this later when you are ready to make bids yourself.
Now that you know what goes on in an auction house, you’d be better equipped in securing that winning bid!
This article was prepared on behalf of YourNextCar.info, an authority website in government seized cars. Visit the website to learn more about how to win in car auctions.
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