FAQs for a Car Auction Winning Bidder
Congratulations, you have now won the auction. The vehicle of your dreams that you have just bought at such a low price is now one step closer to being in your garage but you don’t know what to do as soon as that hammer comes down and you are announced as the winning bidder. Here are the FAQs that most winning bidders want to know the answers to:
1. How much deposit do I have to pay?
The average deposit amount is $200, but some auctioneers require you to pay $500. So you should at least have this amount in cash.
2. How long do I have to settle the outstanding balance?
You must for the car in full in 24 hours. This timeframe also applies to the pick-up of the vehicle. If you are able to pay for it on the day of the auction itself, it’s even better. The vehicle will only be released to you when the full payment is received.
3. How do I pay the outstanding balance?
You can either pay by cash, bank cheque or through a financial institution. Some auction houses even accept Visa and MasterCard.
4. What else do I have to pay?
On top of the price of the winning bid, you would have to pay a buyer’s administration fee and a handling fee. Sometimes this fee is a flat one, on other occasions it is based on the value of the car. In this case, the more expensive it is, of course you should be prepared to fork out more but it isn’t really very a big figure.
5. What is a referral?
A referral is when the winning bid doesn’t come to the reserve price. Thus, a negotiation is called between the winning bidder and the owner of the vehicle. This is called a referral. The owner then decides whether to let go the vehicle at the amount that won the bid, or else the bidder would have to top up to own the car if the owner doesn’t budge. A referral only happens if the winning bid falls just slightly short of the reserve price.
6. I won the bid, but why are they not selling it to me?
That is because the winning bid is below the reserve price. The reserve price is an amount that the winning bid has to exceed. The vehicle will be entered into the next auction and then you may come and bid for it again!
7. What if I decided not to buy the vehicle?
You will lose the deposit that you have made.
8. When can I drive home the car?
You can drive home the car as soon as the auctioneer has received the full payment of the vehicle, either by cash, card or cheque. The money had to be received in their account before they can release the car to you.
It is hoped that the answers to the questions above help your understanding of your position as the winning bidder!
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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