Car auctions are an excellent way to save money on the purchase of a used vehicle. These auctions are held by different organizations and groups throughout the year. They may be related to a charity or the result of a police seizure. Shoppers need to look at these vehicles closely before making a bid, because there are no guarantees or refunds allowed.
Types
Car auctions come in a variety of types and styles. Police car auctions, for example, are used by police to sell vehicles that were seized during raids and busts. The federal government uses car auctions to sell off vehicles that were seized during federal arrests and as part of tax-related raids. Goodwill Industries is just one of many nonprofits that hold car auctions throughout the year to sell off those vehicles donated by individuals.
Warning
Car auctions are a great way to save money, but there's no guarantee on the cars and vehicles sold there. Most auctions use a buyer beware mentality, meaning that as soon as the winning bid is identified, that individual purchased the car. It's the winner's responsibility to move the vehicle off the lot within a certain period of time. If the vehicle doesn't work or run, she'll need to find a different way to take the car home. Another common mistake buyers make is in spending too much on a car. The best way to avoid this is by taking a price guide and placing a cap on their spending.
Benefits
The main benefit to using a car auction is that vehicles are often sold at below Blue Book price or the value found in the current price guides. There are typically fewer buyers at the auction than at a car dealership, which means less competition. There are also auctions where individuals can use part or all of the purchase price as a write off on their taxes. Goodwill and other charities that host car auctions allow this because the money goes towards supporting the organization.
Features
Car auctions typically only allow users to pay by cash, though some may accept checks with proper identification. Carfax and vehicle information reports aren't given to auction goers, but they can have one done themselves by getting the vehicle ID number and filling out the information prior to the start of an auction. Often times they can call ahead and get this number days before the auction. There are also a few online car auctions as well, with eBay Motors being one of the more popular choices.
Considerations
Professional car buyers recommend that shoppers do their research before arriving at the auction. It's easy to get lost in the heat of the moment and spend more on a vehicle than the bidder intended, even paying more than the car is worth. Many people bring along the Kelly Blue Book or another price guide to keep themselves on track during the event. It's also important to check over the vehicle before the auction to look for any problems or signs of serious damage.
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