When most people think about vehicle auctions, they imagine very inexpensive prices. While this could happen, the prices aren’t always quite as low as you might think. Auction car prices can vary, depending on a number of different factors. Therefore, you need to know what can cause this fluctuation when you are getting ready to buy.
The Type of Vehicle
One of the first things that you need to remember with auctions is that they have many different types of vehicles. Some will have the cars that you will regularly see on the lots, such as Corollas, Civics, and the like. However, there may also be some classic cars and some exotic sports cars in these auctions. Naturally, the auction car prices will vary when you compare a 2012 Ferrari and a 2012 Corolla. You need to know the type of vehicle you are considering and then start looking up some of the average auction prices for which those vehicles sold.
The Condition of the Vehicle
You will also need to think about the condition of the vehicle. Auction car prices are greatly affected by this. A vehicle that is in nearly new condition is certainly going to be priced higher than a vehicle that has a salvage title. This is something you could use to your advantage. Just because a car has a salvage title, it does not mean you shouldn’t consider buying it. As long as it is not to be sold only for parts, you can check to determine just how expensive the repairs will be. Many times, even when you add in the repair cost so you can get a rebuilt title, it is cheaper than buying other vehicles.
Perceived Value
Auction car prices will also vary based on how many people actually want to buy the car. In an auction, people will bid on the vehicle they want. When more than one person wants to buy it, they will raise the bids. This pushes the potential price of the car higher. When people get into a bidding war over a car or truck, the price can rise quickly. As a smart consumer, it is your job to know when the price gets to the point that it no longer makes financial sense to keep bidding. Know when to stop bidding, and you will find that it is much easier to ensure the auction car prices you get are as low as possible.
Of course, for many people, this is easier said than done. They find a vehicle that they really like and think that they should own. They end up bidding and spending too much and may regret it later. A good way to stop this from happening is to find several cars that you like. If bidding on one doesn’t work out for you, just start bidding on the next vehicle in line. Try your best to keep emotions out of the equation.
After the Auction Fees
Something else that you need to keep in mind when it comes to car auction prices is that the final bidding price is not the only thing that you will be paying. You also have to pay fees to the auction house, as well as fees to a dealer if you ended up going through a third party proxy to help with the bidding. You may also need to pay to ship the vehicle to you. It is a good idea to take the time to research these fees beforehand and factor them into your budget. This way, you know exactly what you are spending.
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