Car Auction in LV
What is Salvage title?

Are Car Auction Prices Worth It? 

By Mike Richards Updated: 05/22/2019 Posted: 10/15/2015

One of the reasons that many people choose to go through an auction when they are buying a vehicle is the price. However, many of the vehicles sold through auctions are salvage titles, meaning they will need to have repairs before they can be driven. This leads many to wonder whether the car auction prices are worth it after all.

The Price Depends on the Bids

You actually have quite a bit of control over car auction prices and how much you are spending. People are bidding on the vehicles, after all. You look for a vehicle that you like and that seems as though it could be a good buy and then you place a bid. Other people and dealers who also like the car will bid on it as well. This pushes the car auction prices higher.

What you need to do is know your limit and the real value of the vehicle. To get a better idea of how much the vehicle is worth in its current condition, you should look at the type of repairs it needs. How much added work would you have to do to the vehicle if you bought it? How much would all of that cost? Compare this with your budget and the salvage value of the vehicle. You can get a good idea of the used car values in sources such as Kelley Blue Book. Of course, if you are bidding on salvage cars, the prices should be lower, to take into account the work that must be done on the vehicle, and the corresponding higher insurance premiums and lower resale values.

If the bidding reaches your calculated value and exceeds it, then the price is too high. You should back out of that particular auction. When you take simple steps such as this to understand the vehicle’s value, it ensures you do not overspend, so long as you don’t get emotionally caught up in the bidding. It’s always better to move on to the next vehicle rather than go beyond your budget.

Speaking of the budget, you have to remember that it isn’t only for the price of the vehicle at auction. It also needs to account for the repairs, inspection, and other expenses.

You Actually Can Save Money

With car auction prices as low as they are, you will generally be able to save money, even when you add in the expense of repairs. Once you have those repairs done, you will be able to get a rebuilt title for the vehicle. You will also be able to get insurance for the vehicle at that point.

Just because a vehicle has a rebuilt title, it does not mean that your insurance prices will be higher. If a company tries to charge you an outrageous amount for your coverage, it’s time to consider working with a different insurer.

Something to remember when it comes to the salvage vehicles is that even though you can get a rebuilt title, you may never be able to have a clean title for the vehicle, depending on the state. This means that if you decide to sell the vehicle, it may not be able to fetch as high a price as you want, even if it is in perfect shape. This is not a reason to bypass these great car auction prices, though. It’s simply something to consider when you are thinking about the overall value of the vehicle.

Overall, most people find the car auction prices to be well worth it. Check out some auctions and see for yourself.

Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.

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