Can I buy cars at auction? Yes, you can buy cars at auctions. The used car market has seen steady growth in the past ten years. In 2017, 35 million used cars were sold in the United States. In 2018, the number of used vehicles sold rose to 40.2million. This is more than double the number of new cars sold. A significant number of the used cars were bought from auction sites.
Undoubtedly, some people have reservations about auto auctions. There are so many auctions, and some people have had terrible experiences. Before you decide on the auction site you use, it is crucial for you to differentiate authentic auctions from those that are not. The main types of auctions are government, public, and private.
The difference between the types of auctions is primarily the source of the vehicles and the targeted buyers. Government auctions involve the sale of cars owned by the government, while private auctions are organized by private entities, such as insurance and rental companies. Public auctions offer a more extensive selection of cars from various sources.
The cars in public and private auctions come from the same sources. However, public auctions attract more used car buyers, so most individuals and companies choose to sell their cars in public auctions.
When considering public auctions, it is essential to note that some are open to anyone interested in buying a used car, while others are only accessible to dealers. Dealer-only auctions are quite popular for various reasons.
Advantages of Dealer-Only Auctions
Cars in Different Conditions
Used car buyers have different interests. Some are interested in cars they can buy dirt-cheap irrespective of their condition. Others are looking for vehicles that are as good as new. Some buyers focus exclusively on salvage cars.
Salvage cars are those that have been involved in accidents or damaged from a natural disaster. Some dealers and private buyers favor these cars because they are cheap. It is easier to bargain for a lower price when the vehicle has a few scratches or dents. Even after rebuilding it, the total cost of the car may be much lower than if you had bought the same type of car in mint condition.
If you are interested in a salvage car, you need to confirm the damage is superficial. It is important to identify the reason behind it being in the salvage category. For example, was the car involved in a crash, or is the damage due to floods? Salvage cars from areas hit by floods are more likely to have mechanical issues. It would be best to get a mechanic’s opinion before paying for a salvage car.
Access to a Wide Range of Cars
Even though these auctions are dealer-only, it does not mean you have no access to them. But usually you will need a dealer license to have access to the used vehicles on sale. Each state has different conditions you will need to meet to acquire this license.
On the other hand, if you don’t want to go through the hustle of getting a license, you can get access to the auction through a dealer. Some dealers offer buyers the option of live access to the auction.
In this case, you can work with the dealer to identify the cars you wish to bid on. The dealers then place a bid on your behalf. The third option of accessing dealer-only auctions is by bidding online. This option helps if you don’t want to go through the dealer. However, in this case, your access will be limited to a few cars.
Auctions have a vast array of cars, including popular and hard-to-find vehicles. Most sought-after cars tend to come at a higher price than vehicles that are few on the road. Cars can be in demand because of their exterior, fuel economy, and engine power. Unfortunately, vehicles with a low resale value are not popular because they depreciate at a fast rate.
If you love vintage cars but have not been able to acquire one because of their scarcity, a great place to begin your search is an auction. Whether you are a collector yourself or if you hunt for the cars to sell at a profit to collectors, you have a higher chance of getting what you want at an auction.
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- Government Auctions vs. Salvage Dealer Auctions
- Everything You Need to Know About Insurance for Salvage Cars
Increased Opportunity for Great Savings
When buying a used car from a dealer, you will naturally pay more than what the dealer paid. Dealer-only auctions let you take advantage of some of the best prices, including those available to dealers.
Before bidding for a car, you need to find out its market price. Find out if the average price fits your budget. If not, it may be best to look at other brands with similar specifications or an entirely different car.
It is also vital to ensure you have all the money before you start bidding. Most auctions do not offer financing. You will be required to make the payment in full. You are more likely to make a great deal if you have all the money at hand.
A Great Business Opportunity
Refurbishing auction vehicles for sale is a great business opportunity. This is because you will buy the car at a low price. After fixing it, you will likely sell it at a price that will earn you a tidy profit. People interested in salvage cars are very selective of the cars they buy, especially if they want to turn them into collector pieces.
However, you need to understand the repairs the car needs before buying it. If the repairs are going to be too costly, you are likely to sell the car at a loss. The amount you sell the car for may not be worth the time and money you invested.
Auctions offer an excellent opportunity for you to buy used cars. It is possible to get a great deal in terms of price and condition of the vehicle when you have an extensive selection to choose from. It would help if you compared the various auctions, their terms, and participation options available for you before committing to one.