Tip #1: Know Your Budget and Your Needs
One of the first things that you need to do is know just how much money you have available to spend on the auction. Even though it is possible to get some good deals at car auctions, you will be competing against other buyers. This means that the price could start rising rapidly. Make sure you know your budget and that you stick to it.
Don’t pay more than the vehicle is worth just because you are trying to outbid another party. Even though you might not be able to get the exact car that you want, don’t give up. There are many other vehicles out there, and you should not have any trouble finding something else that suits your needs.
When choosing a vehicle it is important to consider what you need, even more than what you want. What type of vehicle is necessary for your life? Why are you buying the vehicle? Knowing the answers to these questions before you start looking will ensure that you are only looking at the vehicles that are right for you.
Tips #2: Understand the Cars Might Not Be Perfect
These vehicles may not be perfect. They could have some cosmetic damage. They might have engine trouble that you will need to fix as well.
In some cases, the cars are confiscated or repossessed, and other times, they are salvage cars. This means that you may need to have some work done on the vehicle before it is in good shape. This needs to be a part of your budget.
The fact that the cars aren’t perfect is no reason to stay away from a car auction. You are still able to find some great deals. Even when you factor in the repairs, you will find that it is generally cheaper than buying a car through other means.
Just make sure that you know the exact issues the vehicle has so you can determine whether that is a vehicle you want to buy or not. This is especially important when you are buying through an online auction, or with a third party dealer since you will not actually be able to see the vehicle in person. So long as you know what it is you will be getting, you should have no problems.
Tip #3: Think About Insurance
When you buy a vehicle through a car auction, there is a chance that you could have some trouble insuring it. If you buy a salvaged car, for example, getting insurance is not possible until you repair it. Once you complete the repairs, you should be able to get a rebuilt title, which will allow you do get the vehicle insured. However, you may not be able to get comprehensive or collision coverage for the vehicle.
Other vehicles bought at online auctions might need no major repairs, as they could be repossessed cars, for example. Cars that fall into this category should not have any trouble getting insurance coverage.
You should speak with some of the insurance companies in your area to determine how they will handle the different types of vehicles (salvaged, repossessed, etc.), so you have a better idea of what you will need to do once you get your car. This will ensure you don’t have any nasty surprises awaiting you during the insurance process.
Tip #4: Work with a Third Party Bidder
The best auctions, and especially auctions that offer new cars, are not generally available to individual buyers. Instead, they only work with dealers, and this means that the average person looking to buy a car at auction has limited possibilities. Also, trying to go through an auction on your own can be downright frustrating.
Working with a third party bidder that has access to these auctions as a dealer is your best option for a number of reasons. First, you will be able to have access to a wider range of vehicles throughout the United States. You will also be spared much of the hassle that comes with auctions, namely the bidding. Instead, the company with which you are working will take care of the bidding for you. They will bid only up to the amount that you want to spend, so you don’t have to worry about getting into a bidding war with another buyer.
When you are working with a third party bidder, though, you need to make sure they are a reputable company and that they can provide you with quality customer service.
If you live outside of the United States, make sure you are working with a company that has experience with buyers from your area.
Tip #5: Think About Exporting and Shipping
If you are from another country, then you really need to think about how you will have the vehicle exported to your country, and how much it will cost. Working with an expert third party bidder that has experience with exports is the best option. Otherwise, it could take you a very long time to get your vehicle out of the United States and into your country.
With these five tips in mind, you will be able to make the most of the first car you buy at auction. You will come out of the deal having saved some money and without going through too much trouble.