There’s no doubt about it. Online dealer auto auctions are one of the best ways to buy a used car. They offer a number of benefits for the auto buyer that simply cannot be enjoyed through any other means.
Websites that provide access to dealer auctions allow consumers to browse an extensive inventory of used, salvage and like-new vehicles. Because of this, consumers stand a better chance than ever of finding precisely the car they want. Better yet, one stands to save a significant sum on their purchase. In fact, many find that they can save thousands when they buy a used car in a dealer auction online.
Of course, dealer auctions for used cars are a bit different the buying through a dealer. Most notably, one needs to purchase a vehicle in full, as financing will not be an available option. For this reason, many wonder how much they need in order to get started. We’ll be exploring this topic below.
Making Your Initial Deposit
Online dealer auto auctions function in much the same way as a site like eBay. However, there is one notable difference. Given the cost of vehicles, one needs to make an upfront deposit in order to establish their buying power with the websites.
How much must this deposit be? That varies depending upon the site you choose. Generally speaking, though, you’ll find that most online dealer auto auctions require you to deposit one-tenth of whatever you’d like your maximum bid to be. So, if you wanted to bid up to $4,000, then you would need to make an initial deposit of $400. (Do note that most websites have a minimum deposit for new users.)
Thinking About Additional Costs
Ultimately, it’s up to you how much you’re willing to spend on a used or salvage car in a dealer auction online. However, when considering how much you’re going to spend, remember that there are additional costs beyond the final bid price of the vehicle.
For one, it may be necessary to conduct post-purchase repairs, particularly if you’re going to be on salvage vehicles. In addition to this, you will also need to pay for shipping and delivery of your vehicle. This is necessary, because only authorized individuals are allowed to pick up and ship a vehicle from the auction site.
Considerations for International Buyers
It’s not just U.S. consumers who use online dealer auto auctions; international buyers used them too. In figuring out how much money you’ll need, you’ll need to factor in a few additional costs. First, you’ll want to price out rates for international shipping and customs clearance fess. Second, you’ll want to understand what duties and taxes you’ll be responsible for.
Everyone Can Use Online Dealer Auto Auctions
Ultimately, virtually anyone can take advantage of online dealer auto auctions, as there’s something for almost any price point. In order to figure out how much money you need to use them, merely take all of the above into consideration. Doing that should give you a firm budget to begin bidding with!