Buyer Tips Car Finance

How Saving Money at a Used Car Auction Actually Works

By Odet Garcia Updated: 03/11/2021 Posted: 08/27/2020

Much has been said about used car auctions. Of course, we’ve covered an important amount of information on the topic. However, many buyers still have some doubts about how much money they are really saving when buying a car at a used car auction. It is no secret that your main interest as a buyer is to get the most value out of what you pay, and if you are saving money well… much better! So, in this article we’re going to tell you about how car auctions work and how you can save some money at one. 

Buying at a Used Car Auction

Purchasing a vehicle at a used car auction is much easier than what it seems to be. We have other articles that explain the process with much more details. To sum it up, you first need to register for an account, make a security deposit, search for the car you want, and start the bidding process. You’ll usually have guidance from an auction specialist that will make the process even smoother. 

saving money at a used car auction

Now, as in any other business, you do need to have some precautions. Especially considering that you can find many types of vehicles at these auctions. Some of these cars have some kind of damage or have salvage titles. This is not necessarily a bad thing, but you need to be very careful and thorough with your research.

Further Reading

  1. A Guide to Finding Used Cars for Sale On Craigslist 
  2. Your Guide to Buy Used Cars on an Online Auto Auction Site 
  3. Everything You Need to Know about Buying Used Cars 
  4. How You Can Get Your Next Car from a Dealers Auto Auction 

Saving Money While Buying a Car

As mentioned above, precautions need to be taken at a used car auction as you would when buying elsewhere. By doing your research about the auction and the vehicle you want to purchase, you’ll avoid any problems in the future. This will also give you peace of mind that you are getting a great deal. With these recommendations we have for you, you’ll be able to save at an auction as much as 70% of the cost of the car.

Take a Look at the Type of Car you Want

It is very important for you to have a clear knowledge of the type of car you want and need. Ultimately, the vehicle you choose must fit your needs and your lifestyle. Failing to do so may affect your budget and create future issues for you. You can look at websites like TrueCar or Carvana to glance at different cars that may be good for you. 

Once you’ve made up your mind on a make and model, make sure you research all about that specific vehicle. Take a look at the price ranges and the total cost of ownership. You can look this information up using sites like Kelley Blue Book.

Search for the Vehicles You’d Want to Buy

With the information that you have, you can now search the inventory of the used car auction you picked out. Narrow it down to 2 or 3 vehicles that you might place a bid on, and take a thorough look at the information they have. Some of these vehicles may have salvage titles, or just minor dents and damages. This information will help you know the extent of the repairs that the car needs or if it needs repairs at all. 

It’s always a good idea to make a list of the information you collect from your three options. This will help you have a better idea of which one will be the best fit for you. Also, this will help you look at the total cost of the car and if it fits your budget.

Create a Well-Structured Budget

The main topic of this article is saving money, right? Well, then we need to talk about your budget. Make sure you don’t leave anything out of your budget. You should include additional fees, repair costs, and shipping costs if you need shipping. With all this information at hand you can pay less for the car you want and save up to 70% of the cost of the car.