Do you have a taste for luxury but the one thing stopping you is the price tag? You’ve probably always wanted to own a Ferrari or a Mercedes, or Lexus, etc – But it costs an arm or a leg, or both!
Your hopes don’t have to be dashed – you can still drive your dream luxury car even with a tight budget. All it takes is knowing the right place to look/buy from and understanding how to buy.
There are different options to pick from to purchase your luxury car – used car dealerships, private sales, or used car auctions.
Let’s delve into each of these options below.
Buying From a Private Sale
For a lot of buyers, buying a used car from a seller is really common – sometimes you have a friend or an acquaintance looking to sell their luxury car and believe you can negotiate to get the lowest price.
This buying method cancels out variety and options, this is particularly good for buyers who have set their mind on a particular model. As opposed to dealerships, buyers are more likely to land deals at lower prices, especially if the seller is making a desperate sale. Buying from a private seller has its pros and cons…
The pros of buying from a private sale are that the cost of purchase can be much lower than buying from a dealership. This is because the seller has no financial expenses to offset like a dealership that has to pay rent and employee salaries, tax, etc.
A private seller may not necessarily want to make a profit from the sale – they just want to get rid of the car and make some cash on it. Because of this, it’s easier to negotiate prices and close deals faster than with a dealer.
The downside is that it may put the buyer in a vulnerable position – especially if you found the seller online. You will have to meet a random seller you know nothing about to work on a deal – go to a location you may not be familiar with to inspect the car. This makes it difficult to access the condition of the car you want to purchase and only rely on the information the seller puts online.
There are no warranties offered by sellers when it comes to a private sale. Also, the seller is responsible for handling all registration and documentation processes. You will have to take the title to your local DMV and in some communities will have to be in a queue for long hours.
Buying from Used Car Dealerships
These usually sell a retail outlet, and also known as independent dealerships. They usually get their cars from used car auctions, wholesale, and trade-ins.
The advantage of used car dealerships is that they have a relatively wide inventory and a variety of luxury cars for buyers to choose from.
Buying from a dealership takes the hassle off the buyer but at a much higher price. They offer all the paperwork, documentation, and title transfer for your new car. You may have to give an arm and a leg for your luxury car at a dealership because prices are higher at dealerships. They offer better legal protection, you can inspect the car you want to buy and can test drive.
Buying From Used Car Auctions
Auto auctions are a cheaper way to buy your dream luxury car without breaking your bank.
Online auto auctions are not that difficult if you know the hoops on how to land awesome deals on your purchase.
Buying from an online used car auction is way cheaper and hassle-free as you will bid for your luxury car from the comforts of your home. You may end up winning a car for the reserve price if you do your homework and there is low competition on the car.
Compared to used car dealership inventory, used car auctions have a wider range of different luxury brands in one location at a time. There is always a car for every buyer.
To avoid being carried away during the bidding process and end up paying higher for your dream luxury car and lose money, consider applying these steps.
Step 1: Plan and Budget
This is the first step before purchasing your luxury car. When planning, you need to have a clear knowledge of what type of luxury car you want. Take note of the make, model, and year of the car – this will help you with budgeting.
You can do some research and take a look at the price ranges using Kelly Book and set a maximum budget. Having a clear knowledge of the vehicle you want helps you not to overspend and save money. When setting your budget, you need to factor in registration fees, taxes, cost of repairs, shipping fees within and outside of the United States, etc.
Step 2: Find an Online Auction
After you have set your plan in motion, the next step is to find an online auction that suits you. When you search for cheap luxury cars, online sites like Copart, Auto Auction Mall, Salvagebid, etc should pop up. Move on to register on their site which takes less time.
Registration on Auto Auction Mall is free, and you do not require a license to place bids on the luxury car of your choice. Once registration is done, you can have access to the luxury car inventory.
Step 3: Vehicle History Report
Before purchasing the car you want, it is recommended to run a vehicle history report on the vehicle. The vehicle history report lets you know everything about the car you want to purchase. It has information on the previous owners, accident history, mileage, maintenance history, title status. If you skip this step, you are likely to end up with a lemon – and your money lost.
A physical inspection of the ideal if you want detailed and extensive information on the current status of the vehicle. This is done by hiring a professional mechanic to physically inspect the car of your choice. A physical inspection costs more than running a vehicle history report – and should be done by a professional.
Step 4: Shipping/Delivery of the Car
Once you have won your desired car and completed all payments – the next thing is having it delivered to you. You have to work with companies that deliver vehicles to have this done. You don’t need to panic if you don’t know any – your auction specialist can help you set this up.
If you are outside of the United States, contact any shipping company of your choice. They will process your shipping and have it shipped to your country. If you buy through Auto Auction Mall your auction specialist can assist you with shipping arrangements outside of the United States – if you desire.
Step 5: Service Your Car After Purchase
Purchasing a used car means that you may inherit underlying issues from the previous owner – therefore initial servicing is required! This helps you identify parts that need replacement and servicing. One of the important things to look out for is repair maintenance as this will require an arm and leg to replace.
Have a mechanic run other necessary initial maintenance on other components like transmission, suspension. Replace brake pads, fluids, fuel filters, and other components that need replacement. Ensure that all your car fluids are gauged before jumping behind the wheel in excitement.
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- Where Should I Buy from? Wholesale Car Auction or Private Sale?
The cost of buying your luxury car may vary depending on where you purchase from. You may find a private seller who may offer less for a car but it’s not what you want. This is because of the limited inventory of private sales. There may also be damage that may be too much for you to handle during the vehicle inspection. And there may likely be no other option – unlike dealership and auctions.
Dealerships have a wide inventory but most of their purchases are from wholesale auctions. This increases the cost of purchase for the buyer.
For example, a Mercedes Benz GLC 2018 from a Used Car Dealership from $23,000 to $57,000 depending on the condition. While from an Online Used Car Auction, the buy now price ranges from $21,000 and you may win the auction for less.
Wholesale auctions have a wider inventory than both private sales and used car dealerships. Buyers have options even with a particular make, model, year. This is a better option for buyers who want to save while driving their luxury car.
Before jumping behind the wheel of your new luxury car, it is essential to service it to avoid heavy expenses. Run a Vehicle History Report for a small fee or request a physical inspection which costs a bit more.
Also, make sure all repairs and maintenance are done by a professional, who specializes in luxury cars to avoid errors.
To purchase any luxury car of your choice, sign up with us for free and have access to our inventory of over 150k vehicles. Our auction specialists will assist you with budgeting and give realistic estimates for your purchase. You don’t need to push forward that dream of driving your own luxury car – Sign up now and start bidding!
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