What You Should Know About Online Used Car Auctions

By Mike Richards Updated: 08/10/2017 Posted: 10/16/2015

Choosing to buy through an online auction can help you find cheap used cars. Auctions can present you with a larger variety of vehicles than you would find through a used car dealership. An auction can be a great source for those looking to save some money and who want to have some variety.

However, this does not mean that every auction is the same or that you should always buy through an auction. Let’s learn a bit more about what you need to do to get the best used cars for low prices through these auctions.

Research the Auction and the Vehicles

Your first step when finding used cars for low prices at auction is to make sure you are going through a legitimate auction house. While the vast majority of the online auctions are legitimate, there’s always the risk of running into a site that doesn’t have your interests in mind at all.

They could be providing false information on the vehicles they are auctioning, or they could be hosting a fake auction and simply trying to take your money and run. These instances are rare, but you never want to take the chance just so you can have the opportunity to find cheap used cars.

Instead, research the auction site and learn as much as possible about them. How long has the company been around? Do they have a number of complaints against them? Once you can verify that you are working with a solid auction site, you can rest a bit easier.

However, you still need to consider the actual vehicles you are buying. They need plenty of research too. The site should present you with information about the vehicle, including things such as the VIN number. You can use this to look into the vehicle’s history to determine why it is at an auction in the first place.

Work With a Third Party Dealer

Something that you might want to consider when using an online auction is a third party company that can help with the auction process. These companies are able to take care of your bidding for you, and they can even offer help with shipping.

This is extremely helpful if you are buying from another state or even from another country. One of the other big benefits to working with these companies is the fact that they can provide you with access to vehicles that are a part of dealer auctions.

This generally means that the competition is a bit lower. Many of the bidders in those auctions are dealers. They also want to find cheap used cars so they can add to their stock. However, they aren’t going to be pushing up the bidding price too high, as they want to spend as little as possible. This can make it easier to find vehicles at a price you can afford.

Stick to Your Budget

You need to come up with your budget before you start shopping, and you need to think about all of the incidentals that you may need to pay for with the car and apply those. For example, when you are buying used cars through an auction, you may need to make repairs to the vehicle before you can register, re-title, insure, and drive it. You have to account for this in your budget.

The same holds true if you need to ship the vehicle. The cost of shipping can vary, so get an idea of how much it will cost to get your vehicle to your location.

You have to make sure you don’t get involved in a bidding war. Other people may be interested in the vehicle you want as well. This means that they could push up the price. Don’t fall for the trap of going “just a bit higher”. You will find that it could cause you to spend more on the vehicle than it is actually worth, and this will cut into your budget severely.

Is an Auction Right for Everyone?

People have different preferences when it comes to buying vehicles. Some will only buy brand new cars, while others will only buy used vehicles. Some worry about buying through auctions because they fear they will get a bad car. The same can be said for buying a car using any other method, though.

No matter how you decide to buy your car, you have to be willing to put in the research needed to determine whether you are making a good decision or not. This helps you avoid buying a vehicle that will end up costing too much to repair and keep on the road.

While an auction might not be the right choice for everyone on the hunt for used cars for cheap, it is still something you will want to consider.

Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.