Are you conflicted about buying a used car in a car auction or private sale? When buying a vehicle, there are a lot of factors to consider – budget – model – mileage – engine capacity – durability, etc. Based on your need and demand – for private use, family, or business, you may buy from a car auction, dealership, or a private sale.
It’s great to always have alternatives- even when buying a vehicle. But before taking the next step toward your vehicle purchase, you need to weigh the pros and cons of both buying methods and take an informed decision.
It can be overwhelming but doing so could potentially save you thousands and help you purchase a vehicle you will be happy with in the end.
Wholesale Car Auction or Private Sale?
A car auction is a public sale organized by an auctioneer where the highest bidder for the vehicle becomes the new owner. They have become a convenient and popular way for people to purchase their vehicles. Also, car dealers can maximize profits when they buy from car auctions.
A private sale is when a car owner wants to sell his/her vehicle and they handle the entire selling process to maximize their profit. The seller’s price can be negotiated and the seller is less likely to engage in high-pressure selling.
Buying from a Car Auction
You might be wondering why car auctions? It’s simple – the price!
The prices at an auction are a lot cheaper than at private sales or dealerships. In fact, car dealers prefer to stock their dealerships through auctions as they are able to buy at a fraction of the retail price and thus maximize profit.
Some cars, especially government pre-owned vehicles and repossessed vehicles often come in excellent condition when they are put up for auction.
Participating in a car auction yourself however may be exhausting and potentially problematic without the help of wholesale auction platforms like Auto Auction Mall, either way, you are compensated with the value for your money.
If you are a car dealer or running on a tight budget, car auctions are definitely a great alternative for your next purchase.
Compared to private sellers or local dealerships, car auctions have a broad range of vehicles to choose from including Trucks – SUVs – sedans – whatever make or model. The variety in car auctions is tremendous and there is a vehicle for every buyer. You can get near-new vehicles or wrecks you want to cut down and sell for parts.
Auto Auction Mall gives you full access to over 150,000 vehicles to choose from.
Car auctions have a range of vehicles of any brand. Exotic, vintage, and luxury vehicles can be bought at affordable prices. Whatever your needs or demand for a vehicle is, a car auction will suit you better.
You can choose to visually access the vehicles through the pictures on auction sites, purchase vehicle history reports or order a physical inspection of the vehicle you are interested in buying. But it is important to note that the sale condition of wholesale auctions is that you are buying… “where is, as is, with all faults”. To put it briefly, you are buying as-is.
WIth wholesale auctions, it is usually the buyer who wins. To know more about why you need at the very least, to purchase a vehicle history report click here.
Buying from a private sale
There are different reasons why private sellers put up their vehicles for sale. Whatever the reason may be, private sales eliminate the middleman factor and buyers deal with sellers directly. A buyer can sometimes land a car deal at a lower price than at a dealership especially if the buyer assumes the responsibility for repairs.
A seller will most time sell their vehicles when their service and maintenance records are up to date. This motivates the seller to sell privately because they don’t want their vehicle to be undervalued in a dealership. A private sale will help the seller maximize their profit, especially if the buyer appreciates the vehicle’s condition. But the buyer may not get a great deal.
Some buyers may prefer the private sale because they believe they can negotiate and land the best price deals. Vehicles purchased from a private sale can be inspected, and test run, and the transaction process is quicker.
The condition of the vehicle is not guaranteed, since a seller is not bound by dealership obligations. There is no incentive in private sales such as reviews, and the reputation of the seller cannot be measured. A private seller does not handle the burden of transferring titles and documentation becomes the responsibility of the buyer.
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Most importantly, private sale vehicles are super expensive. Sometimes more than double the cost of getting an equivalent vehicle at wholesale auctions.
With private sales, in most cases, the seller wins.
When purchasing a used vehicle, it is advisable to check the vehicle’s history report. The report will contain the owner’s data, odometer reading, registration history, and repairs – this can help you make an informed decision.
If you decide to purchase from an online auction like Auto Auction Mall, you need to determine your budget, research the vehicle you want to purchase, and get expert assistance. Secondly, sign up here to participate in dealer-only auctions and have access to a variety of vehicles.
Our representatives will be happy to guide and assist if you have further inquiries or require more information on estimates. Finally, you can schedule an auction for the vehicle you choose.
Click sign up to get started now.