If going to a car display to get a brand new car is just way too expensive, car auctions are the best alternatives. From wide variety of choices of used cars, you can always find the right fit where you can afford to buy. There are different auctions to choose from. One is the government-initiated auctions. These auctions sell seized cars by internal revenue services and other authorities, old police cars, and other unused government vehicles. While one can get the best benefits of this auction, however, competition is always a matter of consideration. There are also auctions which only car dealers are allowed. Participants of this auction must only be a registered car dealer.
However, the most interesting of all these auctions is that one which is open to the general car public. From well-maintained fleet cars to the most coveted collector’s choice car, public car auction is always a catch to any interested car buyers.
Before you will search for some public car auction, it is important to know more about how this will work on. Knowing the basics of car auction would not only make you equip with enough know-how, but would also guide your decisions in your buying options.
Knowing what cars are available for auction is always an advantage to a buyer. Public car auction sites give catalogs. These are readily available to potential buyers for them to choose from a variety of cars. These catalogs are guides for the buyers wherein you can choose different models of the car. However, the catalogs might not be complete with all the specification of what a car is. You must see for yourself and do some more searching of the model cars. Catalogs are only guide for car buyers for the models to be auctioned in the said event.
Public auction welcomes any interested buyer to bid for the cars it will be traded. Because of this, a buyer will be faced with lots of competition among other bidders. It would be better for a buyer to have different options. Having an extra option will minimize the buyer’s frustration of not getting the car of the choice. However, understanding the nature of competition in a public auction, it is always a matter between bidders to settle the score.
It would be advisable that the potential buyer will be aware of the following conditions which might be attached with the item. Knowing some conditions will greatly affect buying decision. It is better to know earlier or might be too late for the buyer to claim damages against the seller.
No Major Engine and Technical Fault
A vehicle sold under this condition should be free from any mechanical trouble and other technical problems. This condition will always catch most of the bidders’ attention because of the vehicle’s good condition. If you plan to go through vehicles with this selling condition, then, you must ready to face competition among the general public.
Specific Engine and Technical Trouble
In this condition, the buyer is warned of the car’s actual trouble. Being forewarned on this, the buyer will be thinking twice of getting the vehicle. With this in mind, a bidder might face not so tough competition among its bidders.
The purpose of this clause is to waive the liability of the seller from any future claims of the buyer. Potential buyers must be aware of this condition attached in any of the cars being bid. Some cars will be cannibalized by some past owners so that these owners can still get the valuables of the car. Once a winning bidder gets any items with “As Is” clause, his claims against the seller will be defaulted.
Aside from the conditions mentioned, public auto auction sites will also place mechanical technician’s report on each of the vehicle for the buyer to be aware of the condition of engine of the vehicle. In this way, buyers will be guided properly with the information making them see the light side of the auction.
Auctions are usually held simultaneously on different site. It is wise for a buyer to proceed immediately on the auction site where his car of interest is on the bid. Bidders will be given placards with identification numbers. The announcer will be the one to announce the bidding price. Fixed incremental rate of the price will be added every time a bidder will aim for the higher price. A bidder must listen to the announcement and must be aware of every price climb. If the bidder has been the highest in the bid so far and no one will contest it, then the bidder will win the auction.
There are also instances that the seller set a ceiling price to the car. If the bidder’s highest price is lower than the ceiling price set by the seller, then the winning bidder must have a negotiation with the seller for the provisional sale. Provisional sale will be completed once the bidder and the seller agreed on the price.
When price is already agreed, both the seller and the buyer will settle for the payment of the car. However, the buyer must be aware that he will not only pay for the price of the car. Other expenses include the buyers fee, insurance premium, road vehicle tax, and the processing payment of transfer of ownership. These payments are usually being collected by the auction initiators to clear the vehicle before releasing. Payment might be in the form of check or cash as long as it does not violate the laws on anti-money laundering laws.
Public auction is the place where cheaper deals for used cars will be traded. However, because of the competition, there will be instances that cars might be exceeding their market price than the auction price. It is better for the auction goers to be more familiar on how auction works and work on his advantage of getting the best deal.