A number of people are turning towards car auctions instead of going to a dealer when they want to buy a used car. This is because car auctions have a reputation of selling good cars at extremely low rates. In fact, most used car dealers also pick up cars from auctions and then sell them off after adding huge profits to the cost price of the car. If you also want to buy a used car, then checking out a car auction before you start approaching dealers is a good idea. If you have no idea about what car auctions entail, then here is a basic car auction guide that will tell you about the best types of car auctions and how to bid at auctions.
· There are many kinds of car auctions, but most people will be quick to tell you that government car auctions are the best. Auctions held by government agencies score over other auctions in a number of ways. The main advantage that buyers get at government auctions is that the motive behind these auctions is not to make the maximum profit but rather to get rid of piling amounts of seized or out of commission inventory. At the same time, you can also be sure that government agencies do not tamper with the odometers or spare parts, which can be quite a possibility at private auctions. If you are looking out for luxury cars, then once again government auctions, especially those held by law enforcement agencies can prove quite fruitful for you, since these auctions often throw up sports or luxury cars that have been seized from criminals and law breakers.
· Now that you know which auctions to go for, you have to know where to find them. While most government agencies advertise their auctions in local newspapers, some might not do so. You can find out about auctions in your local area through websites providing this kind of information or approach government agencies personally and ask them about the date, time and venue for their next auction.
· Prepare a list of the kind of vehicles that you might want to bid on. It is not necessary that the car you want will turn up at an auction, and therefore having at least four to five choices increases your chance of getting a desired car at an auction. Once your list of cars is ready, find out the approximate prices of these cars from dealers, used car websites and publications that offer such data.
· Most auctions give prospective buyers a chance to inspect vehicles being sold at previews, which are held a day or two before the actual auction. Make it a point to attend the preview and inspect the cars thoroughly. Taking along a mechanic to do this is a good idea since he or she can update you about the actual condition and value of the vehicles that you might be interested in. Take the vehicle identification numbers of the cars that you want to bid on and check their histories through a reputable online vehicle history service.
· Determine and set yourself a maximum bid amount based on all the information that you have gathered about a vehicle and take care not to exceed this amount no matter what. Do not be the first one to bid, since it is a better idea to gauge the audience’s interest in your car before making a bid.