Car auctions are getting to be extremely popular as places for picking up used cars at low prices. But unlike new cars that come with an MSRP, there is never any set price for used cars and while it is possible to get good bargains on used cars, there is an equal probability of getting a bad deal where you end up paying more than a car’s market value. However, our tips here will help you in estimating an auction car’s real worth well and saving money at car auctions:
Do Your Research Well: In most cases, the difference between a good and a bad deal at an auction lies in the amount of homework that a buyer has done or not done. Once you have decided about the kinds of makes and models that you are looking at, you should definitely know basics like actual market price for new vehicles, any inherent problems that a vehicle comes with and advantages that it has over other similar vehicles because this is where your bargaining power is going to come from. Since auctions do not allow test drives, it is advised that you test drive any vehicles that you are considering at a dealer’s first.
Carry The Bible: Whenever you are going to an auction, online or offline, it is necessary that you check the market value of used cars through used car price bibles like the Kelley Blue Book, the Edmunds Guide or the NADA Guide. These books will let you know the actual market value of all makes and models after a certain number of years and this is what you should use as a base price for your bid instead of going along with the opening bid even if it is on the higher side. Make deductions for any problems or repairs that you will have to pay for from the guide price.
Run A VIN Check: Running a VIN history check can throw up information that can greatly depreciate the price of a vehicle. You might come across things like odometer tampering, accident or natural calamity damage and branded titles, all of which can undermine the price of a used car considerably.
Set A Max Bidding Price For Yourself: Based on a vehicle’s history check report, its physical condition and the going market price, set yourself a maximum bid amount for every vehicle that you plan to bid on. Remember that you will also be required to pay a buyer’s premium of five to ten per cent if you win the bid, and make sure that your total cost, including the buyer’s premium does not exceed more than 90% of the vehicle’s actual market value. If you pay anything more than this, then you are really not getting a deal at all. Make it a point not to exceed your set bid amount at any cost and you will never regret paying more than a vehicle’s worth.