Car auction industry has existed for years to cater on the needs of the market that cannot afford to buy the brand new one. Every day there are thousands of car being sold in different auction sites worldwide. Variety of used cars are being trade in these sites from a classic vintage car to the not so latest luxury one. Indeed, these cars might be considered already as a trash from its previous users, but someone else’s trash might be a jewel to another.
There are lots of organizations who organize live car auctions. Usually, car dealers initiates auctions for them to sell of used cars which are repossessed from a delinquent creditor. Repossessed cars ranges from a brand new look to the most cannibalized one. Likewise, special checking must be done to a potential auctioneer before getting involved with the bidding. While car dealers initiates auctions to recover from a financial loss due to an irresponsible tax payer, the government also initiate its own auction to sell cars which are either seized from an evading taxpayer, or disposing the idled one, or from a busted criminal. These cars are sold by the government through live auto action, to get rid of large inventory and at the same time to minimize the required space for it to be kept. Not only that, government can benefit from the revenues the auction will generate. It does not cost too much from the government. The only cost which may be encountered is the advertisement or the fees for broadcasting car auction site which is only minimal as compared to the non-government. Live auto action can be considered a cash cow for the government.
For newbies in this industry, it is imperative to know the mechanics of how live auto action really works. Knowing the processes of auto auction would gain one bidder the edge to get the best deal in the event. Getting the best deal is not that easy until you know the basics and the way to play the whole game of auction.
The first thing an auctioneer must do is look for some live auto auction sites. Live auto actions are usually published in the print medias. There are also lots of announced auction sites printed in car enthusiasts’ magazine. These magazines usually feature cars to be auctioned and at the same time review its saleability to the auctioneers. This results to price trending which is usually a point of advantage to the trade in seller.
In order for a bidder to participate in the live auto action, one must be able to register to the nearest secretariat of the initiating auction organizer. Priority numbers will be given to the first registrant of the affair. There are live auto auction that limits the number of registrant in an affair. Likewise, it is better for a potential bidder to be an early registrant just like an early bird may catch the best worm available. It is also true in live auto auction. Being the first is always an advantage.
Live auto auctions usually hold previewing of cars to be sold on the auction day. Previewing is usually held a day before the scheduled live auto action. On this day, bidders can gain access to the auction site and are free to view all the displayed cars for auction. There are also auctions which published their auctioned car in a magazine. These auction initiators usually send the catalog to potential bidders before the day of live auto auction. Catalog cards includes the auction form which must filled up the bidder and submitted to the auction secretariat prior to the auction day. In this way, information of the buyers will be made known thus price ceiling will be established.
One of the important things bidders will consider is the Conditions of Sale. Conditions of Sale are usually included in the catalogs that is given to the bidders. It contains conditions of the bidding process as well as the terms that a bidder will encounter. Here, bidders must check for words like “As Is” basis. Usually, “As Is” basis is disadvantageous to the bidders. This clause waives the seller any liabilities arising from the auctioned cars. While most sellers go on with this term, it is important for a the winning bidder to make necessary inspection before fully accepting the won item.
It is also important to know more on the cost if one wishes to engage in live auto auction. First, bidders must be aware of the buyer’s fee. This is the fee the winning bidder will pay to the auction organizers. This fee is the source of the revenue of auction organizers. The buyer’s fee is usually pegged at 10% of the winning bid price. Secondly, corresponding tax value is also boar to the winning bidder. Likewise, tax is one of the inevitable things and live auto auction is not an exemption. And lastly, the winning bid price which is the principal cost of the transaction. Total payment is usually the requisite before a car will be released to the buyer.
It is important to go over the rules and regulation of live auto auction before one will join it. Knowing this beforehand will always be a great advantage to him.