Buying A Car At An Online Auto Auction
By: Andrew Bicknell
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For those that don't know auto auctions are the quickest and easiest ways for banks and government agencies to get rid of seized and repossessed vehicles. These auctions can be found all over the United States and can occur daily, weekly, and monthly and are a good place to find the automobile you've been searching for at a significant savings.
Here are six quick reasons why buying a car at an auction can be a good idea.
1. When you find a good auction site you will have piece of mind knowing they stake their reputation on providing a good experience.
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2. Seized auto auctions can be a lot of fun. The sheer volume of vehicles to choose from can be quite an experience.
3. It can help you keep your budget intact when it comes to buying a new/used car.
4. You can set a maximum bid level that keeps you from overbidding and letting your emotions get the best of you.
5. You can save time and effort by not having to visit high pressure dealerships or driving from private sale to private sale hoping to find the car you are looking for.
6. Seized auto auctions are a great place to get great bargains on just about any type of vehicle. If you are interested in a high end vehicle, but don't care for the retail price tag, then government seized auto auctions are great for you.
As you probably already know, car dealers will do anything to get you into the car of your dreams. Dealers attend these private auctions to buy cars at a fraction of their retail value and subsequently turn them around, increase the price, and sell them to you at a dealership at a huge profit. Just think how much you could save if you bypassed your dealership and purchased directly from their sources. Car dealers know this, and they go to great lengths to protect this knowledge from the general public.
When you start bidding remember to stick with your plan, bid with your brain and don't let your emotions get the better of you. Don't get caught in a bidding war because one thing you have to keep in mind is the buyer's premium. This is usually in the 5% range and is a commission that is paid to the auction house on top of the winning bid on the vehicle. This means if you place a winning bid of say $20,000 you will pay an additional $1,000 to the auction house for their services. This can be a problem if you didn't take that into account when you got caught up in a bidding frenzy in which you used every last dollar you had. Use your head and you'll do fine.
Online auto auctions are a great place to find the car or truck you have been looking for at a rather large discount. By doing your research and bidding smartly you can save hundreds or even thousands of dollars on great cars.
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