How to Get the Best Deal on a New Car When Buying at Auction

Here’s, How to Get the Best Deal on a New Car When Buying at Auction

Reproduction in whole or part without written permission is prohibited. Andrew Kaczmarek is a nationally published writer and consumer advocate specializing in automotive matters, his articles have been reprinted on numerous other commercial websites and he has also been quoted for expertise in numerous print media publications around the country including Better Homes & Gardens, CNET Australia, AOL Autos, Benzinga, Motley Fool, etc., etc.. Please note that the author resides in California, therefore this article focuses on laws that apply to car buyers residing within the State of California.

The terms “dealer”, “salesman”, and “repo” might be the first few words to come to mind when considering buying a car at auction. Usually, when someone thinks of auctions they envision cars being sold by uninterested men in cheap suits with an ever-present cigar lodged firmly in their mouths. While, this stereotype might hold true for some dealerships, not all are like that. It is becoming more common every day for reputable dealerships to purchase vehicles at auction in order to offer them to their customers at lower prices than what would normally be available.

Car shoppers who have never considered buying a vehicle through an auction should definitely give it careful consideration before making any final decision on where to buy their next vehicle (or when the time comes to sell their current one).

So, if you’re in the market for a new ride and thinking about buying at auction, here are some useful tips that will help you get the best deal possible.

1. Before bidding on any vehicle it is absolutely necessary for you to make sure that your car loan has already been approved. It doesn’t matter whether you plan on paying cash or taking out a loan; if there is no money available to borrow then there’s no way that you can buy! This might seem like an obvious thing to do but it, unfortunately, happens all too often because people skip this important step and end up losing out on great deals because they can’t lowball with cash (and yes, even auctions allow for people to lowball or make offers on vehicles).

2. It is very important that you only bid on vehicles that are currently in good condition and will not require extensive repairs within the near future (i.e. over the next couple of months). These issues should be thoroughly inspect by an experience mechanic, such as one from Your Mechanic, before making any bids on a vehicle.

3. When it comes to buying at auction there’s always going to be a chance that you’re going to end up with a lemon; sometimes accidents happen and cars end up being completely totaled during transport (it does happen, although this would likely apply towards online auctions rather than ones set-up by dealerships). Therefore, it is extremely important for you to be in constant communication with your insurance adjuster in order to find out what the next steps are in regards to your claim and how much it will cost you in order for them to repair your car.

4. Just because a vehicle is being sold at auction doesn’t mean. That mechanics who work on the lot don’t have the authority to negotiate its selling price (at least not all of them). It could potentially save you hundreds or even thousands of dollars. If you get a mechanic working on the dealership’s lot involved. When it comes down bidding time, so why not give it a shot?

5. If there ever was such thing as “auction fever”. Then this would undoubtedly be its most fatal symptom. People tend to lose their common sense. When they start catching up in the heat of an auction battle. The car being sell at auction could be a vehicle that’s been through hell and back. Regardless of whether you think it looks great or not. But it is important to remain level headed. If you want to come out with all your hair still attached to your head.

6. Negotiating “extras”, such as extended warranties or service agreements are perfectly acceptable at auctions. In fact, dealerships often make this their primary method of garnering extra income.

7. It might sound strange but there are likely going to be several people who’ll feel inclined. To tell you that conducting business at an auto auction guarantees them a significant amount of money. Regardless of how fast they can sell the merchandise. This may be true for some, but the sad truth is that there are just as many dealerships. That end up taking a loss on certain lots. Because of inexperienced bidders who have no idea what they’re actually doing.

Conclusion:

Although conducting business at an auto auction can help you save a great deal of money. It is absolutely vital that you understand the basic dos and don’ts when it comes to buying vehicles.