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Sold!
buy a vehicle at an auction – the smart way

Almost everyone knows someone who got a bargain at a car auction. So why don’t more people take advantage of them?

For the most part, fear of the unknown keeps us from car auctions. But if you have a good working knowledge of car mechanics, understand how auctions work and are willing to walk away empty handed a few times before you score your dream wheels, buying a seized or repossessed vehicle at auction is ideal for you.

The ultimate draw is that some auctioned cars sell for as little as 10% of their full retail price. Yet before you rush to the lot for your bargain, take some time to prepare by reviewing these important tips:

  • Know the accepted payment methods at the auction before you begin.
  • Be sure you have enough money to cover your winning bid.
  • Stick to your budget, knowing exactly what your maximum bid will be. Then don’t go over it!
  • Understand the concept of the buyer’s premium. The auction company adds on this fee of between a few hundred dollars and up to 10% of the winning bid price. Calculate it in when you’re determining your maximum bid.
  • Research prices on the used vehicles you’re interested in. Use online tools and your local newspaper.
  • View the car before the auction starts and have a few backup vehicles in mind in case you get outbid on your number one choice.
  • Inspect every car you may bid on. Open every door, look in the trunk, look under the hood. Look for signs of previous accidents, repairs and stripping.
  • Compare the Vehicle Identification Number plates and etchings and be sure every VIN matches. Walk away from any car that doesn’t have matching VINs as it may have been stolen, stripped or otherwise compromised.
  • If you have time, call a friend or family member and have them run the VIN through AutoCheck or similar companies to research the service history of the car.
  • Carefully review the terms and conditions of the auction contract before you bid. Ask if you’ll get the title when you drive off the lot. If not:
    • do you still have to pay in full?
    • how long will it take to get it?
    • what course of action can you take if the title is delayed?

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