Getting a Deal at an Auto Auction

It's easy to find discounted car bargains at an auto auction. There you'll find everything from luxury automobiles to junk projects. A lot of people buy these vehicles either to drive themselves or to mark up for future sale. But unless you keep some things in mind the auction can turn into a nightmare.

Some of what can go wrong includes buying a bad car. There are lemons at auctions too. Cars sold at such auctions are generally sold according to used car laws which tend to make it an "as is" sale. Remember the old Sesame Street skit in which a man looks over a car with “as is” in the window. The salesman responds “as is” to every question. Finally the man agrees to buy the car, pays for it, but when he opens the door to get into the car it falls to pieces. The unfortunate buyer shouts “I want the car as was!” Nobody wants to become that guy.

Auto auctions generally give potential buyers time to look over the cars. If an auction won't do that, run. Take the time to do some leg work. Test drive the cars you like. If you don't know anything about cars, bring someone who does. If not, then during the test drive bring the car to a mechanic for inspection. A good mechanic can provide a thorough inspection in a short time. Check other elements for damage. This includes the body, upholstery, and bumpers .

Auctions also come with a built in problem. People assume that the auction price will be a great deal, but often it ends up being more expensive than purchasing the item through a normal sales process. That holds true for auto auctions too. The bidding can easily escalate to well over the car's value. There are also fees to pay, so pay close attention. Easily accessible date on car values is standard issue for auction buyers. Phones with Internet access can bring this info to your fingertips while attending. Don't pay more than the car is worth, even if it's a coveted antique.

Remember, auctions can be great deals. But keep your eyes and ears open. An auto auction follows the rule of thumb of every sale, buyer beware.