The used car market is booming, with some dealerships experiencing the fastest turnover of used vehicles in the past six years. A global parts shortage on new models has meant many people have turned to second-hand cars for transport. But do you know how to get get the best deals?
One way is with online property auctions. Read on for our guide on how to buy from an online car auction.
Why Would a Car Go to an Auction?
There are several reasons cars would go to an online car auction. You may also be surprised to find that many high-quality cars end up there. It is not just ones that are fit for scrap.
- Remained at a dealership for a long time
- Traded in for a newer vehicle
- Has had accidental damage
Weather and environmentally damaged vehicles can only sell at specialized auctions. Specialized auctions are on the auction website and have specific rules and regulations.
Online Car Auction Tips
Preparation is critical for online car auction success. Some of the most important tips are listed below.
Do Your Research
When you take part in a standard auction, you have a chance to check the car in person. You can’t inspect the vehicle when doing an online auction, so you must know what you are buying.
Begin by checking out the car. Research the make and model, deciding if it is right for you. From here, you can look for any issues or common faults that may occur with the car.
Read the information provided by the used car online auction house thoroughly. If there are any issues or sections you don’t understand, then message them for clarification.
Stick to a Budget
Auctions are exciting places, and it is easy to get carried away. Make sure you have a budget and stick to it. If not, you can find yourself overbidding and could end up paying more than you can afford.
As well as your budget, make sure you include the auction fees. These auction fees appear in the documentation provided by the auction house.
It would be best to think about how the car fits into your household budget. Make sure insurance is affordable, along with road tax and fuel consumption.
If you go to an auction with one particular vehicle in mind, you may end up disappointed. The bidding on the car you want may go beyond your budget.
Go to auctions with a few possible vehicles in mind to avoid this. Having a backup plan will also help you get a better deal as you can drop out of auctions that are high priced and explore other options.
How to Buy From an Online Car Auction
Once you have registered for the auction, you can start bidding. Each auction house will work differently. Some may show pictures of the vehicles and allow you to place bids over a while. Others may live stream the auction as it happens as if you were in the room.
In both instances, there are points you should know. The most important ones are below.
Check the Auction Rules
Each online auction will provide its own set of rules. At the least, you will have to register online and give some identification.
The most important task is to read the payment terms. Some may only take payments in a specific form. You may also have a certain amount of time you need to pay.
The final cost also includes taxes and fees. You should be aware of these and include them in your budget.
Some online auction houses allow you to observe without being a registered bidder. Watching is a great help, as it shows you how the auction works and how bidding occurs.
Some online auctions can have hundreds of cars, and bidding can be over in a few minutes. With this speed, it helps to know the process before you begin.
Take Your Time
When it comes to a used car online auction, it helps to take your time. Going right into the bidding can cause it to rise unnecessarily. You will get plenty of notice to place your bid.
Most activity occurs in the closing moments. In these instances, you may get a text or email from the auction house so you can join in and prevent missing out.
If you have to leave the auction, you may put in a bid in advance. An advanced bid is a statement of the most you want to pay. The system will then bid on your behalf, stopping when the price exceeds your limit.
Do I Need an Auction License?
Needing an auction license depends on the type of auction you are attending. Traders use special dealer auctions to buy cars for their lot. If you attend one of these, you may be required to have an auction license and provide proof of it.
If the auction is public, then you don’t need any license. For many of these, you need to register and may have to pay a fee or deposit.
Your First Online Car Auction
Now you know how to operate at an online car auction, try searching online for auction houses. They will have details of current and upcoming auctions. Do your research, sign up and try to watch an auction before you start bidding.
Do you need more information about online car auctions? Make sure to check out the rest of our page for the latest.