Auctions can be a fun and exciting way to find some bargain wheels, but there are both pro’s and con’s to buying cars at vehicle auctions. Before you rush to the hammer, be sure to take these pro’s and con’s into consideration to decide whether or not vehicle auctions are the right car purchasing options for you.
Particularly in today’s unstable financial climate, there are in increasing amount of cars available on auction. Auctioned cars are cars that need to be sold quickly, and have often been repossesses by the bank. Repossessed cars make for good buys because the bank wants to sell the car quickly to recover any losses rather than make a profit on the sale of the car. Regular vehicle auctions are held in all major cities weekly or bi-weekly.
Pro’s of buying cars at vehicle auctions
- Cars selling on auction can be cheaper than cars bought privately or from a car dealer, often because the car needs to be sold quickly. This means that the car can sell at a lower price than similar models being sold conventionally.
- If you use a reputable auction house, they will ensure that the car is functional and of high quality, or they will state otherwise.
- Even the best models and brands can sell for reasonable prices.
- Vehicle auctions are a good place to look for vintage cars or collector’s items.
- Buying on auction can be an exhilarating experience as you battle it out to land the wheels you have your eye on.
- It is often easier to get vehicle finance for repossessed cars sold on auction as banks want to sell them off as soon as possible.
- Buying cheap cars on auction can be a good investment opportunity. If any repairs are needed, you could do these fixes yourself before selling the car at a higher price and making a profit.
Con’s of buying cars at vehicle auctions
- The reason many of the cars are cheaper is that they have been repossessed. This means that the car has been used and you may even be the third or fourth owner of the car.
- Cars on auction many not necessarily be in good mechanical condition. You can’t judge a car by its paint job; and just because it looks good on the outside it doesn’t mean that all is well under the hood.
- You are not usually allowed to test drive vehicles that are up for auction. This means you don’t get a chance to see how you feel in the car and how well it drives. Without conducting a proper inspection of the vehicle, you may miss out on some flaws and damages that will only appear later.
- Most cars that are auctioned off do not have insurance coverage or warranties. You may also not be made draw of the service history and accident history of the vehicle.
- On auction there is greater possibility of buying an illegal vehicle than there would be at an accredited dealer. You may encounter future problems with ownership if the vehicle is not properly registered.
There are a number of both pro’s and con’s to buying cars at vehicle auctions, so it is up to you to assess each unique auction situation and decide whether buying on auction is the right decision for you. It is also worthwhile contacting people you know who have bought a car on auction to learn about their experiences and get some valuable advice.
Ultimately, buying cars on auction can be a gamble where you have to weigh up the low price versus the possible problems with the vehicle. Just keep your wits about you, do all the necessary research, and examine the vehicle as best you can. Coming away with a good deal is very rewarding and you may be bitten by the auction bug for good.