CAR AUCTIONS - GOOD OR BAD?

Although there are some very good deals to be hadbecause it's a totally different buying experience.
at car auctions, there is also some things that youWhen you have the opportunity to buy cars at trade
must know and do if you are attending an auctionprices, your imagination starts running wild as to how
for the first time because when you are unfamiliarcheap this car is, or much money you can earn from
how an auction operates you can make a fewthis even if you had no intention of selling cars for a
mistakes that can be very costly, but armed withprofit. This happens with everyone it is basic human
some foreknowledge and providing you follow it -nature.
you should be okay.So the car that you had in mind when you start
Most people's experience of buying a car normallyseeing the other bargains to be had at the auction
goes like this:- See the car they like in the local paper,can very quickly change along with your priorities.
go round the seller's house, view the car and thenCoupled with the fact there is so much choice and
negotiate the price by starting at asking price andnot just one car to look at, which when you go to
then trying to bring the seller down to the price youlook at a car that was advertised in the paper you
want to pay.only turn up to view that particular one.
With this way of buying, you can take your time,At car auctions there are absolutely hundreds to
take a test drive, and think about how much youchoose from. So if your 'ideal' car is not there, there
want to pay and if the deal does not suit you, youis always another car that maybe you didn't really
can go away and think about it.want can catch your eye and there is nothing like a
Buying a car from auction is a totally differentcheap price of a car to focus the attention of the
experience.mind.
The scenario at the car auction is far different, andChecklist
this is what puts a lot of people off from buying aYou will need to inspect any car you are interested in
car this way, but if you are armed with a checklistlong before the car goes in the auction to be sold.
and knowledge of what to do, you can certainlyWhen you find a car that is suitable go through this
swing things in your favour.checklist.
Attending The AuctionIt's very important to examine the car while the car
I'll assume that this is your first auction that you willis parked up, because it will be a little more difficult
be attending. If you are an experienced auctionwhen the car is lining up to be sold and then
visitor, then it won't do any harm just to go overeverybody else will be looking. Best to check round
points that you already know.the car when it's not too busy. Hence the purpose of
The first place to look for at the auction is the officegetting to the auction early.
where the entries for the vehicles are accepted. HereHave a quick look around the car just to check for
there should be displayed the conditions of sale ofany accident damage to the bodywork like panels
the cars that are entered into the auction.having any dents or bumpers if they are plastic being
Amongst the general auction rules there will becracked etc.
information about how the cars are offered for sale.Have a look on the windscreen for any chips or
These are as follows:cracks as this can be an expensive item to replace.
1. SOLD 'AS SEEN'Then have a look on the windscreen and the car
This means exactly what it says, what you see isshould have a windscreen ticket displayed that should
what you get. Any vehicle that is offered for saletell you all the details of the car. Please read through
sold 'as seen' cannot be rejected under anythis information slowly and carefully noting down any
circumstances. Any complaint about a problem thatdetails about the car you need to know.
the car may have will not be entertained at all.NOTE: If you are unhappy with any of the above,
This may seem a bit harsh from the buyers' point ofdon't buy it. Simple as that. Just find another car
view, but don't let this put you off buying a car thatthere are plenty more to choose from. Don't let your
is sold 'as seen'.heart rule your head.
2. SOLD 'WITH TRIAL'After you have read the windscreen ticket, and if
This can vary from auction to auction, so it'syou are still interested in the car, examine the car a
important that you check with the auction staff tolittle more closely this time particularly looking at
verify what their conditions are but basically sold 'withthings that might need replacing and add cost to your
trial' means:purchase price after you have bought the car.
That you get one hour after the end of the sale toBear in mind that mechanical repairs can in some
return the car if you find any 'MAJOR MECHANICALcases be carried out fairly cheaply these days, but
FAULTS', i.e. engine, gearbox, axles, steering rack etc.bodywork repairs can be very expensive and this
Some auctions conditions differ from auction toshould be reflected in the price of the car.
another so that is why it's imperative that you checkVisual Checks
with the auction staff before bidding on any vehicle.Things like tyres. Tyres can be very costly these
INDEMNITY FEESdays to replace, especially low-profile or sports tyres.
This is a fee that you will pay on top of theIf the tyres look like they are going to need changing
purchase price of any car that you may buy.in the near future adjust your bid accordingly with
Probably better known as a 'buyers premium'.this in mind.
Fees vary a great deal from auction to auction.Does the overall condition of the car match up with
Check with the auction staff as to what these feesthe mileage? Not just outside but also inside as well.
are if they are not displayed in the office area orIf the windscreen ticket says that the car has
around the auction.covered low or average mileage for the year, have a
These fees should also include an 'HPI' check on thegood look at the condition of the seats especially the
car you are buying. This will give you full legal title todrivers seat, is it worn or does it match up with the
the car. The 'HPI' check covers items such as:a)mileage and condition of the car.
Whether the car has any outstanding finance on it.b)The steering wheel. Is it all smooth or does it still look
If the car is on the police stolen list.c) If the car hasnew?
ever been an insurance 'total loss'.d) Whether the carAll these things are a visual check that you can carry
has had a number plate transfer.e) Will also confirmout on the car and give you a better chance of
the 'VIN' (chassis) number.buying a good car and eliminate some of the risks
When I first started to visit car auctions I went alongthat are there and swing things in your favour.
to them for about 3 months before I bought myBidding For Your Car
first car. The reason for this was because I wantedWhen the time arrives for the car you are interested
to go into car dealing as a business and I decided toin to go into the auction, stand in a place where the
carry some research before I actually committedauctioneer can see you clearly but not in a place
myself.where you can be seen by everybody else, i.e. right
I would not under any circumstances take anyin front of the rostrum.
money with me to buy a car with, just enough toAll the inspection, the visual and mechanical checks on
get there and back and for a cup of tea and athe car should have been done by now, so you
sandwich, and sometimes that can come to a fewknow exactly how much you're maximum bid is going
quid depending on which auction you go to.to be.
I did this because when I saw how cheap some ofMake sure you know how much buyers premium will
the cars went for, Iimmediately wanted to startbe added to the purchase price, also if the car needs
buying anything and everything, but this would haveanything replaced and keep a note of this in front of
been a mistake.you when bidding.
So I sat at every auction I attended with myBelieve me (i'm a car dealer), you need to have all
notepad and pen taking down the details of nearlythe finances work out before you put in your first
every car that came through the auction and I wasbid. If you don't you could end up paying too much
surprised at the prices the cars were making.for the car.
From there I would go home and compare the pricesDO NOT under any circumstances pay more than the
in car magazines and the local paper and I could seefigure you have in mind. If you end up not buying the
immediately how much profit people were making bycar, another one will always be available. Even if you
selling cars.don't buy a car at the same auction, wait until the
The Day I Bought My First Car At Auctioncar you want turns up, and it will.
I decided to take the plunge and armed with all myPaying For Your Car
knowledge and statistics of the previous 3 monthsIf you are the highest bidder you will have to pay a
research, I purchased one evening at a car auction indeposit immediately after the bidding stops.
Essex, a Rover SDI 2600, X registration, for the sumIf you after bidding end up having the highest bid on
of £500 which at the time was quite a nice carthe car, you will either end up reaching the reserve
and not too difficult to get rid of.price that the seller wants and the auctioneer will
You know there is something else coming up don'tnormally bring the hammer down to indicate that you
you? You can just feel it in the air. So let me tell youare the successful buyer.
the result of my purchase.If the reserve price is not reached, then you will still
I picked the car up a week later because I paid bybe required to give your details and a deposit to the
cheque and had to wait a week for the cheque toauction staff. This will be called a 'provisional' bid.
clear. I got a few miles down the road and I noticedWhat will then happen is the auction will contact the
the engine started to heat up very quickly which isowner of the car and will try to negotiate a price on
not a good sign.the car. If the seller will not lower their reserve price
To cut a long story short I have the car transportedand an agreement cannot be reached, then your
home and have to sell the car to a dealer out of thedeposit will be returned to you.
local paper who pays me £200 for the car.In Conclusion
First deal - Loss of £300!!I am sure that you will find the car auctions that you
As i mentioned earlier you can take your time whenvisit a totally new experience of buying a car, and
buying a car the normal way but these methods goone that you will enjoy.
right out the window when buying a car by auctionMay I wish you all the best in your endeavours.