I bought and sold over 500 vehicles of different cars at auction since 2002. auctions police auctions Bank board and the State and Local Government auctions are all fantastic places to buy cars at wholesale prices. Like anything, however, not all cars at these auctions is a winner waiting to be bought for pennies on the dollar. Find the best deals at the best auctions takes a little research. But the fact remains, you will never find a better price on a used car anywhere else.
Why these auctions an ideal place to buy a car?
The main reason, of course, is price. It is very common for vehicles to 50% below retail. Especially, given the state of the economy, people want to buy reliable, fuel efficient cars at unbeatable prices. If you can be part of the work to acquire these cars at auction. . . you can quickly begin to make a very good income for a few hours of work per month.
The other great attraction of auctions of cars is that there is no arguing with the dealer. Used car dealers are known to do anything to sell a car. They have that reputation for a reason. By buying at auction, you do not have to worry about haggling over prices or have a salesman follow you around the car park.
Despite the obvious advantage of buying at auction, I am amazed how many people stay away because they think that the vehicles are in poor condition or there is a big “secret” to looking for these auctions.
These are the two largest and most expensive myths about auctions cars. . . .
Firstly, there junky cars at these auctions? Yes. But there great cars in very good condition? Absolutely.
Over the years I have bought many low-mileage car that were seized in excellent condition. They were seized from a drug dealer (or any type of criminal) by the police and auctioned to help the revival of local government money. I also found many bargains in the auction of the Bank-repo. great cars in very good condition that were simply taken by the bank because the person did not make their payments. . . . and I was there to enjoy a variety. I bought a lot of luxury cars of both types of auctions (especially BMW) because criminals tend to drive nice cars and cars bank repo that someone thought they could permit, but really could not.
Another great source of what I would call more “functional” vehicles are government agency auctions. Many state and local agencies are constantly buying new vehicles for their fleets and sell the old. police, but not only, the environment, Department of Transportation, municipal inspectors, etc. all drive government owned car. They are traditionally very well supported (they are required by law) and have relatively low mileage. These make great resales because they’re cheap, reliable cars and people (especially in this economy of gasoline prices) are always looking for such cars.
How do you find good deals at these auctions?
Many people are still afraid auctions because they think they ought to be a mechanic to be able to separate the good cars and lemons. “I confess, I fell into this group when I ‘I began. At almost every auction, you can inspect the cars before making a bid. Although you will not be able to take a test drive, many still come with a manufacturer’s warranty. I bought a lot “government” of the car without even seeing them because they are still in such good condition. But here’s a quick checklist that I recommend for anyone just starting – this will help you avoid getting a Lemon:
1. If possible, start the engine and wait for something unusual (or to see if it starts at all). Note most auction sites will sell these cars “as is”. If you are able to get a look at the car while the engine is running, you will be able to say much about what state it is in. Check the exhaust gas to s’ sure it is clean, check air conditioning, heat and all the power options (windows, seats, sunroof, etc..)
2. Check for water damage under the seats, floor carpet in the trunk.
3. Lift the hood and check the oil. Check the white bubbles on the dipstick (this means that water could the oil tank) and see if there are grains (sand or sediments). If looks pasty oil and think it is likely that the vehicle has not been regularly maintained. They are not necessarily deal breakers but I adjust my bid accordingly.
4. Check the transmission fluid too – you’ll want to see who it is clean and not black or sticky. Watch the excessive exhaust soot.
5. Check out also. It’s easy and you are really looking for what condition it is in. Is there rust? If yes how? Look for paint bubbles or welding marks. Also, keep an eye on slightly different shades of paint, rough surfaces or body panels out of alignment. Also, make sure and check the engine compartment for new bolts or bolts which do not match the color.
As you feel more comfortable with buying auction cars you will learn what is a dealbreaker “and what is not. As I said, unless a government car looks really bad in the picture, I’ll make an offer without even looking. Even if a car I just bought needs a tuneup, new brake pads or an alignment, I keep this in mind when I’m bidding. If I can save $ 2,000 on a resale, I am happy to spend another $ 300 – $ 400 for the format. You always get a great cause of the purchase price.
I also recommend (especially as you begin) Get a CarFax or AutoCheck vehicle history report. These are economic means to obtain much information about the car you are interested in.
When I started, I had an AutoCheck report for every vehicle I am interested in and it gave me more than enough information to make an informed decision.
Even if you do end up getting a lemon. . . i. e. you do not receive a AutoCheck and bought Sight Unseen and it needs a new transmission you do not want to spend money on? Then, you can always sell it to the next auction. Someone will always want to buy it and fix it. . .
How do you know what it offers?
Before bidding on any car you should know the comps “or resale values. Look at Kelly Blue Book, Edmunds. Com, NADguides, prices MMR (see our website for more details) and, of course, eBay Motors and Autotrader. com. Look for similar cars with similar mileage and establish a price range. The lower end of that range, it offers price target.
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If the tender is too high just walk. . . I remember something an experienced auto dealer told me to my second auction when I was prepared for a BMW I was bidding on. “Do not kid excited … In this game, you always have another “at bat”. What he said is: do not overspend on a car because there is always another deal out there. I ended up leaving BMW to someone else but I’m another one week later for thousands less. I always try to remember that bit of advice.
How do you find these auctions?
Many of these auctions may be difficult to find. Only very recently have they started advertising online but most sites have had for years. The result is. . . a simple “Google search” will not turn anything.
You can always find local auctions in the document that is a good place to start. I spent years drawing up a list of these auctions by state which is another good resource to save you much time and money. Visit my site for more.
Ultimately. You can not afford not to look at Car Auctions.
I was surprised at some of the cases I have found over the years at these auctions. That was enough to overcome my day job and for much less work. Even if you are interested in buying a car just for you, you can not afford not to look at an auction of cars. So what are you waiting for?!
Chris Chamberlain started going to Car Auctions in 2002 in hopes of getting a good deal on a car for himself. Several years and hundreds are cars later, he made a small fortune flipping cars. officialgovernmentgrants officialgovernmentgrants Check . officialgovernmentgrants. Com to learn more about this river and its other income.
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