There are literally thousands of cars that the government and police confiscate each year. Most of these cars end up for sale in public auctions and get listed by online automotive auctions. Buying your next car at an automotive auction is a great way to save potentially thousands of dollars.
People who might otherwise be unable to afford a car can purchase a good used vehicle from one of these automotive auctions. It is not uncommon to buy a car in great condition with low mileage for 80% or more off the retail value of the vehicle.
Keep in mind that not every car being sold at these automotive auctions is a good deal. You need to arm yourself with the knowledge to identify the really great deals and avoid the lemons. Assume that your competition has done their homework so you need to do yours.
When setting your goal price from a car that you want to bid on, be sure to add in any buyers premiums or other hidden fees that might be required of the winning bidder. Understand the auction rules before bidding on a vehicle or you could end up spending more than you intended.
A buyer’s premium varies depending on the auction and on the car. It is normal that buyer’s premium in seized automotive auctions be 5% of the winning bid but at times it reaches 10%. So you need to find out before the bidding war begins just how much the buyer’s premium will be.
And don’t forget your little black book when you head off to your local automotive auction to bid on your dream car. You need to understand how mileage, condition and model options affect price. Great resources for this purpose are Edmunds Used Car Prices and Kelley Blue Book.
When you need a quick answer about a particular vehicle coming up for bid, use these resources to gain the confidence needed to make sound decisions quickly. They will provide pricing information on makes, models, options and condition.
Also remember when attending an automotive auction that is common practice nowadays to show a bank draft in addition to having a certified check. Also, show up at the auction early. Not only will you be able to examine the cars before the bidding begins but you will also have time to consider your options. Your patience will pay great dividends in the end.