Auctions: Purchasing Used Cars
May 10 '01 (Updated May 12 '01)
The Bottom Line I think it better to buy from state auctions because they seem to be more reliable.
Are you thinking about purchasing a used car? I have learned to never purchase a used car from a dealer. Why buy from a dealer when you can eliminate the middle man? At state auctions you can find great deals if you are patient.
Not all vehicle auctions are open to the public but rather just open to dealers. Most of the time, state auctions are open to the public and this is when I would go. The first thing you must do is register, usually a few days ahead of time. If you do not plan on bringing cash you must bring in a letter of credit from your bank.
I prefer to buy from state auctions rather than searching in the paper and finding an owner who wants to sell their vehicle outright. I am not a mechanic and would not know if I were getting ripped off. I do not know how well this car had been taken care of or how regularly it had been serviced.
I think I have a better chance at getting a vehicle from the state because they have to get their vehicles serviced on a regular basis. Most of the drivers of these vehicles have to carry a log book and are required to have regular oil changes and such.
I have found these vehicles to be in a lot better shape, especially the interior. Most vehicles seem to have been in smoke free condition and are in excellent shape as far as interior goes. I do not have to spend extra money shampooing out stains that might be in the seats because seems as if these vehicles had only one person in them, the driver.
Drawbacks
In these type auctions you might find great running vehicles such as a Crown Victoria that has a great interior, but might have been recently used police cars or vehicles that are from the DOT and are bright yellow or have logos on them. You might want to check the prices out on a paint job before deciding to purchase from these auctions. Usually if you play your card right it will be well worth your time and well worth the paint job.
What Should I Do Next?
After obtaining a letter of credit and registering for this auction there are a few things that I would recommend doing before the auction actually takes place.
Usually, a few days before the auction the lot is open for public viewing. This is when I would come and view the vehicles. Don't wait until the day of the auction!
Go to the viewing. All the ones I have went to have the keys in the ignition for you to test the engine out. Don't be bashful, check everything. If you know a mechanic, bring him along. I brought my mechanic along with me. He tested the engine and checked all fluids. We checked the conditions of the tires. We looked to see if it had air conditioning, heat, radio, and everything we could think of. We spent over three hours doing research. Don't go into this blindly.
I brought a huge notebook as there was over 400 vehicles to choose from. All of the vehicles had numbers marked on the windows to help with identification. I would go through each of the vehicles that I liked and give them a complete inspection. If they passed the test then I would write the number down in my notebook, the year of the vehicle, and the make. I would then go and get the blue book value of all of these vehicles that I liked and write that down in my notebook. This would give me an idea of the type of money I would need to bring to the auction and it would also tell me what I am willing to spend on this vehicle.
The reason I tell you to go out and view ahead of time is because at the time of the auction people are swarmed around these vehicles. They also take the keys out of the ignitions to prevent people from starting these vehicles up while the auctioneer is trying to conduct business. If you did not get a chance to test the car you liked, it might be to late. At these auctions cars are sold as is with no warranty.
If you are going to take the time to go to the auction I would advice making a rather large list. I saw one Crown Victoria go for $8,000 but by the end of the auction I saw another one in the same year and condition go for only $1000.
Usually, I would not bid on anything until the end of the auction. You will quickly be discouraged as you see many Dealers paying top price and even over book value for the first couple of hours. They don't mind paying more for these vehicles because they can charge twice the price for them when they go to sell them. For an individual like myself who was only looking for my own personal use the bids seemed very high and I started to get discouraged my first few times of going. I went home to early. Wait it out!
I have since learned that it is better for me to wait it out until the end because the dealers usually have purchased all they were going to purchase in the beginning. They are only able to transport so many cars back. Usually by the end of the auction 3/4 if not all of the dealers have left. Most dealers come from out of state and are in a hurry to transport back home.
I have found that waiting brings the bidding down. I have noticed thousands of dollars saved once the dealers have left. You can then start bidding and have a better chance of purchasing these vehicles at rock bottom prices and most of the time well under book value. People don't want to pay more than they have to. Dealers just seem to bid high to get the purchasing done faster.
I hope you find this information helpful. Let me know what you think.
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