Vehicle auctions are a way to buy cars, or other automobiles that can be convenient for both sellers and buyers. Private vehicle owners do not have to handle communicating with possible purchasers. Things like giving the customer a look and a test drive of the vehicle, along with managing the sale itself are instead taken care of for them. They also have access to a larger potential audience and can quickly make money off a sale. For buyers, there is the potential of finding a lower price for the vehicle that they want. Buyers can examine multiple vehicles from different manufacturers in the same place at the same time. They get maximum possible selection and can have multiple choices in case another car they want is bought.
As a buyer, you will have to do some research before a vehicle auction, as with any other way of buying cars. In addition to being able to research on your own, you are able to visit the auction beforehand to get a look at the cars on sale. In some cases you may even be able to test drive the cars pre-auction. It may be a good idea to bring along a friend or relative who is knowledgeable about cars, if you are not, in order to help you properly analyze each vehicle that you may want to bid on. Of course, you have to be sure that you understand how the whole auction process works, including the bidding.
Before the auction, you should also set a budget for yourself. This budget should be flexible to accommodate possible fees and how high you may bid on a vehicle if the bidding price goes up. The fees may include federal or provincial sales taxes, along with the fee of the auction itself. You should also consider setting some sort of range or margin in case the bidding prices exceeds your preferred amount. Things can get heated during a bidding war and the vehicle you want could be gone in a second while you’re deciding on whether it is too much. Having that set number in mind already will make things easier and smoother.
As a seller, you are required to disclose information about the vehicle. There should be no liens that apply to the vehicle. Liens are essentially interests on vehicles used as collateral for a debt to a bank or financial institution. If the debt is not repaid, the vehicle may be repossessed, even if it has been sold to a new buyer. Sellers may have the option of ‘Absolute Sale’ or ‘Protected Price’. Absolute Sale is when the car is sold to the highest bidder, regardless of what the bid is. This is generally the easiest way to deal with selling a vehicle. Using the Protected Price method allows the seller to set a price based on an appraisal of the vehicle and the car is only sold if the bids match or exceed that price.
Buying a car at an auction can be a potential source of money saved on a major purchase. As a buyer, you will have a wider range of options for potentially less cost. As a seller, you can easily sell your vehicle to a wide audience of buyers. If vehicle auctions interest you, then have a look here at our donated cars page.
