 |
You are shopping for a used car but your bank account could hardly afford the ones that are up for sale. What are you going to do? You decide to be saddened
until the right opportunity for a used car auction sale right for you. Lucky for you, the ones on display would now fit your budget. Let's take one step at a
time though, before you plunge into the auction deal, allow us to give you some pointers that would help you get the best used car deal for your money.
The first piece of advice to give is to shop accordingly to the type of vehicle you may need (a car, a truck or an SUV), along with its model year and also your
color preference. Before you find an auction that's right for you, do as much research you can on the vehicle as possible. It is also important to check the price
range of the car you want. Prices are usually available through the Galves pricing handbook where prices are adjusted every month. You
should also establish contacts with any used car dealers that are joining the auction sale, or just observe them keenly on how they operate.
Avoid the small auction sales because cars are priced three times higher there, than at those large auction sales. Likewise, there are auction sales exclusively for
licensed dealers that only deal with pre-inspecteds cars, while other auction sales are open to the public. Most used cars are sold on an "as is" basis, so it would
be wise to bring along a specialist that could advise you on the condition of the engine, the mechanical parts, or even the condition of the body paint. If you are
well equipped, you shouldn't have to fear that you will over pay for a car that underperforms.
A buyer should also take note, that cars sold in auction houses do not provide warranties, unlike in dealerships, where the consumers are protected by the Federal
Trade Commission (FTC), where warranty stickers are attached on the windshield of used cars for sale. Check with the National Highway Traffic Safety Administration
if the car you are bidding for has a safety recall.
A lot of factors influence the selling price of a car. For most, the largest factor is the amount of miles driven. A lower mileage reading gives the car a higher
price, compared to the same make and model with a higher mileage. Other factors include its features and overall condition and also the demand for the model. The
law of supply and demand is also a measure of used car prices. If the demand for new cars is high, then used car supply is also high due to trade-ins. As expected,
the prices for used cars go down because of oversupply. However you should always expect used car prices to rise with the shift in supply and demand coefficients.
Once your bid for the car is accepted by the auctioneer, payment in cash is expected. Should you fail on your commitment, the deposit is forfeited in favor of the
auction house. The normal deposit is around $500 and most auction houses demand full payment only when the necessary papers have been complied with.
Be aware that all bids are deemed final. The auction house is given the option to sue you should you decide not to proceed with the purchase. Again the decision rests
on you, so follow proper protocol during the auction sale.
