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photo credit: dmytrok

You have probably heard of people buying cars at government auctions for amazingly low prices. Even on nice cars, the bids start very low – often in the hundreds of dollars. People really do buy nice cars for very low prices, because the government, whether a local police department or a national agency like the DEA, wants to unload these cars to avoid having to pay for storage and maintenance for them. Seasoned car dealers often buy cars at these auctions, and for obvious reasons, they keep quiet about this great source of good pre-owned cars. But in many cases, you can bid on cars too, whether online or at a live auction.

You may have thought about buying a car at an auction, but were turned off by some of the disadvantages. But think again: there has never been a better time to buy at an auction, not just because of the enormous selection of cars, but also because of the wealth of information you can gain beforehand to ready yourself for the process. Here are three common concerns about car auctions and why you should consider an auction anyway.

1.    Cars are sold “as is.” While there may be a three month guarantee that a car runs, you can’t exactly exchange it or return it for a refund. That means you have to be sure up front that you won’t be wasting money on a defective vehicle. Here’s how to do that: get a CarFax or other history of the car beforehand. At a live auction, give the vehicle as detailed a vehicle inspection as you can. If you can bring a mechanic, or even someone you know who works on their own car, that’s even better because they will know what things to look for, like signs of flooding or water damage. And you can always copy the VIN and have someone at home ready to get a history report on the car for you.

2.    Live auctions can be intimidating for beginners. It may be hard for you to keep up with the auction pace. There are several ways you can address this. You could attend a couple of auctions just to watch, so you can get a feel of the pace and watch what car dealers do when they bid. Some online informational sites have free material to educate you on how to participate in live auctions. And if you’re sure that a live auction just isn’t for you, there are many online auctions in which you can bid.

3.    Time and sales pressure discourage you from trying. There is a lot involved in successfully bidding on a car at an auction. Finding the auction, registering, visually inspecting the car, being ready with a down payment, and following up with the balance of payment are all time-consuming tasks. And you must be prepared to move fast, so you’re under pressure. Again, online auctions are one solution to your concerns. But also, researching the make and model you’re interested in, and knowing in advance how high you’re willing to go on the models you might bid on will help you remain calm in what may seem a chaotic environment.

If you like the idea of buying a car at an auction, you probably still have concerns about the process. Gathering as much information in advance as possible, being ready with a down payment, and knowing your own bidding limits could help you save thousands of dollars on the car you’ve always dreamed of.