Car auctions or Auto auctions have been here for quite some time now. It is a method to sell new and used vehicles through an auction system. Though it is relatively unknown to most people, it is a useful way for anybody, whether they are interested in purchasing new vehicles, or selling old vehicles for a profit. Car auctions can be really helpful for you. So before you engage yourself in any car or auto auctions, allow us to educate you in understanding the different ways you can do so.
Here are a few types of car auctions available widely almost anywhere. Online Auto Auctions, Wholesale Auto Auctions, Public Auto Auctions, and Government Auto Auctions.
- Online Auto Auctions are by far the most popular in car auctions. Simply because it allows anybody around the world to participate and bid on cars. There are several websites on the internet that offer these services. If you find a car you want to bid on, try to get the Vehicle Identification Number(VIN) from the seller so you can run an AutoCheck Vehicle History Report on it. Of course, when you win the auction, you are contractually obligated to purchase the vehicle with the price that you last offered for it. Knowing this fact, plus the knowledge that you are against people from other parts of the world, you need to be careful and avoid getting yourself into bidding wars, which sometimes would make you pay more than you wanted to.
- Wholesale Auto Auctions are usually dealer to dealer type of auctions, and most of the time, the general public are not allowed to attend. The vehicles auctioned here are usually rental cars coming from Car Rental agencies, exotic cars, used cars the dealer received from a trade-in but doesn’t sell much, cars returned after its lease expires, and used cars that most major dealers do not want staying on their lots. If by chance you really want to participate in these auctions, try to get someone that’s a licensed private dealer and you can get them to bid for you.
- Public Auto Auctions are open to anybody who wishes to participate. They are held at a certain location where the bidding is done, though sometimes they are broadcast live and phone bidding is allowed. Compared to other auto auctions, Public Auto Auctions are very competitive wherein bidding prices can go high very quickly. This is a great place to purchase a nice car at a great price though, provided the car isn’t highly sought after.
- Government Auto Auctions are usually ones where they’re auctioning off government-seized vehicles which they no longer use. You have to keep in mind that these vehicles may be just lying around for a year or more without any maintenance and the like. So just the same, it is important to run a vehicle history report with any car you’ll be bidding on these auctions. More often than not, you have to be ready to do a lot of work on the vehicle you purchased at this auto auction.
Now that you know some information on car auctions, you can go ahead and participate in one. Always remember to be careful though in choosing a car to purchase, do not bid too high, and bid with your brain, not with your heart. Good Luck!