If you’re looking to purchase a vehicle at a wholesale price, a car auction is a perfect place to explore your options. Online auction platforms feature various cheap cars, boats, trucks, SUVs, motorcycles, and more. However, auctions are fast-paced and overwhelming, so you must be prepared before purchasing your first car from an auction.
Buying a car on its own can be stressful for anyone not well-informed about vehicles and their mechanics. In auctions, the experience is more nerve-wracking for first-timers unprepared for the auction. Therefore, you must stay informed about the auction process and find high-quality auction cars for sale on reputable car auctions online. Some dependable online car auction platforms include A Better Bid (ABB) vehicle auctions, which features a variety of vehicles to choose from.
Additionally, knowing more about the auction process and the common mistakes that first-timers experience can also help you make informed decisions. This guide will elaborate on everything you need to know about car auctions.
Types of Car Auctions
There are several types of car auctions, but not all of them are accessible to the general public. If you’re looking to purchase a vehicle on a budget, you will have to participate in an auction that is open to the public. You can find open auctions near your area or access them online through a reputable auction platform, such as A Better Bid, Mecum, Barrett Jackson, USA Auto Online, Carriage Trade, and Classic Car Auction, among others.
Dealer-only auctions are exclusive to individuals holding a dealer’s license, which the State issues. While it’s possible to acquire a dealer’s license, the process can prove to be time-consuming and arduous. So, if you’re looking to purchase a single car, this option is unsuitable for your needs. This is because every State has its set of requirements for car dealer licensing, in which dealers are obligated to buy and sell a certain number of cars to become eligible for the certification.
Open auctions include two categories: auctions for government or police vehicles and auctions for general vehicles.
Auctions for Government or Police Vehicles
As the name suggests, these auctions feature government or police vehicles, such as buses, law enforcement cruisers, and utility trucks. You can also find impound cars confiscated due to traffic violations or crime. However, this category of a car auction is much more competitive, as experienced car dealers, taxi companies, and exporters typically participate to turn a profit.
Auctions for General Cars
When buying a vehicle from a car auction for the first time, these auctions are your best option. Open auctions for cars include repossessed vehicles from the bank, wholesale cars, trucks, bottom-of-the-barrel trade-ins, boats, salvage vehicles, trucks, SUVs, and even high-end sports cars. Like all auctions, the type of vehicle you find may vary from auction to auction. Therefore, you need to research and leverage a reliable platform with a rich variety of vehicles available at affordable prices. For instance, A Better Bid is an online auction that showcases more than 300,000 every day. You can find the right car at an auction with a wide variety.
What to Expect At Your First Car Auction
Your first car auction can prove to be overwhelming if you’re not prepared. However, if you set a budget, do your research, and select the right platform, your first purchase from an auction can be a great success. That said, you can still set the following expectations before participating in a car auction.
You May Have to Find a Different Dream Vehicle
As mentioned earlier, car auctions have a different variety of vehicles on a daily basis. Therefore, the car you may have picked out for yourself the day before may not still be in the listing the day you register. In such cases, it is best to research your options beforehand and create a list of backup vehicles that you can bid on. You can stay informed on all the makes and models you wish to purchase and compare pricing to make a smart bid quickly.
The best approach for research is to visit the auction’s website and browse through the vehicles available. For instance, A Better Bid offers a search option where you can filter cars depending on the manufacturer and its make and model. Once you find suitable vehicles, you can register online and start placing bids.
Know When to Make the Final Bid
In car auctions, you don’t just have to place a bid. Instead, you have to win it. Therefore, most first-timers make the mistake of placing a bid on their dream car that exceeds their set budget. Before registering at an auction, set a benchmark on your vehicle’s maximum amount you’re willing to spend. So, when the bids on the car surpass that amount, you can stop the bidding and move on to other, more affordable options.
Bring In An Expert
When you’re participating in a car auction for the first time, getting caught up in the bidding wars is very easy. Confusion can often hinder first-time buyers’ ability to make suitable decisions for their buying needs. In such cases, it is best to consult with an auction expert when you register for an auction online. This individual can be a friend, a family member, or anyone with experience buying at auctions. These individuals can guide you on the ins and outs of a car auction and help you control your urges to place an out-of-budget bid.
The Bottom Line
Your first car auction can be an exhilarating experience. However, if you want to get a good deal and avoid making mistakes, it is best to research all your options and create a list of backup vehicles that you can bid on. Additionally, you must register with a set budget in mind and ensure you do not overspend. Lastly, you can also get insights from an experienced buyer to make wise decisions.