Attending automobile auctions is a great way to find good deals on automobiles that have been seized by government entities if they were used in the commission of a crime or by private financial institutions if the original owner was not able to make all of the payments required.
Contrary to popular belief, attending car auctions is not a sure fire way to find a vast array of automobiles being sold at below value. On the contrary, most vehicles sold at car auctions tend to go for their approximate value. Nevertheless, with careful research and planning, it is possible to find cars at auction that sell below their blue book value.
Car auction attendees tend to fall into two categories. The first, and most common, is the interested novice who read about the auction in a newspaper or heard about it in a radio advertisement. Lured by the promise of below market automobile purchases, they head to the auction site unprepared and bid on any automobile that strikes their fancy. They typically either leave the auction empty handed or in an automobile that they paid far too much for.
The other type of auction attendee is the one who does his homework and takes advantage of opportunities to inspect the vehicles in the days leading up to the auction. This latter individual is much more likely to walk away from the auction either with a bargain or with nothing at all.
The most important thing to remember about car auctions is the following simple and often disappointing fact - the vast majority of cars sold at auction are sold at or above blue book value. This is surprising to hear since most television and radio advertisements for car auctions trumpet the vast savings that can be had.
Most people who attend car auctions are either used car vendors or savvy civilians. Most of them know exactly how much a car is worth, and many have deep pockets that can bid on all of the best deals. A few such individual can drive bids on all of the automobiles up to or beyond their actual value.
The only way to come out ahead in a car auction is to be smarter than the other bidders. Remember that many of the automobiles on the auction block have been flooded, wrecked, stolen, or may have been mistreated in a number of other ways.
Any reputable car auction will make all cars on the block available for inspection a few days before the auction. It is a good idea to run a title check on any automobile that you are interested in purchasing. While the auction is supposed to run title checks as well, they are not always entirely trust worthy.
The smart buyer will record then vehicle identification (VIN) number themselves and run a title check later, or phone the VIN to someone and have them run the check for them. They can get faster information this way and know quickly whether to pursue the car further or look elsewhere.
By the time the auction commences, it is important to know which cars the buyer is interested in and how much they are willing to pay. The worst mistake that can be made at this point is to get caught up in the emotional frenzy of bidding. If the price goes beyond what the buyer wishes to pay, then no more bids should be made.
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