If you\u2019re shopping for a car that\u2019s a rare breed, auctions may be the best way to find what you\u2019re after. Depending on the auction, you could come across rare vintage cars or performance cars sold at a fraction of their value.<\/p><\/div>\n <\/div>\n<\/li><\/ul>
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How does the auction process work?<\/h3>
Auction houses access used cars from a variety of sources, such as ex-police or government cars, cars repossessed by finance companies and former rental cars that are due for replacement. You can find auctions that only deal with specific types of vehicles like classic cars, as well as more general auctions.<\/p>
Here are 7 steps to buying a car at auction:<\/p>
1. Find car auctions near you<\/h4>
Search online for auctions in your area. After you find one you\u2019re interested in, check to see if there\u2019s a catalog available of the vehicles that will be auctioned. This typically provides information on each car\u2019s model, ownership history and potential costs for maintenance and repairs.<\/p>
You also might want to consider visiting a few auctions in advance to get a better understanding of how they work.<\/p>
2. Register in advance<\/h4>
You\u2019ll likely need to register for the auction and provide identification in advance. You may also be required to prove you have enough money to pay for a car at auction, so have a bank statement, credit card statement or loan pre-approval offer on hand just in case. When you get to the auction, the auctioneer will give you an identifying marker like a numbered car or paddle which you can then use to make bids.<\/p>
3. Compare the different cars available<\/h4>
Don\u2019t rush to bid on the first car you see. Look at each vehicle to compare builds and see which one you\u2019re interested in most. If the seller is at the auction, ask them why they\u2019re choosing to sell the vehicle and if there was any repair work that was done. If you have any questions or concerns about a vehicle, raise them before<\/em> the auction rather than after it commences.<\/p>4. Inspect the vehicle<\/h4>
If possible, look thoroughly at the interior and exterior of the car to check for defects, such as signs of previous accidents, rust or broken parts. Check for registration papers as well as the vehicle identification number (VIN).<\/p>
The VIN can typically be found on the dashboard, driver\u2019s side door and in front of the engine \u2014 make sure the numbers match, otherwise the car might be stolen. You can then use the car\u2019s VIN to look up the vehicle history<\/a> report, which verifies ownership history, accidents and repairs.<\/p>5. Start bidding<\/strong><\/h4>This is when you\u2019re facing off against other people interested in purchasing the same car as you. Vehicles typically come with a reserve price<\/strong>, which is the lowest bid that will be accepted. If no bid reaches the reserve price, the seller can choose not to sell the car. But if a bid is above the reserve price, the seller must accept it.<\/p>If you have the highest bid at or above the reserve price, you\u2019re required to complete the sale. For whichever car you\u2019re interested in buying, keep the market value in mind to determine if you\u2019re actually getting a good deal.<\/p>
6. Negotiate with the owner if the car doesn\u2019t sell.<\/h4>
You can try doing this if a car failed to reach the reserve price. You can possibly get the seller\u2019s details from the auctioneer to negotiate with them directly.<\/p>
7. Pay for the car and transfer the title<\/h4>
If you\u2019ve bid successfully, you\u2019ll generally be asked to make a down payment of around 10% at the end of the auction. This is why it\u2019s a good idea to have a pre-approval offer from a few different lenders to prove you have the funds available to pay for the vehicle.<\/p>
Compare car loans to buy a used car at an auction<\/h3>
Compare the lenders below to find the right car loan for your auction purchase.<\/p>