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The Basic Rules Of Car Auctions By M Slater Car auctions are a great way to look for a vehicle if you know what you're looking for, and you understand the rules. Just like any purchase situation, auctions have their own set of rules and standards that differ from a private sale. Though each auction house may have different or additional guidelines, most follow the basic set of guidelines listed below. First, the FAQs:
What are the benefits of a Car Auction?
In most cases, you'll get a drivable vehicle with a pink slip that you can take home that day, or the following day depending on payment schedules.
Where do the cars come from?
You'll find lots of different vehicles for sale at an auction. Ex-government vehicles, leasing companies, fleet operators, finance companies, and even general auctions with privately owned vehicles. Check around the various auction houses often to see if they have what you're looking to buy. They get different vehicles in every day.
Can you inspect the vehicles?
Yes, in most cases, you can inspect the interior and exterior before the auction begins. However, you won't be able to test drive the vehicle before purchase. You'll want to check the times with the auction house and arrive in plenty of time to inspect prospective vehicles.
Are there warranties?
The cars are sold 'as is', meaning what you see is what you get. Some auction houses will do a pre-auction inspection and verify problems and damage. However, some auction houses don't provide this service, so you'll want to be prepared. Be sure you're knowledgeable about cars and understand the vehicle's problems before making the purchase. If you have little car knowledge, bring someone with you that knows what they're doing.
The Bidding Process
If you've never been to a before, you might want to go and visit one before actually bidding to see how it works. Once you register for a bidding number, you'll be able to get in on the action. Auctions can happen very quickly, so be prepared when the vehicle of choice is announced. Double check the lot or engine number for verification.
When the auctioneer brings a vehicle up for bid, he'll start at an amount and raise it at different monetary increments, such as $100.
When you bid, raise your number and make sure the auctioneer acknowledges your bid. He'll look to you as the bidding increases for your nod to raise your bid. When the bidding is done, he'll knock down (bang the gavel) the vehicle to the highest bidder and record their bidding number.
Bidding Rules
Auction houses take bidding very seriously, and you don't want to end up wasting your money on something you don't want. Make sure you understand what the auctioneer is offering, and the price. Once you make a bid you cannot withdraw it. So by bidding, you're making a commitment to purchase that vehicle or item.
How to Prepare
Make sure you get your finances in order before the auction. You'll be expected to give a deposit (usually $500 to $1000). You'll also want to know what your budget is, so you don't get carried away during the bidding. If you can, research what kind of car or truck you're looking for, and get a price range of what that car sells for to help you make bidding decisions.
What Do You Need
You'll need to show a valid driver's license or passport (they want a photo ID) and have either cash or a bank cheque to cover your deposit.
Now that you know the rules to car auctions, you'll be on your way to owning a vehicle in no time. Just be careful to follow the bidding rules, and you'll end up with the title on a vehicle you're happy to drive!
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