There are many reasons folks turn to online platforms to purchase anything these days. From smaller gadgets to cars, you can buy almost anything online. When it comes to buying cars, online car auction sites have become the go-to resource for many people who can’t afford a new car. Keeping that in mind, here we will take a look at how you can get the most bang for your buck at an online car auction.
Although it is impossible to predict the precise amount a buyer would pay, the typical market value of an automobile can be estimated. The best price you should pay for a car at auction (rather than in a store or shop) may be established by subtracting shipping expenses, other exporting fees, and your estimated profit from this appropriate market price. The final value is the amount you should spend at an auction.
Finding the best auction price requires some study to identify automobiles with the best price disparity between the overseas market price and the selling price in the United States. There are several internet sites for determining a vehicle’s market value. Using services like Kelley Blue Book or Edmunds is the most typical technique since they provide the best automobile value for shopping, discounts, and other purposes.
Remember that vehicle valuation sites only give an estimate and are generally targeted at conventional car buyers and sellers who will be negotiating the retail value of a car with a car dealer. The challenge of evaluating an automobile at an auction gets a little more complicated.
Inspect the Vehicle
Why do people spend thousands of dollars on a car after only taking it for a spin around the block and peeking under the hood? The inspection procedure may be straightforward and as revealing as a hidden-camera exposé with a bit of forethought. You may buy with more confidence if the inspection report is clean. If it reveals serious flaws, you can back out or negotiate a reduced price to reflect the expense of repairs.
Most vendors will allow you to see the vehicle or would agree to a mobile examination at their house or place of work. If the seller hesitates, you could question what they’re concealing and decide to back out of the sale.
You should try to get the inspection done by a mechanic with whom you already have a good working connection. In addition, the examination should involve a test drive to reveal suspension and engine performance concerns.
Having the vehicle inspected and tested by a third party builds trust and familiarity with the vehicle. Sure, there’s a wealth of information about every model on the internet, but you need specific information about this vehicle right now. An expert check will reveal both what is wrong with the car and how much you can bargain.
Shop at the Right Auction
Unlike local brick-and-mortar auctions, online auction sites are where the real deals are found. The automobiles are mainly sold as trade-ins. So, instead of spending $12,000 to a dealer for a 2013 Ford Edge with 90,000 miles, you might get one for $7,000 at an auction.
Look for auctions that are “open” or “public” and do not require a dealer’s licence. Other specialty auctions specialize in selling specific types of vehicles, such as police cars, pickup trucks, or vehicles used by government employees.
Public auctions are normally free to attend, but if you wish to bid, you may have to pay a charge of around $40. Most auctions take cash or cashier’s checks and require a deposit and full payment within 24 hours of the start of the auction.
Buying a used automobile from an auction rather than a private seller offers several advantages. First, rather than searching for used car ads from private sellers online, it’s better to browse a dealer’s lot for various vehicles. As a result, you may have a higher chance of discovering something that meets your requirements and budget.
Dealers are also more likely to clean and check a vehicle, and they are bound by FTC guidelines and state and municipal laws. When you buy from a well-known company, it has a reputation to preserve. They will almost always include some type of guarantee, even if it is only for 30 days.
What About Salvage Vehicles?
When compared to an automobile with a clean title, a car with a branded title, whether salvage or rebuilt, will have a lower value. Generally, a car with a salvage or rebuilt title might be valued thousands of dollars less than one without this sort of branded title. According to auto and insurance industry sources, the value of a car with a rebuilt or salvage title drops anywhere from 20% to 50%, depending on the type of vehicle and its age.
The phrase “auction” delights a bargain seeker like nothing else. Can you really get a good bargain on a secondhand automobile if you buy it at an auction? Yes, but with an asterisk — or even three — following it.
Sure, you may discover some excellent bargains. Auctions are held to move automobiles that have failed to sell elsewhere for various reasons, and they are attended by professionals who are well-versed in every trick in the book. You won’t be able to test drive the automobile, you’ll have limited time to check it, and the bidding procedure will be rushed. It all boils down to weighing your risk against the amount of money you could save.
In the first three years of ownership, newer standard automobiles lose around 60% of their value. However, because certain more prominent or sought-after models might actually gain in value, this is a general number. The exact loss depends on the type of automobile in the issue.
It’s better news for somewhat older used automobiles because, according to the AA, depreciation tends to level out around the eight-year mark if the vehicle is well-maintained; it won’t lose as much value every year after that. It goes without saying that models from more prominent names hold their worth for longer — Ferrari, Lotus, and Porsche, for example, are among the brands with the slowest depreciation rates.
If all this seems too much to handle, why not head to RideSafely.com, your one-stop-shop, to get the best price at a used car auction and loads of other useful information.