Buying a car is always exciting, but not everyone can afford a spanking new one. With the prices of new cars continuing to climb, many people have no option but to opt for auto auctions and switch to used cars. But considering the ever-increasing new car prices, this might just be the wisest decision you have ever made. To be fair, here, let’s take a look at why there’s a growing number of consumers who are moving towards auto auctions as supposed to purchasing a new car from a dealership.
The price is always going to play a major role in whether or not you get a new car or go for a used option. This is why it is crucial to first evaluate your financial situation before making a decision. How much money do you have set up for a car? If you’re thinking about purchasing new, this has to go beyond the cost of your down payment. There are numerous taxes and fees associated with purchasing a new vehicle, not to mention the cost of maintenance, insurance, registration, and other expenses. Even though they may not require as much maintenance, new automobiles are pricey all year.
When buying a used automobile at an auction, you may frequently purchase the vehicle for less than what you would have paid as a down payment on a new car for sale. Naturally, this translates to a significant increase in savings. However, you should keep in mind that you may need to do certain car repairs before you can drive it.
While you’re at it, consider the car’s depreciation value, which is something that not many new car buyers consider. What is the most costly aspect of purchasing a vehicle? It’s known as depreciation and is easy to understand. What it means is that a new automobile is going to lose its value as soon as you drive it off the dealership lot. In reality, automobiles can lose up to 30% of their initial value at the time of purchases.
When you buy a new automobile, the value of the car depreciates over time, so you’re really losing money, which is something you won’t have to worry about if you buy a used car. When you buy a car at an auto auction, the depreciation has pretty much already been paid for you.
Car Auction Categories
There are two major types of car auctions that are important to know, especially for those who will be going to an auto auction for the first time. The government/police auction and the public car auction. These include all vehicles that the government uses, such as buses and police cruisers, and so on.
Additionally, government auctions also include impound automobiles that have been impounded due to traffic offenses or those that have been involved in criminal activity. Since government or police auctions provide access to vehicles that are better in terms of value for money, there is usually stiff competition amongst those who take part in these auto auctions.
Repossessed automobiles from banks, wholesale car lots, flood junkers, bottom-of-the-barrel trade-ins, and occasionally high-end sports cars and SUVs are among them. It is important to note that the stock’s quality and consistency fluctuate at these auto auctions, which is why it is important to do your research ahead of time. Because these auctions have grown in popularity since the recession, there is tremendous competition at public car auctions as well.
If all that has got you confused, then there’s a simple mantra to follow. In general, banks have the best variety of cars at the best prices. Period. These are the automobiles to look for at a public auction, according to Edmunds.
Typically, these are repossessed automobiles and trucks that the lender just wants to sell for a profit. Make sure the automobile has been well-maintained and that the inside is in good working condition, as these are common issues with repo autos.
Secure a Loan
If your bid is successful, you will require cash or a pre-approved loan. If you want to pay using a bank loan you already have, be prepared to pay a deposit once your offer is accepted. Determine which credit cards are appropriate for this use ahead of time. Taxes, title, and registration costs will also be charged.
If you’re getting a loan to buy a car, you’ll almost certainly be required to get collision and/or comprehensive insurance. So, before you buy, it’s generally a good idea to speak with an independent agency that can help you locate auto insurance quotes. Independent agents deal with a variety of insurers and can save you money by comparison shopping for you.
It’s crucial to remember that secondhand automobiles can have problems as well, and most of them are related to upkeep. A secondhand car may require significantly more repairs and upkeep than a new car. However, the majority of the repairs will be completed when you initially purchase the car at an auction.
Following that, good maintenance should reduce the number of repairs you’ll have to do. Buying new automobiles for sale, on the other hand, may be a better alternative for you if you want the least amount of bother.
One of the reasons why the new car market has taken a hit in recent years is because, as the prices of new vehicles continue to climb, people are finding it harder to trade in their current vehicles for a new one which was a trend that caught on in the 90s. With new car prices soaring high, many car owners who would have otherwise traded in their current car for a new one have no choice but to use auto auctions as a more cost-effective option.
According to KAR Global, the average used-vehicle price at auto auctions was $15,000, which is up 20% from the same time a year ago. This only goes to show that consumer interest in auto auctions isn’t going to wane any time soon. In fact, more consumers are now turning to auto auctions than ever before. If you are in the market for a new car, then choosing a reliable auto auction platform will be a great way to get a close-to-new car at a bargain price.
But, that is only possible if you choose a reliable platform that you can use when getting a car from an auto auction. This is where RideSafely.com comes in. The platform has become the go-to choice for many individuals who are looking to get the best bang for their buck when using auto auctions. The site is also chock full of useful information and other resources that will tell you all there is to know about taking part in an auto auction, along with other related information.