Advantages Of Used Car Auctions

Used car auctions are a great way to get a new set of wheels at a very affordable price. The nature of an auction lends itself to finding items sold at under market value, and this is especially useful for cars, where market value can often be uncomfortably high. That's why drivers with clearance for participation flock to used car auctions, looking for bargains.

The Advantages

Obviously, part of the value of used car auctions is in the "winning bid takes all" scenario. Unless there is a high reserve price set on vehicles, a buyer who is not facing a lot of competition can take a vehicle home easily. Also, car auctions are often filled with repossessed, seized or confiscated vehicles, where nothing at all may be wrong with a car or truck. Cars or trucks taken from irresponsible or felonious drivers can be sold way below market value, and the buyer reaps the savings.

Getting There

Many used car auctions are only open to bidders who have dealerships or auto shops. A "dealer's ID" is often required for participation in some of the better used car auctions. Drivers often put in requests to a family member or friend with a dealer ID, and go to auctions vicariously.

Buyers Need Appraisal Skills

Unlike a dealer's lot, the used cars at auction don't come with warranties. Buyers need to be skilled in assessing a vehicle through on site inspection and test driving. Otherwise, they can end up with costly lemons.

Taxes and surcharges

Even when buying a vehicle at auction, additional charges will still apply. Tag and titling fees, used car taxes, and other "closing costs" need to be figured into the total bill when looking at how good a deal an auction car really is.

Drivers who heed these tips can often find a great deal through careful research and patience.