By: Gov Auctions | 2 June 2015
7 Reasons to Buy Your Next Car from an Auto Auction
When it comes to buying used cars, you can go to your car dealer or attend and bid in an auction. Here are 7 reasons why the latter sounds better:
- Options are aplenty. Well, you can see a lot of choices if you go to your nearest dealer, but in auctions, we’re talking about hundreds. Best of all, these cars are varied in terms of model, year, mileage, and design.
- With so many car auctions available, you are not tied to a specific location alone. If you can’t find what you’re looking for in your local auction, you can travel to the closest city or state. Some auto auction listings sites let you customize your search to display first those auctions near you.
- You can save money. Do you know that car auctions can offer their vehicles for as low as 90% their market value? It’s because the primary reason for the sale is no longer to make a profit but to recover expenses or dispose the asset without losing its market value completely. Moreover, you can avoid buying the cars you want from dealers who also get their inventory from these auctions.
- The auction is actually a very simple process. In less than a few hours, you can already have the car of your dreams! Car auctions are no different from the regular ones: you place a bid, hope that you win, and if you do, you complete the paperwork.
- You can bid online. If you don’t like the crowd, don’t have the time to travel, or prefer the easiest way to bid, then the online car auctions are for you. Although you cannot inspect the vehicle, you can choose to bid without having to spend any money. It’s only when you win that you have to personally see the auctioneer and pay the price.
- Most cars give you good returns. Cars at auctions are sold as is, so if there are defects, it’s your responsibility to fix them, should you win the bid. However, many of the vehicles too are in pristine condition with great mileage. Plus, since you get to buy them very cheaply, you can enjoy a handsome profit in case you want to sell them.
- Some cars are so cheap you don’t need to get a loan. In auctions, many used but great-looking cars are sold at very low prices (e.g., no more than $5,000) that it’s perfectly okay to pay them in cash. That saves you from around 3 years of paying principal and interest.
- You can bring your own auto mechanic. Most car auctions allow you to perform inspections, where you can tag along a professional auto mechanic. You can do this without having others raise their eyebrows, which usually happens if you do this in car dealership shops.