By: Gov Auctions | 20 September 2012
Securing Your Car Financing Before an Auction
If you are looking to buy yourself a new vehicle at auction but need to secure a little extra financing to afford it, make sure to get it lined up well before the bidding starts, as the less you have to think about on auction day, the more chance you are of being focused enough to snag an awesome deal. The following is a brief look at some of the main reasons why securing car financing before the auction starts is a very good idea.
Know what you want
To have any idea of how much money you are going to need to borrow, you will first have to work out what it is you want to get. Once you know the type of vehicle you are after, do some research into its market value – as well as any additional costs you may face – and then plan to borrow slightly more than this amount. If any car you end up bidding on surpasses its market value, you should commit to let it go, because apart from not being able to afford it, if it is over market value it is not a good deal.
There are a lot of options when it comes to getting financing for your car, so start looking through them as soon as possible, as this way you will be able to shop around and find the best deal. There can be a huge difference in interest rates as well as conditions on financing deals, so be sure to lend from the right people at the best possible rates, rather than just taking what you can get at the last minute.
Save time on the day of the auction
Some car auctions provide the option of financing in house, but you are generally far better off coming with your finances already taken care of, as this way you will have more time for securing that new car of yours. If you do manage a successful bid, having your own financing will also mean you will be heading off in your new ride a whole lot sooner, as otherwise you will usually have to try to line up your in-house financing after your bid has proven successful.
Set a firm budget for the auction
By having your financial backing secured before you even arrive at the car auction you will be able to establish a realistic budget based on what you have available, rather than what you are hoping to have. This can take the uncertainty out of your bidding and allow you to zero in a good option if you see one.
You don’t have to spend it all
Just because you may have secured a certain amount of financing for buying your car, that doesn’t mean you have to spend the entire amount, as one of the best things about auctions is that you can sometimes get extremely good deals. As long as any car you buy has all of the features and qualities you want, paying less for it is something you should well and truly welcome.