By: Gov Auctions | 28 May 2013
Using Credit to Buy at an Auction
Using credit to buy a car at auction can be a fantastic way to get that car you want or need a whole lot sooner, but as with any type of loan it is important that you are being extremely careful when using credit. The following takes a brief look at some of the biggest things to consider when using credit to buy an auction car.
Establish How Much You Can Afford First
If you need to borrow money to buy a car it is important that you aren’t borrowing more than you can afford to repay, because if you are unable to keep up with your loan repayments your car may get repossessed before you have a chance to properly enjoy it. When you are establishing your budget for the car make sure to include any taxes as well as the cost of car insurance, and only once you have worked out an affordable budget that covers all your bases should you consider applying for any sort of financial assistance.
Secure Credit Before The Auction Starts
Whether you plan on looking for your car at a government auto auction or a public one, if you plan on using credit to make the purchase it is wise to have your credit secured well in advance of the auction starting. While many auctions will have credit available on site it is a good idea to arrive at the auction with your credit already taken care of, because often you will get better interest rates if you shop around for them. Another advantage of arriving with your credit already secured is that you will have more time to take a more thorough look at the various auction cars on offer.
You Don’t Have to Spend It All
Regardless of how much credit you get approved for to buy your car it is good to keep in mind that you don’t have to spend it all, because often you can get some incredible deals on cars at auction that may mean you end up paying far less than you thought you would. It can help to do some research before you attend the auction so you have a better idea of the value of the cars you are most interested in, as this will help you to know the difference between a good deal and one you should simply stop bidding on.
Take Care of Your Needs Faster
If an unexpected incident or accident has left you without use of a vehicle that you can’t afford to be without yet can’t afford to replace straight away, using credit to buy another one at auction can be a fantastic way to replace it sooner rather than later. So whether you desperately need a vehicle for getting to work or for shuttling your family around, rather than risk losing your job or putting your family through hardship, work out how much you can afford to repay and use credit to replace your car at auction fast.