Pros and Cons of Car Auctions

Your basic car auction is a struggle, a steel cage rumble involving stingy bargain hunters, thieving con artists, and free spending suckers that results in a transaction that represents capitalism at its finest. Each character has his own role, tendencies that make the car auction game both a profitable and a potentially dangerous one, and it’s important to know exactly where you fit in.

Car Auction Pros

The possibility of cars being available on the cheap is the biggest advantage for car auctions. In many cases, the seller may be desperate to find the best deal, and is willing to fork over a gem for very cheap. In other cases, such as seized property car auctions/strong> or government auctions, the fat cats in Washington merely see the auction as a tool to rid themselves of confiscated drug lord possessions, and not a form of profit. Taxes take care of that business. In addition, cars also depreciate faster than fresh milk and can be worth pennies even if they run like new. With the internet being global, there are also a wide range of cars to choose from, although understandably you will skew towards car auctions in your area. In any case, with plenty of cars and low prices to choose from, as long as the bidding doesn’t get out of control, a car auction, whether it is a public car auction or an online car auction, can be a valuable resource for all you looking for a bargain. Provided you aren’t a sucker.

Car Auction Bargain Hunters versus Car Auction Suckers

They are two things that separates a good car auction bargain hunter from the average, run-of-the-mill sucker. Composure, and research. Composure is vital when facing other car auction bidders. You must know what your limits are, when to sustain your greed, and not get carried away in the excitement of the first few items. Most of these tools are vital in the public car auction. The online car auction is a different game altogether, but it is there that the second most vital component comes into play -- doing research. With con artists and criminals jumping on the online car auction game, doing the title checks and research can be the most important part of the entire process. If you follow these simple steps, you will be on your path to becoming a good car auction bargain hunter.

Car Auction Cons

With so little known (save a picture) on many online car auction sites, the thieves are out in full force to sell you lemons and spend your money on booze. It is of utmost importance to run a car title check before you buy, and to use a legitimate company such as CARFAX.com. Common mistakes people make in the online car auction world is to look at a seller’s good rating and assume the product they are buying is legit, when anybody can create ten or twenty profiles and pat themselves on the back. The true con artist will go to such lengths to make his trick work. With the repo car auction or the public car auction, there is less likelihood of fraud, but more of a chance for hidden fees such as an auction house premium, which can run anywhere from 5 to 10 percent.

Dealers Have the Upper Hand in Car Auctions

First of all, some car auctions are privy to only dealers anyway, but in all car auctions, you can expect the dealers to be prancing around with their Cliff’s notes and guides to how much they should bid on each car. These are pros, experts who know the game and know how to play it. With snakes like these around, don’t expect to be buying that Benz for ten grand.

Car Auctioneers Are Salesmen

Remember, the car auctioneer is no better than the car dealer. Always keep your skeptic eye and lie detectors in place, and to back up everything with research. VIN #’s, title checks, and the like are of utmost importance. Of course, the most vital purchase you make may not be the vehicle itself, but the used car extended warranty (WarrantyDirect.com) for the vehicle. This will be your protection against any dangers inherent in the car auction.

Online Car Auction Sites to Check Out

InvoiceDealers.com
CarAuctions.com
AuctionPass.com
CheapCarFinder.com
AutoBargains
AmericanAutoBargains.com