Tips For Buying Used Cars at Auctions

Buying used cars from auctions is not for everyone.

Yes you can get a better deal on an equivalent car than you would from a dealer (maybe), but the risks are higher.

It’s a fact a lot of lemon cars with too many problems for a dealer to fix end up at the auctions.

Car dealers do this because they don’t want to have to honour their statutory warranty on a car they know has a high likelihood of being returned.

Also no dealer likes having disgruntled customers.

It is not good for business and nor is it good for our own time management.

Whether it be for cars, houses or furniture (or whatever) buying and selling through the auction process is a bit of a dark art.

If you do decide to put your toe in, here’s a few tips:

1. A lot of auction houses are dealer only. But there are a few that have public open auction days. Steer clear of the auction places that deal with older cars – look for those with cars for auction under 12 years or so.

2. Most auctions will have a list of their stock available for viewing prior to the auction day. They used to fax these but now all auction houses will have their lists available from their websites for downloading a few days prior. Go the next step and actually view the cars in person prior to the auction day. Have a good thumb through logbooks/service history and make sure all of the electrics work (e.g. radio, mirrors, ariels, seat controls, etc). Although you won’t be able to take the car for a test drive, make sure you or a friend you bring along knows what to look for – e.g. oil leaks, condition of brakes, hoses, air conditioning, etc.

3. For the used cars you have picked out, make a clear figure for each in your head how much you are willing to bid MAXIMUM. Do not get emotionally involved with your bidding. Be very firm with your ceiling figure. Of course do your price research first so you know what is a good deal and what isn’t.

4. Attend a few auctions first. Don’t go in cold at your first every attendance! See how people are bidding and try to work out their strategies. Also take note how the auctioneers start at prices, drop then try and get higher.

5. Always be prepared to walk away. There’ll be another auction either at your preferred auction house or another within weeks.

6. Ask if you can get an inspection done prior to settling. Chances are the answer is no to this (hence the risk factor being higher at auctions) but until you ask, all you have is a no.

I’m sure there are lots of other tips for buying cars at auction, but this short list will get you started.

Got a car you want to sell quickly in Brisbane? Call me on 0411 362 229.