automotive Archive

Automotive Auctions: Cheaper, Better Alternatives

There are practically thousands of cars that the government and the police confiscate each year. And most if not all of these cars end up in public auctions or in a confiscated automotive auction. Auctions are actually a great thing.Because of these auctions, individuals who normally cannot afford a car have a fighting chance of owning one. The auctions have provided these people the small window of opportunity since most of the cars sold in confiscated automotive auction are sold with as much as 80% to 90% slashed off their appraised retail value.But one must always remember that in a confiscated automotive auction, it is basically every man for himself. It is therefore important to arm yourself with the knowledge and skills to identify the flaws of cars being sold in auction to get the best value for a car.When you won a bid in a confiscated automotive auction, or in any kind of auction, you should remember that you usually add a buyer’s premium on the winning bidding price. So beware on how much you bid. You might end spending more than you intend to.Buyer’s premium varies depending on the auction and depending on the cars. It is normal that buyer’s premium in confiscated automotive auction be 5% of the winning bid but at times it reaches 10% of the winning bid. So you need to find out before the bidding war commence how much the buyer’s premium.When you go in a confiscated automotive auction it would be wise to bring with you your little black book. No, this is not the one with the phone numbers of women but rather the notebook which contains car pricing updated at least monthly.This book will come in handy especially in wholesale auto auctions. The book normally contains vehicle makes, models, and the price of the vehicle if it is in bad, fair or good condition. This will definitely give you an idea how much to bid for a car.Now, when you go in a confiscated automotive auction be sure that you have enough money in your bank account since it is common practice nowadays at auctions that you show a bank draft instead of just checks. Also, always come in auctions early. Not only will you be able to get to examine the cars first but you will also have time to think and consider your options before the bidding starts.