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5 Things You Must Know Before Bidding In A Car Auctions

5 Things You Must Know Before Bidding In A Car Auctions
Buying a new car is a thrilling time in a young adult’s life, but it can also be a trying one.
You need to have a strict budget in mind when you head out to go car shopping and you will also need to explore all avenues of purchasing a car. This includes understanding car auctions. You might think that repossessed cars do not carry the same quality as used or new cars, but in fact, sometimes the opposite is true.

If you are considering looking at cars on auction there are some tips you can follow. For online auctions, you will need to research the vehicle details, such as the year, model and mileage of the vehicle as well as be sure that the vehicle auctions are being performed by registered professionals. Many sites have repossessed vehicles added daily which you can choose from. So, read on below for top tips on how to buy an auction car.

- Have a bid amount in mind

Before you start looking for a car auction online or in your area, you will need to have a bid amount in mind. You will need to find out how much money the bank will approve you for based on your affordability and your credit rating. This will help you to have a number in mind for the auction.

You can look online for various auctions to get an idea of how much the bids start at and what the increments are for increases. Each auction house is different, so be sure to look for one which will match your affordability. For example, if you have a low budget, it is best not to look at a classic car auction site as these prices could be expensive. Base your decision on what you can realistically bid once you have compared the websites.

- Gather your documents

Once you have a bid amount in mind, you will need to gather your documents and make sure they are in order. Additionally, you will need to have the registration deposit ready, which can generally range in price from $350 to $400. This deposit is refundable but is used to show that you are a serious bidder.

You will need to provide your ID along with a copy of it, proof of residence in the form of a utility bill (not older than three months), and validation that you are able to make the payment, such as documentation of an approved vehicle loan. You can also provide a verified bank statement showing that you have the funds available and ready to use. This might sound like a lot of paperwork but it is in place to ensure all bidders are serious.

- Be sure to inspect the car

Now, inspecting the car at an auction is not the same as inspecting one at a dealership. You will not be able to drive the car or make an in-depth inspection but you will be able to sit inside the vehicle, start it, and inspect underneath the hood.

You should bring along a mechanic or mechanically-minded friend so that they can take note of any issues the car might have. You will be able to make an informed decision, rather than simply judging the car’s appearance. You could make notes on the day so that you are prepared for the auction and can bid on the cars that meet your standards. You can also take photographs, if the auction house allows it, so that you can think about the car before the auction.

- Know when to stop

It can be easy to become caught up in the excitement of an auction, but it is important to know when to stop bidding. If you realise that the bidding increments are being raised to an amount you cannot afford, it might be time to put down your paddle and stop bidding. It is important to stay within what you can afford when bidding.

If your bid is successful but you are unable to pay for it, your deposit will be forfeited. If you make a bid but are unsuccessful, you will receive your deposit back in full. This means it is important to know what you can afford to bid and when you should stop. If you make a successful bid, the deposit will be taken off of the final amount. Keep your budget in mind at all times, and bring along a friend or family member who can help dissuade you from bidding too high.

- Bid your best

Buying cars on auction can be an effective way to find an affordable car that is not too old or damaged. You will need to follow a simple process in order to be successful such as starting out by having a bid amount in mind. Be sure to have the correct documents in mind and opt to inspect the car before you make any bids. If you know when to stop bidding, you will have a great auction experience.
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