Buying from a car auction has become a new trend in recent years, as research shows that more than nine million cars are sold annually through auctions. Car auction platforms, such as A Better Bid, allow individuals to find quality cars conveniently.
That said, the cost of purchasing a vehicle can vary depending on the type of auction you are participating in. For instance, if you’re buying from a dealers-only auction, you might find vehicles at a higher rate. So, if you want to know more about car auctions online, continue reading. The guide will elaborate on online car auctions, such as the abetter.bid, and whether it’s cheaper to buy from them.
What Are Car Auctions?
Car auctions allow individuals to purchase vehicles using the auction approach. Therefore, the buyers place bids on the presented cars, and the vehicle is sold to the highest bidder. Several car auctions are open to the public. With these, you can find vehicles at an affordable price or even invest in vehicles with salvage titles. Purchasing a vehicle from a car auction is a great way to cut costs or turn a profit.
Why Are Cars Sold at Auctions?
Several reasons contribute to placing cars up for auctions. Auctions allow owners to sell their excess inventory to make a profit. For instance, cars that stay at the dealership without much buyer interest are typically featured in auctions to attract customers. These cars are sold at a much more economical price, enabling customers to find quality vehicles at affordable prices.
You can also find vehicles with a salvage title at a car auction. Insurance companies issue salvage titles for vehicles with a higher repair cost than their total value. For such cars, the insurer presents the car at an auction to reclaim some value. In exchange, the owner is paid a set amount for the vehicle.
Additionally, you can also find trade-ins that fail to meet the reseller’s inventory requirements at a car auction. After being returned to leasing companies, vehicles that require a new owner also find themselves at a car auction. A car dealer may also present repossessed vehicles at an auction if the borrower fails to make their auto loan payments in time.
Are Car Auctions Cheaper?
A car auction provides a more affordable platform for purchasing used and salvage, as the vehicle is typically sold at a wholesale price rather than retail. Considering this, car auction prices are usually twenty percent less than that offered by private sellers or car dealers.
For instance, if you’re in the search to buy the classic 2018 Ford Mustang GT, the approximate retail price of the vehicle would be around $31,100. However, you can find the same model at an auction and purchase it for around $25,400, which cuts your overall cost by 18 percent.
The cost reduction is not only limited to cars. In fact, pickup trucks, boats, hatchbacks, and sports cars are available at auctions for low prices. Let’s take the example of a 2014 Dodge Ram. At an auction, the vehicle would be priced at around $15,800, whereas you will have to pay around $21,400 if you’re buying at retail price.
No matter what type of vehicle you want, car auctions provide a more affordable platform to purchase an automobile.
What Kinds Of Vehicles Can You Find At A Car Auction?
Car auctions feature a diverse variety of vehicles to choose from. You can find boats, trucks, junk cars, SUVs, and motorcycles, among others, at dependable auction platforms, such as A Better Bid, Mecum, and Barrett Jackson.
A reputable platform will showcase a rich profusion of cheap cars for you to bid on. For instance, A Better Bid is one of the leading online car auction marketplaces that showcases more than 300,000 economically-priced automobiles on a daily basis. As registered Copart brokers, ABB allows customers to directly place bids on wholesale auction vehicles from the comfort of their homes.
Car Auction Must-Do’s
Car auctions are fast-paced. You need to place bids quickly to get the vehicle you want at a lower price. If you’re buying from an auction for the first time, the following tips can come in handy.
Always Set a Budget
The most critical step of investing in a vehicle is to set a budget. Before the auction, decide the maximum amount you are willing to spend. Your cut-off budget will prevent you from making a bid that falls out of your price range. However, you must also be prepared to let the vehicle go if the bids exceed your financial plan.
Do Your Homework
Researching the vehicles you wish to buy before the auction begins can be a smart move. With background information available on the vehicle, you can quickly decide if the car is worth its price. This initiative can help you compete with other buyers.
Obtain Vehicle History Report
The Vehicle History Report provides information about the car’s ownership, title status, and accident history, among other critical pieces of information. This document will keep you informed about the vehicle’s state, so you can choose to buy vehicles that are in better shape. However, some car auctions may not provide a vehicle history report. You will have to go through their terms. For instance, at A Better Bid, premium members can acquire ten vehicle history reports while expert members can request for 50 history reports. Basic members will have to purchase the reports.
Similarly, if you are bidding at other platforms, such as SkipCo, Classic Car Auction, and Carriage Trade, you will have to check out their policies first.
Car auctions sell vehicles at a wholesale rate, which makes them a more affordable option. However, if you’re buying from an auction, make sure to set a budget, properly research the vehicles, and evaluate their condition through the Vehicle History Report before placing a winning bid.