Public Auto Auction – Bargain or Bust?
By car-guy. Filed in public auto auctions, seized car auction |Tags: auction, auto, public, public auto auction
We’ve all heard the stories about a friend of a friend who bought a new Corvette for $500 at some sort of public auto auction, right? Does this sort of thing really happen or is it just an urban legend?
The truth is that any public auto auction of any kind is going to have car business professionals in the crowd and if they’re letting a new Corvette sell for $500, then you can bet the car has serious title problems.
Tip Number One – Always Check the Title – Most people don’t know that the police are not required to have clear title to the cars they impound and sell. There’s no excuse for you to not run an AutoCheck vehicle check on any car you’re considering buying.
Tip Number Two – It’s All About Condition – The condition of a car will affect its selling price by thousands of dollars so you must carefully check the condition. Here’s how the Kelley Blue Book defines condition:
EXCELLENT:
- Looks new, is in excellent mechanical condition and needs no reconditioning.
- Never had any paint or body work and is free of rust.
- Clean title history and will pass a smog and safety inspection.
- Engine compartment is clean, with no fluid leaks and is free of any wear or visible defects.
- Complete and verifiable service records.
Less than 5% of all used vehicles fall into this category.
GOOD:
- Free of any major defects.
- Clean title history, the paints, body, and interior have only minor (if any) blemishes, and there are no major mechanical problems.
- Little or no rust on this vehicle.
- Tires match and have substantial tread wear left.
- A "good" vehicle will need some reconditioning to be sold at retail.
Most consumer owned vehicles fall into this category.
FAIR:
- Some mechanical or cosmetic defects and needs servicing but is still in reasonable running condition.
- Clean title history, the paint, body and/or interior need work performed by a professional.
- Tires may need to be replaced.
- There may be some repairable rust damage
POOR:
- Severe mechanical and/or cosmetic defects and is in poor running condition.
- May have problems that cannot be readily fixed such as a damaged frame or a rusted-through body.
- Branded title (salvage, flood, etc.) or unsubstantiated mileage.
(Note that title history is considered an important part of condition!)
Tip Number Three – Know the Market – There are two main things that separate the professionals from the punters and the first is that the pros know the true market value of every car that comes to the block. There’s no reason why you shouldn’t have the same knowledge. Pick up a copy of the Kelley Blue Book for ten dollars and have all that knowledge at your fingertips.
Tip Number Four – Decide Your Price Before the Auction Starts – The second main thing that separates the professionals from the punters is that the professionals decide how much they’re willing to pay for a car and they STOP BIDDING when the price goes beyond their preset value. The weekend punters get caught up in auction fever and end up bidding themselves into a bad deal.
Tip Number Five – Don’t Make A Bad Deal – As obvious as it sounds, it needs to be said. You are in total control of how much you spend at an auction. If you do your homework and always walk away from the bad deals, then you’ll always get a bargain. Be patient and you’ll be successful.
If you need help finding a public auction, I recommend: Public Auto Auctions
Get your main resource now: The Kelley Blue Book Used Car Guide
Why not run a Free Vehicle Report at AutoCheck on your car now? You’re going to be selling it soon!
