People say that for every good point, there is a negative one. That of course applies too to the purchase of vehicles at a car auction. Let’s take a look at what they are:
Pros #1: Big savings
It is widely known that the prices for some cars at a government auction start at $100. Just imagine if no one else wanted that car, it would be yours for a mere $100! But even if you have to bid for it with the others who are interested, you would still save up to 95% off the original value. That’s surely a great savings for you wouldn’t be able to find that price elsewhere, definitely not as a used car dealer. These vehicles are able to be offered at such attractive prices because most of the time, the auctioning party’s concern isn’t making a profit or generating big revenues but simply getting rid of the vehicles that have been seized etc. As long as they get something back to cover the cost of repossession, they are happy enough.
Pros #2: Vast variety
It isn’t just sedans that are put up for auctions. There are also trucks, vans, SUVs and even luxury vehicles. It will definitely be a steal to be able to get a luxury vehicle from these auctions, for they will be sold at such a small fraction of their worth. You will not only be spoilt for choice at the type of vehicles but there will also be a great choice of models, brands, builds, transmissions and colours for you to choose from. If you are looking for a forklift or a tractor, check out the list of items being auctioned off; you’d never know when you can find one of these there too.
Cons #1: Competition equals potentially expensive car
You wouldn’t complain about competition because that is just a small price to pay for such huge savings. But what if you aren’t quite aware of the value of the vehicle and bid and bid with the rest? The price could even go to more than what the car is worth! It is good if you didn’t win that bid but if you had, then it would be a much wiser option to get that car from a car dealer instead.
Cons #2: No warranty, no guarantee
Unlike buying from used car dealers who usually give you at least a month’s warranty, these vehicles purchased at a car auction doesn’t come with any. You don’t know where the car came from, how long it has been sitting idle and how many owners it has had. You could even have trouble with the ownership if it was one that has been stolen or illegally smuggled into the country.
It is wise to know more about what you are bidding for and to bring along a mechanic to perform basic assessments of the car at the auction. Then, enjoy your cheap new ride!