The simple and obvious answer for why you would want to buy a used car from an auction is
price
. A car auction is a great place to buy a vehicle for a fraction of what it would cost to buy from a dealer or even a private seller, and at some auctions, there's a tremendous amount of vehicles for sale to choose from too.
Are cars bought at auction bad?
While some low-end auctions sell troubled cars, most cars at auctions are
high-quality used cars
. … They're also likely to get the cars repaired and cleaned up so they can sell them for more. However, it would be best if you still were careful when buying a car from a dealer that came from an auction.
Is it cheaper to buy car from auction?
Cars purchased at the Dealer Auctions are certainly cheaper (On Average) than
cars purchased at the dealerships themselves. This is especially considering if you purchase those add on products! However, Dealer Auctions are no joke, and there is a reason that this is a business and not a game.
What are the pros and cons of car auctions?
- Wide Selection. A lot of car auctions have an impressive selection to choose from, including economy cars, trucks, commercial vehicles, and SUVs. …
- Amazing Value. …
- Fast Turnaround. …
- Lack of Test Drives. …
- No Warranty. …
- Sketchy Background.
Why are auction cars so cheap?
Vehicles sold at online auto auctions are
very cheap
compared to those you can buy from dealers. This makes it easier for buyers on a tight budget to purchase the vehicles they need. … Most of the vehicles sold at auctions usually just have the wear and tear from regular use and in some cases, small scratches and dents.
How much cheaper are cars sold at auction?
How much do cars usually cost at an auction and what are the average dealer auction prices? We recently completed a study of the savings a buyer could expect at auction. On average,
you will save 20% or more
. That's a savings of $4,000 on a $20,000 vehicle.
Why you shouldn't buy a car from auction?
Buying a used vehicle from an
auction can be much cheaper than buying from a dealer
or a private seller, but it's also a much riskier way of buying a used car. You usually won't get a test drive, there's no warranty, and the vehicle could easily have a sketchy past.
What happens when you buy a car from an auction?
When you buy a car at auction,
you have to pay for it on the same day of the sale with cash or a check with verified funds
. The auction company will take care of the title and charge a dealer admin fee for it.
Why do dealers buy cars from auctions?
Dealerships sell these cars to
auctions to make room for newer cars and have a bit of a return to their investment
. Repossessed cars due to the owner not able to continue paying their loan. Some owners trade their Cars to banks and insurance so that they can get a newer one.
Why you should never pay cash for a car?
If you tell them you're paying cash, they
will automatically calculate a lower profit
and thus will be less likely to negotiate a lower price for you. If they think you're going to be financing, they figure they'll make a few hundred dollars in extra profit and therefore be more flexible with the price of the car.
How much do dealers pay at auction?
Dealers make a
profit of between 25-45%
. It is difficult to determine the exact mount dealers pay for the used cars. Most dealerships endeavor to sell the used cars within the market rate because buyers are more aware of the average price of the vehicles they are interested in buying.
Are police car auctions worth it?
Pros. Buying a car at a police car auction can get you an
excellent deal
. The prices are meager because the police want to remove those vehicles from their fleet as soon as they can so they don't have to manage the cars anymore, but also to recover some of the money owed by the previous owners.
How much can I buy a car for at an auction?
It depends on the type of auction you attend. If you purchase a car at an informal auction, you will find many vehicles with starting prices
as low as $300
. Typically, nothing sells for much more than $3,500.
How much do cars sell for at auction?
The amount depends on the auction location and also how much the car sold for. Typically, this will range
around $200 – $300
, but can be much higher for expensive vehicles ($10,000+).
How can I find out if my car was sold at auction?
- Check the auction house's website. Many auction houses list the selling price of vehicles from previous auctions.
- Call the auction that handled the sale of the vehicle. Most auction houses will tell you the amount the vehicle sold for. Sign up to receive newsletters.
