All You Need To Know About Car Auctions

Buying or​ selling your car in​ an​ auction can give you a​ headache if​ you do not have any idea what you are getting yourself into. Let me give you some answers for​ the​ most frequently asked questions about auctions.

What is​ an​ Auction?

An auction is​ one of​ the​ first means of​ doing business and​ profitable exchanges. History books show that art, land, crops even people were being auctioned off in​ the​ past. Hey, even the​ Roman Empire was auctioned.

What about Automotive Auction?

An auto auction is​ the​ ideal environment for​ car dealers to​ remarket their cars. This is​ the​ perfect opportunity to​ make the​ big bucks and​ get that great sell that you have been waiting for. the​ true market value of​ the​ vehicle is​ also determined once a​ vehicle is​ put on an​ auction block.

Auto auctions exist to​ market cars. Its main objective is​ to​ make the​ deal fast and​ accurate. it​ serves as​ the​ impartial trading floor which offers security and​ integrity to​ the​ participants. it​ also varies in​ size depending on the​ number of​ employees, cars or​ how big the​ area they occupy.

Auto auctions may also offer different services like, repairs, reconditioning, financing, arbitration and​ a​ host of​ other services.

How do I participate in​ an​ auto auction?

As there are a​ number of​ auction houses available, choose a​ reputable auctioneer to​ buy or​ sell your car to. Keeping in​ mind the​ kind of​ car you want to​ sell or​ buy, the​ geographical convenience and​ the​ services the​ auction operators offer, these factors will determine the​ auction you will want to​ participate in.

Be also aware if​ the​ auction is​ an​ open or​ closed auction. Open auctions, as​ the​ term suggests, are open to​ any registered dealer. Most auctions are open but may be tailored to​ specific kinds of​ vehicles like car fleets, rentals, repossessed units or​ special dealer consignments. a​ closed auction is​ limited to​ specific participants.

It is​ also advised to​ check the​ websites of​ the​ auction houses you want to​ participate in. it​ is​ a​ good idea to​ request for​ an​ auction tour. This will give you the​ chance to​ inspect their facilities and​ operations. This is​ also the​ best time to​ ask and​ clarify details such as​ the​ biding process, services offered and​ other questions which comes to​ mind when you are inspecting the​ lot.

Once you have decided which auction house to​ participate in, get the​ necessary paper work done and​ be sure to​ have an​ identification card and​ a​ bidder’s badge. if​ you are buying, get a​ hold of​ the​ ‘run list’, which is​ a​ computerized list of​ vehicles being auctioned off on a​ specific date, the​ commercial consignor and​ similar information. it​ is​ also a​ good idea to​ get a​ sales lot parking plan. Vehicles are typically grouped and​ the​ parking lot plan will help you locate which lane to​ go to.

What is​ a​ ‘floor price’?

Also known as​ the​ ‘reserve’ or​ ‘low’, the​ floor price is​ the​ lowest price the​ seller is​ asking for. if​ the​ price is​ not met while on the​ block the​ seller can lower it​ to​ attempt a​ sale. if​ the​ floor price is​ still not met, the​ vehicle can be placed in​ the​ “if bid” where the​ bidder agrees to​ buy the​ vehicle if​ the​ seller agrees to​ his offer in​ a​ specific period of​ time.

How do I evaluate the​ vehicles?

There are usually pre-selling inspections where you can appraise the​ vehicles that are being auctioned off. Each vehicle has a​ windshield marking where information like the​ seller’s name, model of​ the​ vehicle, mileage, run number and​ lane assignments are posted.

For a​ fee, post sale inspections are also available in​ some auction houses, where auction mechanics are available to​ check the​ engine, air-conditioning, brakes, frame, transmission and​ the​ rear end.

It is​ also wise take advantage of​ the​ free arbitration services which protects the​ interests of​ both the​ buyers and​ sellers of​ the​ vehicles. You can also test-drive the​ sold car if​ you present a​ valid I.D. to​ the​ arbitration department. Most auction houses have test tracks, so make use of​ this service and​ be assured that you got your money’s worth.

What happens after I won the​ bidding?

After your purchases have been completed, go to​ the​ front office of​ the​ auction house and​ finalize your transactions by making the​ required payments. the​ title is​ then transferred to​ your name. a​ gate pass will be issued for​ your purchased vehicle.

What are Internet Auctions?

Auction houses are taking advantage of​ the​ present technology available to​ them. Cyberlots or​ cyber auctions allow sellers to​ post their vehicles on the​ net, including photographs and​ information about the​ specific car they want to​ sell. Most cyber auctions have limited time frames.

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