Should You Buy A Car At An Auction?

Older readers will remember a time when buying a used car meant looking in the local newspaper for private party ads. The pickings were often slim and the best deals were snatched up quickly. The earlier you scanned the newspaper’s ads, the better your chances were for uncovering a gem.

Today, prospective buyers have a lot of other options, including auctions. If you have never purchased a vehicle through this process, it may seem intimidating at first. But, once you pull back the cover and learn how they work (including the applicable regulations), they’re not nearly as mysterious as they might appear. Below, I’ll briefly describe a few types of car auctions. Each of them can offer compelling deals on reliable vehicles.

Government Leases And Property

To a neophyte who doesn’t know better, these events can seem unappealing. They have an undeserved reputation for selling vehicles that have been used in drug busts, sting operations, and other criminal activities. As a result, a lot of people think that each one that is sold on the block is blood-stained and riddled with bullet holes.

Let me clarify the types of vehicles sold at government auctions. The government maintains thousands of auto leases for their employees. When those leases expire, the cars are sold. Keep in mind that the majority of these employees aren’t DEA agents chasing hardened drug runners. Often, they’re IRS agents, contractors, or other “low key” personnel. Also, the IRS routinely seizes property from people who owe back taxes. At some point, that property is placed on the block. And usually, they’re not riddled with bullet holes.

Estate Sales

Think of these auctions as upscale garage sales. Typically, someone has passed away and their assets are being sold to the highest bidder. The advantage is that most people will never hear about them, reducing the number of competitive bids. The drawback is that most estate sales won’t have large car inventories (after all, who actually needs 100 vehicles?). So, you’ll have one or two chances to snag a potentially attractive deal.

eBay, Yahoo!, And More

eBay changed the automotive landscape. When eBay Motors was launched, purchasing a car online was still a novelty. Today, thousands of people visit eBay, Yahoo!, and other online auctions to find dependable used vehicles at an attractive price. One of the most significant advantages of using these online marketplaces is being able to do so from the comfort of your living room. Once you win the bid, you can even arrange to have your new vehicle shipped directly to your doorstep.

If you’re thinking about buying a used car, consider doing so through an auction. Government property, estate sales, and online resources such as eBay Motors represent a potential treasure trove of attractive automotive bargains.

Check out How to Time your New Car Purchase

Tags: Car Auctions, Car Buying

This entry was posted on Wednesday, January 21st, 2009 at 4:28 pm and is filed under Cars. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.