One possible way to save money when purchasing a used vehicle may be to buy one at a car auction. However, there are some things to be ware of when shopping at an auction.
The main advantage of purchasing a car at auction is that you will be able to get a much better price than buying at a dealership. In many parts of the country there are auctions each week. So if you don’t find something you like, then you may only need to wait another week or so to possibly find something that fits your needs.
One of the main disadvantages of buying a vehicle at auction is that you purchase it in “as is” condition. After your bid has been accepted, then you own the vehicle and are responsible for any repairs afterwards. There are no warranties on vehicles from auctions. You may also not be able to look it over and test drive it as much as if you were shopping at a car lot. When shopping at a car lot, you may have more of a chance of considering the purchase. At an auction, you have to bid and finalize the purchase on the day of the sale.
Another thing to be aware of when purchasing a vehicle at auction is to make sure the title is clear on it. If it was repossessed or confiscated, the seller may not have legal rights to sell the vehicle. If you don’t have a clean title, you will not be able to register and insure it in your name until you get it cleared up.
Also, you will need to have the full amount to pay for the vehicle at the time of purchase. When purchasing through a car lot or dealership, you may get comparable or better interest rates than obtaining a car loan from a bank or credit union. If you need to borrow money to purchase a car and get a car loan, thne you will be able to pay a down payment and have monthly payments for a certain number of months.
If you are looking for a car auction in your area, check the local newspaper in the classified section for ads for car auctions. Also check the internet for press releases or online articles about online car auctions.
Purchasing a vehicle at a car auction may be a good way to get a great deal on a used vehicle, but there are both pros and cons to take into consideration.