Car at Auction: Research your needs

In order to end up with the cars at auction best suited to your needs, you have to clearly understand what you are looking for and what options are available to you. This is done by researching in two areas.

Firstly, you research the market to find out what kinds of cars are available at auction, familiarizing yourself with the different features, styles and price ranges etc. Secondly, you examine your own unique requirements in a car auction.

Research the market: Car Auction essentials

There are different types of car auctions and each auction offers cars in different sizes, models, and colours, and matters are further complicated by the vast array of accessories, music systems, gadgets and options that are fitted.

The first part of the research step is to investigate just what's available in the market for cars at auction. The range of options can seem daunting, but you can make a good start by understanding the following major features:

Auction Types: Wholesale auctions usually are transferring cars from dealer to dealer, Online auctions selling cars anywhere in the country, Public auctions open to anyone, Police, government or military auctions and insurance or Salvage auctions. If you are interested in classic cars you'll also find collector car auctions.

Car Types: You'll find almost everything from two seater sports, compact, family and luxury sedans and station wagons through to sports utilities, multi-purpose vehicles and pick-ups. However you may not find the specific make and model you desire but there will be vehicles that get at least close to your specification.

Inspection: Different auction houses allow different degrees of inspection. Visit an auction before you buy to see how the whole thing works and to learn just how much probing you can do.

Payment: Work out how much you can afford and remember to find out what the buyer's premium will be. Also research the payment technique as the auctioneer may demand full payment in the form of a cashier's cheque at the “fall of the hammer” or within 24 hours.

Research your needs: Questions to ask yourself

Now it's time to determine what your requirements are in a car at auction. For example, will you use the car only as a second vehicle or will it be your only form of transport?

You can start this process by considering the following questions - as well as any others you think of yourself - and recording your answers.

Have I bought a car at auction before?
	If you have previously purchased a car at auction, work out what you did or didn't like about the car and the buying process. You may be hoping to repeat the process to do better this time, or even trying to avoid any particular aspects of the purchase process that you found to be negative.

What type of car am I looking for and why?
	Consider everything that you will use a car for and justify to yourself that a specific model is necessary. You need to decide if the car will be used as a family runabout or a long distance cruiser. Perhaps a camper van is the best solution to your vacationing needs.

What running costs can I afford?
	Just because you can buy a limousine cheap at auction doesn't mean that you can afford the replacement transmission that it will need in two months time. Consider fuel consumption, insurance, taxation, replacement tyres, regular servicing and common component costs.

What repair and replacement work am I willing to take on?
	Many auction cars are high mileage and may need anything from replacement brake pads to a new engine to make them genuinely roadworthy. Decide where you will draw the line so that you can dismiss cars that will require more work than you want to handle.

Can I spot a lemon?
	Be honest. If you are not experienced in the field of automobile engineering, it may be worth finding a friend who is willing to accompany you to the auction and to advise you.

How much do I want to pay?
	Know car values by trade guides, if you can get your hands on them, as well as online sources and general observation. Don't forget the buyer's premium which can be 5% or 10% in addition to the bid price.

Understanding your needs is the key to a successful purchase and you can revisit your list of needs at any time during the buying process.

Once you complete this Research step, having informed yourself about the essentials of purchasing cars at auction and identified your needs, you are ready to move on to the next step: Evaluation.

Video Links

How an Auction Works - Info
Leslie and Leigh Keno head to Pebble Beahc to explain the ins and outs of vintage car auctions. (10 m 27s)