Evaluate how well a Vehicle At Auction meets your needs and compares to competing products
If you've completed step one you've identified what you need in a vehicle at auction and you've learned about the different features of vehicles at auction. While you were doing your research, you probably started the process of determining which features - and thus which type of vehicles at auction - will best meet your needs. Now you are going to continue that process, but in greater detail.
In this step you will
evaluate the vehicles at auction available on the market to determine how well they meet your personal needs and establish, by a process of elimination, an initial short-list of contenders. Then you will compare these short-listed vehicles at auction to find out which ones stand out from the competition.
Evaluate how well Buying Vehicles at Auction meets your needs
Your priority at this point in your evaluation is to find the available vehicles at auction in the market that best meet your needs. You can save a lot of time during this activity by quickly eliminating any vehicles at auction that are unsuitable because they don't meet your key requirements. For example, if you have a limited budget for this purchase then you can ignore any vehicles at auction that clearly exceed your price limit.
Purchasing vehicles through an auction can be a great way to save money and to get a great deal on a vehicle, but if you've never purchased a vehicle this way it can also be a little overwhelming.
Your top priority is to evaluate how well a vehicle meets your needs. If you want to use your vehicle mainly to commute, is it economical in stop-go traffic, does it have an automatic gearbox? If it will be used for the school run, does it have five doors (or more)? If you carry passengers for long distances, does it have good legroom in the back? It doesn't matter how marvelous a vehicle is, or even what a great bargain it may be, if it does not meet your most important needs it is not the vehicle for you.
There are a few different types of auctions that are available. The first is an online auction process. This can be a little daunting, because you will be purchasing the vehicle without actually seeing it in person or starting it. However, there are good deals to be found this way if you are willing to take the risk.
Public auctions, police and government auctions are all open to the public and a good place to start your search. Be sure to arrive early for the auction so you can walk around and examine each vehicle. It is unlikely that you will be able to test drive the car, but start it up and accelerate it. Check under the hood and look for major signs of damage.
Tip: Take along another person who is knowledgeable in cars and what to look for when buying a used car.
Do your research before you go to the auction house. It's good to look online, to compare prices and find cars that you will be focusing your search on. It's also a good idea to take price reference books along with you which will give you a good idea about reasonable prices for the vehicles that are up for auction. Some reference books to try are the black book, Kelley's blue book and the NADA guide.
It is important to do a title check on the vehicle before purchasing it. Often the auction house will have done one, but it is always a good idea to do your own. The auction house is trying to make the sale, so remember that you should not trust anyone when it comes to the title. Be safe and do your own search.
Tip: If you have a handheld computer you can do your own search. It's also a good idea to be in touch with someone at a computer who can do the search before you bid on the vehicle.
When it comes time to bid on the vehicles, things will happen quite quickly. Often the vehicles are brought in through a few different lanes which means that there are a few auctions going on at the same time. Go in with the set price that you are willing to pay for the vehicle. It is easy to get caught up in the excitement of everything and you do not want to overpay.
Remember that most auction houses will have a buyer's premium that you will have to pay. This can be a set price of a few hundred dollars, or 5% or 10% of the purchase price. Keep this in mind when you are bidding because often you can find yourself in a situation where you will end up paying more than market value once you add the additional buyer's premium to the total price.
Tip: Before you go into the bidding, decide on your top price. It is easy to get confused or excited and overbid. Remember that once you make a bid, you are committed to purchase the vehicle for that price unless someone out bids you or the seller declines the sale.
Generally when you purchase a vehicle through an auction house you will have a few payment options. Cash is always accepted as are bank drafts and certified cheques. However, personal cheques and credit cards may not be accepted so be sure to check payment terms before making your bids.
Another factor to consider are shipping costs if you purchase a vehicle that is not operational, or if you are using an online auction service. Remember that shipping prices may push the total price of your vehicle over fair market value.
Tip: When purchasing a car through an auction, remember - buyer beware. Use caution and good judgement.
When you were considering your requirements in a vehicle at auction it's likely that you singled out certain factors such as vehicle type, mileage, overall condition, age and cost as being of major significance. As with so many other products, the more features offered, the higher the price.
Buyz123 has created a checklist containing examples of major features; you can work from this checklist when evaluating how well various vehicles at auction meet your personal needs:
Features Checklist
Title Check
- Personal check
- Auction house check
- Online title check services
Pre-buy
- Inspect tires
- Inspect engine
- Start car
- Arrive early
- Test drive (if possible)
Auction process
- Multiple lanes
- Title lights (red, yellow, green)
- Buyer beware
What to watch for
- Tire wear
- Excessive paint damage
- Evidence of body work
- VIN # stickers
- Crooked or loose windows
- Excessive mileage
- Oil leaks
- Poor suspension
- Wheel damage
- Interior wear
- Rust free
- Door, trunk (boot) closure
Buyer's Premium
- 5% of purchase
- 10% of purchase
- Set price
Warranty
- Extended warranty
- Warranty against fraud
Price reference books
- Black book
- Kelley Blue book
- NADA guide
- Edmunds book
Purchase Options
- Cash
- Cheque
- Bank draft
- Credit card
VIN # Sticker
- Match number
- Door
- Trunk
- Hood
- Auto check
Contract
Bidding
Types
- Online auctions (open)
- Wholesale auctions (dealer-dealer)
- Public auctions (open)
- Police auctions (open)
- Government auctions (open)
- Insurance auctions (dealer)
- Salvage auctions (dealer)
Shipping
There are a lot of features listed here, and some of them may not be relevant to your particular requirements. So, work your way through the list and assess how each of these features impact on buying your vehicle at auction. You can then create a personalized checklist of the things to take into account.
Once you have finished evaluating the vehicles at auction available for sale in the light of your personal needs and arrived at a short-list of 'possibles' you are ready to progress to the next stage. This involves comparing the vehicles at auction one-on-one in order to find those that really stand out.
Evaluate how well a Vehicle At Auction compares with competing Vehicles At Auction
Comparing the items on your interim short-list, one to another, is an important part of the purchasing process - we all want to buy the best product we possibly can. So once you have established a short-list of vehicles at auction that meet your needs it is time to evaluate how well they compare in fine detail. This way you can assemble a select list of vehicles at auction that stands out from the crowd.
Questions to ask yourself:
Which vehicle at auction on my short-list offers the best value for money?
Which of these vehicles at auction best meet my needs?
Which of my short-listed vehicles at auction has the best warranty, if any?
Which vehicle at auction is in the best overall condition?
Which of the vehicles at auction seems of the highest quality?
Which short-listed vehicle at auction has the lowest mileage?
Which vehicle at auction do I like best?
By answering these simple questions, you are actually eliminating vehicles at auction that aren't absolutely right for you. This is an excellent time - if you haven't done so already - to evaluate how well your short-listed products measure up in the following areas: Physical Quality, Warranty Conditions and Accessories & Extras.
Physical Quality
You need to find an opportunity to examine the vehicle to check that it is truly suitable for you and your purpose. Examine the vehicle from the perspective of quality. How well has the vehicle at auction been maintained? Is the body free from rust and dents? Make sure you pre-inspect the vehicle at auction to make sure it runs well; if at all possible take it for a test drive - some vehicles at auction look great on the surface, but unexpected problems will show up when you finally get your hands on them.
Physical Inspection Checklist:
- Materials - quality, appearance
- Condition - all parts held together securely, good quality fittings, no loose components
- Proper fit of removable parts - easy to remove and replace, fit snugly
- Controls - visible, easy to use, accessible, clearly labelled
- Size - appropriate for surroundings and purpose
- Appearance - well finished, appropriate color, neat fittings etc
- Easy and comfortable to drive
Warranty Conditions
If some form of warranty (still) applies to the vehicle than bear in mind that similar products may be available with significantly different terms and conditions, and you want to get the best deal you can. Parts and labor are often covered under separate warranties, for different time periods; sometimes there can be a significant difference in the warranty offered with one model compared to that offered with the next model up. It is particularly important to investigate any conditions that might void a warranty, such as if you use repair workshops other than those recommended.
Warranty Checklist:
- Duration - check the specifics
- Parts, Labour, Mechanical, Electrical
- Exactly what is covered
- Exactly what is excluded
- Conditions or actions that may void the warranty
Accessories, Extras and Consumables
When evaluating similar products, it is a good idea to include a consideration of accessories in your assessment. It's also important to consider consumables, such as registration and insurance - some products have higher associated costs than others.
Accessories Checklist:
- Accessories - are any included?
- Upgrades - will the vehicle need an upgrade, what are the costs?
- Compatibility issues - will it work with your existing products, e.g. trailer?
- Registration - what are the time frames and costs?
- Consumables - how often and how much?
- Contracts or Service Plans - conditions, penalties, costs
- What else will you need to get the most out of the auction process and the vehicle after purchase?
Once you've worked through the Evaluation step you will have a final short-list of vehicles at auction that meet your needs and stand out from competing products on the market. It's time then to move on to the third and final step: Purchase.
Video Links
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