If you’ve decided to try and use repo auctions to get a new car then you may be surprised at the level of competition you’ll face. However, with the right mindset and knowledge there is no reason why you can’t come out on top and get a great car for a fantastic price. Here are some things that you need to remember when going to repo car auctions.
To begin with you need to be aware of exactly what you’re buying. If you don’t have a chance to take the car for a test drive and get it inspected before you buy then you could be taking a huge risk because there is often no comeback for the buyer. This risk is increased even further if you’re thinking of purchasing a repossessed boat, the likelihood water testing the vessel will be little or none. If the auction listing says it’s being sold “as is” and doesn’t come with any sort of guarantee then you need to be especially careful when buying. Remember, in most cases the seller will have covered themselves legally and hence you won’t be able to get the money back once you’ve bought the car.
You also need to remember that on top of your bid you’ll have to pay extra to the auction house. Make sure you know exactly how much you’ll have to pay because sometimes it’s a fixed fee while other times it’s a percentage. Always factor this extra cost into your budget before you start bidding and make sure you don’t forget it in the heat of an auction! Many beginners to repo auto auctions do forget that there’s an extra fee and find they don’t have enough money once they’ve won an auction.
You should also factor in the extra cost to your decision as to whether you’re getting good value for money. There’s no point getting a car for $500 under the market value if the extra cost is going to be $600. It can be hard to work out figures while an auction is going on so you need to write them down before the bidding starts.
Sometimes a repo car auction will have a viewing session several days before the event but in some cases you’ll only be able to view the cars on the day. Either way, the earlier you get to the viewing the more chance you’ll have to look at the different cars available and make a judgement of their condition. Viewings can get busy quickly so the less people you have to compete with the better.
