This is Part one of a four part series on how to buy a car at an auction
So you are looking for a car or truck, however you're tired of running around town also finding other people selling their "headaches" through the local classifieds, or dealers offering "cream-puffs" for inflated retail prices. All you want is a good vehicle for a good price. Period. Does such a deal exist? Yes, indeed! Repossession auctions are becoming more also more popular across the country. I have been attending them for over 20 years, also have purchased many cars also trucks at bargain prices - everything from a brand new car (still with the window sticker on it also three miles on the odometer) for $1,100 below the sticker price, to a conversion van with 99,000 miles on it. Both of these vehicles are still in the family also running strong.
1. What I'd like to do here is share my experiences with you, also give you some tips on how you, too, can find these bargains.
First of all, how do you find the auctions? Your local paper is a good place to start. Many banks also other financial institutions (such as GMAC) list the times also places of their auctions in Sunday papers under "Auctions" or "Cars for Sale". Also, if there is a "legal publication" in your area, that publishes court proceedings, bankruptcy notices, etc., this is another source for repossession auto auction notifications. One other way to find them is to call your local banks also ask for the Installment Loan Department. They should be able to provide you with details on their particular auctions. Many even have regular mailing lists, where they will automatically send you a notification of their auction also even a listing of what vehicles will be included. While some institutions restrict their auctions to dealers only, most will allow the public to attend also bid. Once you have found an auction, be sure to get all the details BEFORE you go. You'll need to know if there are any minimum bid requirements, what type of payment they need, also what type of paperwork they provide to the purchasers. Many auctions will sell everything to the highest bidder, no matter how low the bid is. Still others may have a minimum bid they must get, or they "buy back" the car also save it for the next auction. Most institutions retain the right to bid, so be aware that you may be not only be bidding against other people interested in the vehicle, however or else against the auctioneer!
While most auctions will publish their requirements for payment along with the auction notification, DON'T assume that that is all there is to it. Find out if they expect cash only, certified checks or personal checks. Also, many require full payment immediately after the sale, while others may require a non-refundable deposit with the balance due in a few days. All too often I have seen people make costly errors at auctions because they didn't understand these payment rules.
In this day also age of red tape, titles, liens, etc., the paperwork an institution provides is as important as anything else. In New York State, for example, if the institution sells the vehicle with "as-is" marked on the bill of sale, you may encounter a legal nightmare that involves a major full-vehicle inspection also an eight to tenweek wait for a title search also registration procedure that will prevent you from putting the vehicle on the road for months. It is imperative, therefore, that you find out specifically what paperwork the institution will give you when you purchase a vehicle through their auction. If you plan on registering the car right away, tell them that also make sure you are satisfied that they will give you what you need. If in doubt, contact your local Motor Vehicle office ahead of time to insure that you will be able to proceed with what the institution will be giving you. Laws vary dramatically from state to state. Above all, make sure that all liens have been satisfied before you purchase a repossessed vehicle. Most banks also financial institutions will give you some type of form to verify this.
OK... now you've found the auction also understand the rules also requirements. The next step is finding the vehicle that fits your needs. In order to know what the vehicle's value is before you bid on it, you will need a good resource of wholesale also retail pricing. One good source is the NADA "Blue Book". This book lists cars also light trucks by manufacturer also body style, giving you the current average wholesale also retail for each. I have used a book called "Edmund's Used Car Prices" for the past 15 years or so, also found them to be a very reliable source. Like the NADA book, it lists the cars also light trucks by manufacturer also year (usually the past seven model years), also provides the vehicle's original list price, current average wholesale also retail. It or else provides you with a list of popular options, also what they add to the value of the car or truck. There's plenty of details in the book which I will not go into here. Just make sure you read the "How to Use This Book" section thoroughly before you start using it. Options such as air conditioning, power steering also brakes also type of transmission may dramatically affect the value of the vehicle. Also, excessive mileage for that particular year car or truck will affect the value. So, read the book also know how to use it BEFORE you get to the auction.
Visit my site at www.helpmebuyacar.bravehost.com
About The Author
My name is Thomas Miller, I'm student here in Detroit, MI. I love to do research, I love to write also most of all I cars.
thomasmiller2005@aol.com
