Online auto auctions can get you a bargain–no doubt–but due to the economy’s stagnation, amongst other factors, the popularity and competition of government auctions has grown. You have to go against taxi companies that want old cruisers for cabs, brokers looking to ship old school buses and truck overseas to poorer countries for public transportation, and more. These people are sharks, who go to government auctions frequently, know what they should pay, and can spot a lemon easily. If you’re not careful, you can likely buy a car at a government auction for more than retail.
Whether you prefer to go to them live, or use online auto auction software like the GSA auctions software, there are some definite things you need to be wary of.
1. If You Can’t Afford the Repairs That May Arise, Think Twice Before Buying.
Buying something “as is” means just that. You’re going to inherit whatever problems it posses. If you lack the tools, knowledge and skills to handle the repairs that will surely come from older, more thoroughly used cars, then perhaps you should think twice about getting the car. It could wind up costing you more than anticipated. Instead, look for newer cars. Car auction software offers plenty of choices, and while you may pay more for a newer vehicle when you just want cheap transportation, in the long run you’re paying less.
2. Check the VIN.
This is perhaps one of the best benefits of using online auto auctions. You can quickly copy and paste a vehicle’s VIN number, and do a quick background check on it. Often times, surprising results will let you know why it’s going so cheaply. After all, if it’s too good to be true, it usually is.
3. Don’t Get Overly Competitive With the Bidding.
This is true for all auctions, and not just online auto auctions. Our competitive sides take over, and we get carried away during the bidding, which leads to spending hundreds more than the car is actually worth. To avoid this, avoid pinning all your hopes on the one vehicle–walk away after a while. It’s much better to go home empty handed than with an expensive clunker.
Online auto auctions are great. You can get a great car for a great deal, but the opposite is true as well, which is why you have to be a little careful when shopping with an online auto auction. If you have any questions about these online auto auction tips, feel free to ask in the comments!