In almost every city in the country, car auctions are held on a regular basis. While many of these auctions are designed for car dealers to come and fill up their lot with cheap stock, some can be attended by the regular public as well. Whether you're looking for a personal vehicle or an investment opportunity, a car auction is something to keep in mind.
Now, are car auctions for everyone? Certainly not. They are not as well attended as a run of the mill car lot, but there are plenty of people that know about them and they are there for the same reasons. The difference is, they have done the research to determine whether buying a car at an auction is a good idea or a bad one when it pertains to their own needs. You need to do the same before heading off to the
car auction to place a bid. There are a number of pros and cons to buying cars at auctions and it's always a good idea to go into any new venture with your eyes wide open.
Pros
One of the biggest advantages to buying cars at auctions is avoiding the dealership mark-up. No matter how much haggling you do, a car dealer is going to make a certain amount of profit from a sale. At a car auction, you bypass this mechanism and get the car for as close to a wholesale price as you're going to find. They are perfect for car buyers who have a limited budget.
Car auctions are also an excellent place to find rare collector's vehicles you wouldn't likely find anywhere else. Knowing that a bidding frenzy could break out at any time, collectors like to sell their antique vehicles at auction to get the best potential value for their automobile.
Cons
Though you're taking a chance anytime you buy a car anywhere, buying a car from auction can be an especially risky venture. Most reputable auctions will be up front about any problems with the car, but most sales are final and you'll have little recourse if the car you buy isn't up to snuff.
Along similar lines, cars bought at auctions don't come with any form of warranty, meaning what you see is what you get and that's the bottom line. The price factor can often overcome this lack of a safety net, but you need to understand that if you get stuck with a lemon, you're probably going to have to eat the investment.
