Getting the most out of a car auction often means having the right instincts. This is often a matter of experience. The more auctions you’ve attended, online or in real life, the more experience you’ll accumulate, and the more familiar with the process you’ll become. Dealers can accumulate this experience quickly.
But on top of the knowledge you’ll get from simply participating in the process, there are a few choice tips that might help even experienced buyers and sellers get more from it.
Research Market Trends and Vehicle Demand
As you enter the auction, you’ll need to understand your market. What’s a good price for the vehicle in consideration? Which models are you likely to be able to sell? The deeper your knowledge, the easier you’ll find it to identify the best deals.
Of course, since the market is constantly evolving, you’ll need to update your knowledge frequently. Pay attention to industry reports, auction data, and the behaviour of your own customers.
Thoroughly Inspect Vehicles Before Bidding
By inspecting a vehicle before you buy it, you’ll be able to avoid investing in a liability. Look for dents, frame damage, and other signs of neglect. You don’t have to be an expert mechanic yourself – but some knowledge of the more common warning signs can help you to avoid a bad investment.
If you don’t, then you could be forced to pay for repairs after the sale. This will ultimately eat into your bottom line. If you’re unsure of what you’re looking for, or unable to attend an auction in person, then you might hire a professional to inspect the vehicle on your behalf.
Know Your Budget and Set Limits
It’s easy to get drawn in by the bidding process, and end up paying more than you’d hoped. Set yourself a clear bid limit. Make sure that you factor auction fees, transportation, and repairs into your overall budget. This will give you the security you need to bid with confidence.
Build Relationships with Auction Houses and Sellers
It’s essential that you understand the car auctions near you, and the people who run them. Effective buyers at auction tend to forge deep relationships with the other participants in the process. If you’re on good terms with the auction house, and with other sellers, then you might learn about particular opportunities before they arise. You’ll also learn about when auctions are likely to take place, and what bid is likely to be accepted. You might also be approached directly by sellers, who might want to offload a vehicle without the cost and hassle of a formal auction process. This can drive down your costs considerably.