Buying cars at auctions is not something we regularly do. And getting the car of your dreams by winning a bid is one option not many of us are willing to choose. That means it is completely understandable that we don’t often get to know what a car auction is. But if you’re willing to choose this path to getting your own automobile, we share with you the following tips and useful information. Read on.
What is a Car Auction?
A car auction is usually a privately owned company that sells vehicles — usually used cars — by auction, meaning that buyers need to make a bid for the automobile of their choice. Anyone with the highest bid takes the car home. Because vehicle auctions can be fairly common sight in some states, government regulations are sometimes put in place to protect the interest of buyers and dealers.
Car auctions are different from regular dealerships in a way that auction dealers usually collect their vehicles from finance companies, fleet operators and many other private owners. And because auctioned cars are usually privately owned and mostly well-maintained, you’re more likely to chance upon a good make and model you bid for.
To give you enough time to inspect the automobiles, these cars are subjected to preview days before the actual auction begins. You can even inspect one up close like looking under the bonnet or sitting inside it. However, unlike regular dealerships, you can’t do a test-drive a car for auction. This means needing more time to research on the vehicle before you even place a bid.
What You Need to Know Before Bidding
Before placing a bid, there are some important things that you might need to know. For example, once you win a bid and the car is awarded to you, there is no turning back. You might be required to pay the deposit immediately, depending on your agreement with the auctioneer. You may even drive the vehicle on the same day, again depending on the terms.
Although auctioned cars come with no statutory warranty, what’s good about them is that you can be sure that each vehicle is free from any financial encumbrances. Thus you won’t have to worry about getting your car repossessed by any financial institution in the future. It’s a clear title for you to begin with. And within 48 hours after the sale, the auctioneer is required to hand you over the necessary documents, most importantly the PPSR Certificate on the Vehicle Identification Number.
Although the one major setback of auctioned cars is that they do not guarantee a flawless history of good performance and regular maintenance, you can always check the car history report. As what David Campbell, former NSW Government’s Minister for Transport and Roads, said, “There is a black market for purchasing written-off vehicles at auctions, then using stolen parts to rebirth and register the car, to be sold for a tidy profit.”
Such proliferation of black markets has eventually resulted in the legislation prohibiting the re-registration of cars considered as repairable write-offs. But nonetheless, we as buyers should always be in the safe side, not letting our guard down, always double-checking the facts before we even place our bid for that prized automobile.