According to industry figures, every week in the UK over 12,000 vehicles are sold at auction. Out of these thousands of sales, statistics show that only around 10% are purchased by private buyers keen to drive away with a bargain so why don’t more of us consider buying from auction. If you’ve ever considered how much cheaper buying a car at auction could be, wondered whether or not car auctions are worth it, or just thought about how much money you could save if you were to buy your next car from an auction then read on.
Are car auctions worth it?
Providing you carry out some all-important homework first, purchasing a car at auction can be an excellent way to acquire a used car at a low and affordable price. If you can keep a clear head and know your own mind when it comes to the car you’re hunting for, then auctions are worth considering. You may wish to consider the benefit of a professional auction buyer such as Car Auction Buying Service who will guide you through buying from auction and help you get the most value form your purchase.
Car auctions are regularly used by independent traders and car dealers to acquire suitable stock to sell. When buying a car at auction, the price can be cheaper than purchasing in a private sale or from a dealership because you are effectively cutting out the middleman. However, you must be knowledgeable when it comes to both cars and auction procedures before you consider buying from auction. Having a knowledgeable expert will ensure you avoid the auction pitfalls.
It’s good advice to leave your money at home the first few times you visit a car auction and concentrate on getting a feel for things. Try attending three or four times before engaging in an auction and keep your eyes and ears open. Once the auction process begins to feel familiar and you become comfortable with the rapid rate of bidding, you’ll feel far more confident about placing a bid and driving away with a bargain. You may find that the larger auction houses are for trade buyers only. A specialist company such as Car Auction Buying Service will do all the hard work for you. This will ensure you avoid making any expensive mistakes by purchasing a vehicle that isn’t worth the money you paid for it.
How much cheaper are cars auctions?
Car auctions definitely represent a cheaper method of purchasing a used car, particularly when compared with buying through dealerships or private sales directly through an owner. Dealerships will purchase their own cars at auction before fixing and cleaning them up as necessary, and then selling them on at a higher price tag. By purchasing directly at the auction stage, you’re effectively buying your car before any margin is attached by dealers.
However, it’s worth bearing in mind that if you do buy a car at auction, you will have to pay auction house fees in the form of commission. This fee will vary but is usually around 5% (plus VAT) of the final sale price. Always double check exactly how much this fee will be and always be sure to deduct this value from any saving you feel you’d be making on your purchase. Buying through an auction specialist will not only save you money on your vehicle but on the auction fees as well due to the volume of vehicles they buy each month.
While you may find a used car for a significantly cheaper price that you expected, you must remember that often if something looks too good to be true, it probably is. While you may think you’re driving away with a bargain, hidden problems could prove very costly further down the line. There are, of course, ways to reduce your risks, a car buying specialist such as Car Auction Buying Service will have the experience when looking at potential vehicles to bid on and have the knowledge to know what to avoid and who the reputable sellers are.
Why do cars go to auction?
Cars end up at auction for a variety of reasons. While you may have seen or heard about well known auctions for vintage and rare classic cars, for the most part the cars at auction are the kind driven everyday by your average motorist. Whereas the majority of vintage car auctions are arranged on behalf of a private individual, most vehicles up for auction originate from larger national chains, finance houses, lease companies etc.
Some of these auctioned cars will be ex-rental vehicles, while others could’ve been part of a firm’s fleet, acting as company cars to its employees. Part-exchange vehicles are also often found at auction too, mainly when condition, age and mileage are beyond the specifications required for a car dealer’s ‘approved used’ scheme or if a dealer is not allowed to sell non franchised stock.
Are car auctions good?
If you purchase your car through a dealership you’re typically covered quite well, but this isn’t the case with auctions. Buying cars under the hammer carries the ‘buyer beware’ rule.
Unlike buying from a dealership, you won’t get to test drive the vehicle that’s being auctioned. Most of the larger auctions such as BCA only trade online so you would not even see the vehicle you are buying in person. In this case you would need to rely on the high resolution photographs supplied by the auction house along with the mechanical and cosmetic reports. At some of the smaller auctions you can attend in person however the choice of vehicles would be smaller. Cars will be unlocked and started just before the auction takes place, but it will be up to you to watch out for any warning lights appearing on the dashboard or discoloured exhaust fumes coming from the car.
You’ll also have to possess a good ear to listen to the engine and be able to recognise if there’s any potential mechanical issues.
While auctions can offer you an opportunity to snag yourself a bargain, there’s a good chance that some of the vehicles up for sale may be cars that dealers are keen to be rid of. Always remember that if the worst comes to pass, you could end up having to resell the vehicle at a loss or pay the price of costly repair work. Employing a car buying specialist such as Car Auction Buying Service could potentially save you thousands.
Professional car dealers and auto traders purchase cars in bulk at auction because they’re able to enjoy the advantage of auction house discounts to which individuals aren’t privy. Bulk buying at discount allows them to absorb any losses caused by a bad car in a lot and still make a saving at auction. Such a loss, while affordable to dealers, will have a much harder impact on an individual buying a car at auction. Not only will you not benefit from auction house discounts, but you’ll face the house fees that will be subtracted from any potential savings you may make in comparison to purchasing a car through more traditional methods. Buying through a company such as Car Auction Buying Service means you can enjoy discounts on the auction house fees as well as their knowledgable expertise when choosing a vehicle.
What price do cars sell for at auction?
Just like cars at dealerships, cars at auction sell for a diverse range of prices depending on make, model, age, specification and condition. Cars often begin at auction for low prices but can rapidly increase in price with the fast-paced auction-style bidding. It’s easy to get caught up in bidding when it’s increasing at £100 at a time, but this soon adds up. Once you’ve gone over your limit, it might be tempting to continue bidding, so always stick to a maximum bid to avoid paying over the amount a vehicle is worth and stepping outside your affordability. Allowing a specialist car buying company to bid on your behalf means you don’t get caught up in the hype and they won’t bid beyond your maximum.
Engage a professional buyer
If you are considering buying a car from an auction, it is often beneficial to engage a professional car buying service or car broker. A professional car auction buying service will have the knowledge and expertise to help you get the best deal possible. They will also have the contacts and connections to ensure that your car is delivered safely and securely.
Car brokers can provide a range of services depending on what you require, such as inspecting the car before you buy it, arranging finance, and helping with paperwork. Some companies may even be able to arrange for delivery of your car from an auction house, such as British Car Auctions.
Engaging a professional car buying service is one of the best ways to ensure that you get the best deal when buying a car at auction. They will be able to advise you on the various aspects of buying a car at auction, as well as helping you navigate the process and ensuring that everything runs smoothly. You can even buy a car online through these services in some cases. In conclusion, engaging a professional car buying service or car broker when purchasing a car from an auction is always a good idea. It is an investment that can save you time and money in the long run, and can help to make sure that you are getting the best deal possible.
Help to buy right!
Here at Car Auction Buying Service, we’re dedicated to finding the very best deal at auction for you, attending events arranged by British Car Auctions, Manheim, G3 and Aston Barclay, plus many more. We assist in bidding and provide the support you need to buy successfully from the auction; without the need for you to travel across the country.
Thanks to our multiple trade accounts we pay much lower buyers premiums compared to private buyers. We then pass that saving on to you! We scrutinise the cosmetic reports and mechanical reports that accompany each vehicle. Our team can also provide trade price warranties and deliver your car to any location in the UK. To find out more, or to inquire about buying your next vehicle from a nationwide or local car auctions, please give us a call on 0121 769 1729. Alternatively, you can fill out our online form.
