If you’ve ever purchased a car or you’re currently in the market for a new vehicle, I’m sure you are perfectly aware of the steep price margins that dealerships in your town – and up and down the country for that matter – are offering. If you’ve read the title, I’m sure we’ve got your attention. Reading this article will give you an insight into how you can save money when buying a car.
So How Do You Save Money When Buying a Car?
Car auctions are the answer you’re looking for. In a general oversight, car auctions do present potential car buyers with a cheaper alternative to purchasing a vehicle at the steep prices that many car dealerships demand or through private sales that are listed by an individual vehicle owner.
Vehicle dealerships will often stock up their showroom floors with auction-bought cars, cleaning and making any repairs where necessary before selling them off for a significantly higher price tag.
By purchasing a car through an auction, you’re effectively bypassing the aforementioned process that ensures dealerships a substantial profit. Purchasing your own car at an auction alleviates any additional value that you would definitely find when purchasing a car from a private owner and from a vehicle showroom.
It is worth noting that if you do decide to purchase a car at an auction, you will have to partake in the auction house fee, which is typically a form of commission. This sum will usually hover around five percent (plus VAT) of the final sale price. Fortunately, you will always be presented with the opportunity to check how much the sum will actually be. It is vital that you calculate this value into your overall spend so that you’re not diving headfirst into a particular auction that you have not budgeted for.
Some important things to consider before attending a car auction
If you find a ridiculously cheap deal on a car that – if found in a dealership – would be priced at double, maybe even triple the asking price then it probably is too good to be true. While you might think you’ve committed the greatest robbery of the 21st Century, that car could be riddled with hidden issues that will reveal themselves later down the line, problems that could be very costly indeed.
Purchasing an ex-fleet vehicle is often a smarter decision than investing in a car that is listed by a private seller tagged with ‘sold as seen’. A thorough HPI check is another helpful tool that regular purchasers use. By running a check you can avoid any costly purchases on the vehicle in question.
