Industry figures suggest that at its peak there are more than 20,000 cars sold through car auctions each week in the UK alone. If you’re thinking to yourself: “is it worth buying a car at auction?” then this useful guide is your reading material for the day.
Why are cars sold at auction?
As the figures suggest, cars are continuously being put through auction processes, but why?
Well, a lot of cars make it to the auction house from dealerships returning former lease vehicles or from part exchanges they may have taken in which are not the brand they normally retail. Finance houses will sell vehicles that were on a finance agreement such as a PCP. This gives the customer the option to return the vehicle before it’s even 3 years old, beginning a new arrangement. They can also find their way thereafter companies decide to clear out their company fleet (BMW and Mercedes regularly have auctions to dispose of stock) or simply from a private seller who has decided an auction is the easiest and most profitable way to sell.
The point of an auction is that you can dispose of excess stock. For example, any cars that have been at dealerships for too long make themselves to the auction. Typically, these cars are sold for a much lower price than they would at a showroom or dealership; which is a fantastic opportunity for car buyers.
Are auction cars cheaper?
Car auctions certainly do represent a cheaper way of purchasing a used car. Especially in comparison to the inflated prices you find with franchise dealers and independent traders. When you purchase at an auction, you’re buying a car prior to the additional margins that are attached by car dealers as soon as they hit the forecourt.
The only add-on catch about buying a car at auction is that you will have to pay auction house fees in the form of a buyer’s premium. This will vary but it’s only around 5% (plus VAT) of your final sale price. Using a car auction buyer is even less!
What price are auction cars?
Unless you’re at a luxury car auction, the vehicles don’t tend to be anything fancy. They’re just like the cars sold anywhere else.
Cars at auction all vary in price, make, model, age, and condition. You’ll find the cars that often begin at a much lower price can quickly increase, and before you know it the price has skyrocketed.
Once you’ve gone over your limit, as tempting as it is to keep on bidding; it’s sometimes worth withdrawing and assessing your options.
Is it worth buying a car at auction?
Definitely yes! We think that purchasing a used car for a significantly cheaper price than dealerships offer is an exclusive benefit
With our guidance, you’ll be made aware of any mitigating circumstances. This ensures that you’re getting the best service possible for your budget. Using our service you not only save on the vehicle itself but also on the auction fees or buyer’s premium as our trade rates are much lower than those of the general public. You would save more on these fees alone than what it costs to engage our services!
We can also help with warranties too which are available at trade prices saving you even more money!
For further information, get in touch with us via phone 07999 728009 or alternatively, fill out one of our contact forms.
