car auctions good or bad

Car Auctions - Good or Bad?
By Paul Fryatt

Although there are some very good deals to be had at car auctions, there is also
some things that you must know and do if you are attending an auction for the
first time because when you are unfamiliar how an auction operates you can
make a few mistakes that can be very costly, but armed with some
foreknowledge and providing you follow it - you should be okay.

Most people’s experience of buying a car normally goes like this:- See the car
hey like in the local paper, go round the seller’s house, view the car and then
negotiate the price by starting at asking price and then trying to bring the seller
down to the price you want to pay.

With this way of buying, you can take your time, take a test drive, and think
about how much you want to pay and if the deal does not suit you, you can go
away and think about it.

Buying a car from auction is a totally different experience

The scenario at the car auction is far different, and this is what puts a lot of
people off from buying a car this way, but if you are armed with a checklist and
knowledge of what to do, you can certainly swing things in your favour.

Attending The Auction

I ll assume that this is your first auction that you will be attending. If you are an
experienced auction visitor, then it won’t do any harm just to go over points that
you already know.

The first place to look for at the auction is the office where the entries for the
vehicles are accepted. Here there should be displayed the conditions of sale of
the cars that are entered into the auction.

Amongst the general auction rules there will be information about how the cars
are offered for sale. These are as follows:

1. SOLD AS SEEN

This means exactly what it says, what you see is what you get. Any vehicle that
is offered for sale sold ‘as seen’ cannot be rejected under any circumstances.
Any complaint about a problem that the car may have will not be entertained
at all.

This may seem a bit harsh from the buyers’ point of view, but don’t let this put
you off buying a car that is sold ‘as seen’.

2. SOLD WITH TRIAL

This can vary from auction to auction, so it’s important that you check with the
auction staff to verify what their conditions are but basically sold ‘with trial’
means:

That you get one hour after the end of the sale to return the car if you find any
‘MAJOR MECHANICAL FAULTS’, i.e. engine, gearbox, axles, steering rack etc.

Some auctions conditions differ from auction to another so that is why it’s
imperative that you check with the auction staff before bidding on any vehicle.

INDEMNITY FEES

This is a fee that you will pay on top of the purchase price of any car that you
may buy. Probably better known as a ‘buyers premium’.

Fees vary a great deal from auction to auction. Check with the auction staff as
to what these fees are if they are not displayed in the office area or around the
auction.

These fees should also include an ‘HPI’ check on the car you are buying. This will
give you full legal title to the car. The ‘HPI’ check covers items such as:

a) Whether the car has any outstanding finance on it.

b) If the car is on the police stolen list.

c) If the car has ever been an insurance ‘total loss’.

d) Whether the car has had a number plate transfer.

e) Will also confirm the ‘VIN’ (chassis) number.

When I first started to visit car auctions I went along to them for about 3
months before I bought my first car. The reason for this was because I wanted
to go into car dealing as a business and I decided to carry some research before
I actually committed myself.

I would not under any circumstances take any money with me to buy a car with,
just enough to get there and back and for a cup of tea and a sandwich, and
sometimes that can come to a few quid depending on which auction you go to.

I did this because when I saw how cheap some of the cars went for, I
immediately wanted to start buying anything and everything, but this would
have been a mistake.

So I sat at every auction I attended with my notepad and pen taking down the
details of nearly every car that came through the auction and I was surprised
at the prices the cars were making.

From there I would go home and compare the prices in car magazines and the
local paper and I could see immediately how much profit people were making
by selling cars.

The Day I Bought My First Car At Auction

I decided to take the plunge and armed with all my knowledge and statistics of
the previous 3 months research, I purchased one evening at a car auction in
Essex, a Rover SDI 2600, X registration, for the sum of