How to Buy a Used Car at an Auction: 5 Tips for 2019
Buying a car at a used car auction can be a way to get a bargain. Here are 5 tips on timing, location, inspection, price checks and bidding for 2019.
Car auctions: buying a car at auction can be a way to get one at a bargain price. With luck, a bidder can win a car for well below the market price, which is why many people want to buy this way. Unfortunately, buying at auction is not as easy as it sounds. There are several things you need to weigh and tips you need to know well. If you are not careful, you will lose money instead of saving it. Here are some tips on how to buy a used car at auction:
Timing
The first tip for buying at a car auction is to watch the timing. The busy auction season does not run all year. It only takes place two to three months after Eid al-Fitr, the holiday that ends Ramadan. Around the holiday, demand for cars is high because people drive them home for the holiday (mudik). Unfortunately, some customers then start to fall behind on their installment payments. That is why so many cars end up offered at auction houses.
Location
Timing is not the only thing to watch. The location matters too. Auction houses are not found in every city, and where they exist, their reach is small. The big auction houses are in Jakarta, Surabaya, Bandung and Semarang. Why only these cities? They are the hubs for the large branch offices of car manufacturers, so it is no surprise that more bidders turn up and the auctions are busier.
Be Observant
To take part in a car auction you need to be observant. If you are not, you may end up with a car that does not match your expectations. Cars at auction are often in fairly good condition, but some are auctioned because their condition is poor. That is why it is important to be thorough when sorting through them. You can view the units 3 to 5 days before auction day. Use that time to inspect them, especially the engine and the vehicle documents. It is even better to bring a friend or relative who knows about car engines and paperwork.
Compare Prices
The next step in buying a used car at auction is to compare the price with the market price. Many people want to buy a car at auction but skip this step, and end up trapped paying too much. The right approach is to find out the market price of the car you are eyeing and use it as a benchmark when you bid. That way you will not pay more for an auction car than you would on the open market.
Don't Get Carried Away
An auction is a sale in which an item such as a car is offered and bidders bid the price they want to pay. The highest bidder gets the car. So if you want to take part in a car auction, don't get carried away. Watch the other bidders and follow the process closely to see whether anyone looks suspicious. Some bidders work together with certain individuals in schemes to push prices down.
If you win, take the car to a workshop right away to check its physical condition. Also, when you buy at a car auction, make sure you know how to handle the paperwork for the car's ownership, which matters a great deal for you and your car down the road.
