Buying a car can be a frustrating and expensive process. If you aren’t able to afford a new car, you’re probably planning on buying a used one, and you’ll be happy to know that you’ve got a couple of options here. You can either go to a dealership or a buy-here-pay-here used car lot, or you can buy a repossessed car. At the first option, you’ll more than likely pay at or above the car’s Kelly Blue Book value. With the second option – buying outright at dealer or government auctions – will help you to get a lower price, possibly as low as 80% of the car’s value.
In all cases, the used car you’re buying will be listed as “as-is,” meaning that if you find faults with the car after you drive away, they’re your responsibility to repair. Some dealerships or third party vendors offer after-market warranties, but these can be expensive options and won’t necessarily cover everything that breaks down. Your best bet is to do your homework first to be sure you’re getting a good condition car when you buy at an auction.
Locating an auction
Finding auctions for repossessed cars isn’t always easy. Government auctions usually only occur once or twice a month. Dealerships, on the other hand, may schedule them sporadically. Watch your local paper for dealerships announcing auctions, but ignore the ads that say they can help you locate “repo” (repossessed) car auctions. These businesses usually only want your money and will give you the same information you could get on your own by making a few calls or searching the Internet.
Make a few calls to your local or county police department. They should know the times and dates of their upcoming auctions. Some of the larger dealerships in your area might also be able to tell you when they’re planning their next auctions.
Don’t go alone
When you find an auction you’re interested in attending, be sure to get there early. If you don’t know much about cars, take a friend with you who does. As mentioned before, the cars are sold “as-is” when you win them at the auctions, so you’ll need a knowledgeable friend with you to go over everything on the car before you bid. You do not want to pay for a car, only to find that you can’t even drive it home!
How do you pay?
When going to car auctions, you’ll be expected to pay the full amount for the car before you’re able to take it off the lot. Call the auction house before you arrive to find out their payment options, as they may accept cash only or some credit cards. If you win a car and you aren’t able to pay, they’ll probably just re-auction the car.
Always remember –
These cars were repossessed – so there’s a good chance that the prior owner didn’t take care of them, since they knew they wouldn’t have them much longer. When dealerships have to repossess cars, the cars fit for selling on their car lot will be placed there – the others go to auction. Expect that there will be something wrong with all the cars at the auction – this will be the case for 90% or more of the cars available. Make sure you’re ready to deal with any issues the car has that you didn’t find while checking it over at the auction house.
