I believe that at some point you have had the doubt about how to buy a car at auction, right?

So, they are usually offered at much better prices, much lower than market prices, making them an excellent alternative for those who are thinking about changing cars. Especially for those who want to spend little.

Not only that, the initial prices of cars are usually released a little before the start of the Car Auction, thus ensuring greater transparency in purchasing.

However, the buyer has the possibility of better financial organization, depending, of course, on the sale value of the car.

However, most people are still very afraid when it comes to buying a car at auction.

Therefore, to help you know how to deal with your fears, and also to know in depth the advantages involved in buying a car at auction, we will show you the best ways to participate in a car auction without fear.

WHAT IS A CAR AUCTION?

First, let's explain everything in the simplest way possible. Starting with the basics. So, it's important to understand that there are several types of auctions. See below:

• Auction of Car Manufacturers: These are cars that have “stuck in stores” and now need to be sold;
• Auction of Public Bodies: These are cars used by the state that for some reason they will no longer use. So, these cars go to auction.
• Insurance Company Auction: In this case, the cars may have been crashed and seized. When this is the case, be very careful when making the purchase.
• Judicial Auction: As the name suggests, these are cars that were seized due to non-payment or non-compliance with the contract, generally, they are cars purchased from banks.

In addition, we have a new modality that is being created, which is direct sales! This is a very common method in Europe and the United States. Basically, the company, car manufacturer, or even a bank, hires a company to sell its cars.

In this sales model, the offers are usually better, and so are the cars, since we do not find crashed, stolen or recovered cars.

HOW DOES A CAR AUCTION WORK?

First of all, all car auction, by law, there must be a notice. With all the information about the cars, the companies and everything else relevant to the sale.

But we also have a version of auction by lots. In this model, auctions are made in quantities. Let me give you an example: Ford is going to sell a lot of 40 Ford Focuses. This type of sale is usually carried out by large buying and selling networks.

There is also the option to make a Buying an Auction Car, using the internet. Of course, on a very reliable website. But rest assured, currently, we have more options for Virtual Auctions than in-person ones. Which makes it much easier for those who want more options, both for investment and for personal purchases.

Auction Operation Information.

This is information that everyone needs to know in advance, so that there are no surprises or surprises when buying or selling a car at an auction. Here they are:

• Auction Commission: The auctioneer earns a commission on the sale, which is approximately 5% of the sale value, but this commission varies from Auction to Auction.
• Non-payment of Purchase: If a buyer is unable to meet the amount offered in the bid, he/she will be banned from participating in auctions for an indefinite period;
• Car Pending Issues: If the car has any type of outstanding debt, regardless of value or reason, these must be paid by the buyer before regularizing the car with DETRAN. Remember, all irregularities of the car are described next to the vehicle.

Now that you are aware of all this, before you go out and buy any car, do a little checking of all the cars. See how much you would need to spend to bring the car up to date with the DMV.

Additionally, you have 30 days to pay all outstanding debts. car purchased at auction. So, don't let the deadline pass.

WHERE DO THE AUCTIONED CARS COME FROM?

Well, auction cars can arrive in a few ways, which are:

• Seized cars;
• Crashed cars;
• Recovered Cars;
• Accident Cars;

It is not uncommon, as mentioned above, for auction cars come from the manufacturers and dealerships themselves. In fact, you can find several offers and even test drive cars are included in these manufacturer auctions.

TIPS ON HOW TO BUY A CAR AT AUCTION?

Now that you understand the main information, let's leave you with some tips on how to buy a car at auction. Here are some tips to avoid making mistakes when buying your new car:

• Search for information about the car model: Find out everything you can about the car model you like, and always compare the price with a brand new model.
• See the severity of the car's problems: This is perhaps the most important thing to consider. Depending on the problem, it is best not to even bid, as some cars may be more expensive than the actual value of the vehicle.
• Only bid if you really want the car: It is very important that you only bid if you can really afford it. If your bid is the winning one and you do not pay, in addition to being blocked from other auctions, you may pay a fine of % of the value of the car.

PAYMENT FOR AN AUCTION CAR?

In general, payment for auctions is usually made in cash. In addition, the buyer has between 5 and 7 days to make the payment. However, this varies from auction to auction.

However, there are some auctions that accept payments in installments. However, these are the minority.

Therefore, to enter an auction, it is extremely important that you already have the money in hand to place your bids.

CONCLUSION.

Finally, it is extremely advantageous to buy cars at auctions. You gain a lot in terms of price. However, it is important to note that there are risks. Therefore, be careful when buying and, if possible, take a trusted mechanic with you to help you make the best choice.