How much can you expect to save buying at car auctions?October 28th 2018
Buying a new car is a huge investment. Prices of cars keep depreciating and if you aren’t exactly rich, the decision to buy a new car is more questionable when you consider the facts. This single factor makes the used car market appealing to savvy buyers. Buying at an auction is the smartest option when you are looking to get the best deal. The prices can be unbelievably low, and as long as you learn the ropes before jumping in, you can get great value for your money. There’s little wonder the Australian car auction market is becoming more popular every day.
What makes car auctions appealing?
The potential to save money is what mostly drives people to purchase at auto auctions. However, there are other reasons why you may consider buying at an auction. Large auctions boast a large selection of vehicles, the kind of selection you don’t usually find at a dealership. Thus, there is a wide range of options and models to choose from, ranging from hundreds to hundreds of thousands of dollars — some vehicles even get into the millions.
How much can I save?
This question is as open-ended as it gets. There are numerous factors that determine the amount you can save when you buy from an auction. The condition of the car, its popularity, and the make and model are some of the factors that determine the price guide. If we were to provide a definite figure, we’d say anywhere between 20-60% of the value of the car in the open market. If the car is in excellent condition, you should save at least 20% of its market value.
Will I always get a good deal?
Yes, you can almost always get a good deal. Often, you’ll still save a reasonable amount when you factor in the cost of any repairs. The cost of purchasing a vehicle massive decreases if the it requires repairs. Such vehicles are not road worthy. If you buy at an online auction, transportation expenses will also need to be considered.
All in all, an auction is a good place to buy your car if you know what you’re looking for. Most motor dealers purchase their stock through auctions on account of the low prices, and dealers always want to sell at a profit. For an auctioneer however, moving stock quickly is more important than making a profit. This makes it much easier for you to leave with a bargain.
It is important to do your research and learn the basics of buying at an auction before jumping in. In fact, you should attend a couple of auctions with the sole intention of observing the proceedings. When you do this, you’ll learn how to strike bargains for good cars, thus saving yourself a lot of money.