You’ve been dreaming of the day you finally own that Maserati you’ve always wanted. Or perhaps it a Mercedes-Benz is more your style. You have just spotted your dream car at a dream price at an auction and cannot wait to get your hands on it. Before you part with your cash, here are some things to think about when you are buying a luxury car at an auction.
Types of auctions
In your hunt for your luxury car purchase at an auction, you may come across these types:
- Public car auctions: Be sure to do your research so you don’t overpay at these popular auctions because the reliability and quality of cars you find here can vary greatly from one auction to another.
- Police or government car auctions: You’ll find cars here that have been confiscated for either crimes or traffic violations and just like in public car auctions, there’ll be stiff competition from savvy bidders well-versed with car values.
Where to Find Auctions
Check out online auctions as a starting point when looking for your luxury car to purchase. You’ll find thousands to choose find. The popularity of online auctions is growing rapidly. At a recent online car auction in Florida, the number of registered bidders grew by just under 25% compared to the average over the last four years. Registration take just minutes and you’re ready to place your bids as soon as you’re done.
For in-person auctions, look at the US General Services Administration website for details of available auctions. You can search by state to find the auctions that are in your area. Whether you going to an online or in-person auction, be sure to have a valid driver’s license ready. This is a must to be able to register as a bidder.
Research Your Car
They may look bright and shiny but you’re likely to find a lot of lemons in auctions as well. There are no warranties at car auctions. So, be sure to do your homework and find out about the history of the cars you’re thinking about buying.
Check-in with a friend or family member who may be familiar with car auctions if you’re in doubt. A good starting point is to get a vehicle history report using a car’s VIN number. This will tell you a lot of useful information about a car, including if it’s been a major accident.
Get Your Finances in Order
It can be easy to get caught up in the frenzy of bidding at an auction. Before you splash your cash on that Ferrari, set yourself a budget in advance of the auction and stick with it! Don’t forget to include car registration fees and taxes when you’re thinking about a budget.
If your bid wins, you’ll need to pay for the car in full before you take ownership of it.
If you’re using a loan to pay for a luxury car at an auction, make sure it’s secured with the bank before you bid at an auction. Have enough cash ready to cover your deposit, which generally will be done within 72 hours of winning a bid.
Once you’ve done these, you’ll feel ready to spring for your next luxury car at an auction. Happy bidding!
If you have any inquiries about our car buying and selling services, do not hesitate to contact us through our website, or call us at 954 533 4566!
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