At first it may seem that if the car is intact, and the price is right, then why not buy it? But things are not as simple as we would like. There are some pitfalls that make the purchase of car auctions good financially risky undertaking, we will tell you about them in more detail.
Hidden and obvious damage
In America, there are a huge number of car auctions worth it that sell cars. Among them, the most popular Copart and IAAI offer a wide variety of vehicles. The main sellers here are insurance companies that paid compensation for a car that got into an accident, after a fire or drowning, as well as cars that the police found after theft. Other lots are also displayed on the site:
- cars confiscated from debtors;
- cars from car parks of rental companies;
- when updating the car park, transport departments of large companies;
- taxi companies.
Ordinary resellers also work here.
Auctions have their own specifics. For example, Manheim is a platform where used cars in good condition on the go or requiring repair are sold. Copart and IAAI auctions are mainly engaged in the sale of damaged cars, after an accident, for analysis. You can also find a whole car here. In such cases, the “damage” column will look like this:
- Normal Wear – normal condition
- Minor Dents/Scratchers – minor damage;
- Mechanical – the body is intact, mechanical damage;
- Water/Flood – car after drowning.
If the car is slightly damaged, it will cost more. But it is still more profitable to buy it, because minor repairs will cost less and take less time. If the auto is purchased for personal use, this option should be considered. If the auto is bought by a reseller who has the opportunity to repair the car himself or at his service station, to put it in order for subsequent sale, you can consider purchasing a damaged inexpensive auto.
Cats in a sack
This is a whole category of cars. Most often, such copies are sold by insurance companies. In the United States, there is a whole system whereby unscrupulous citizens deceive insurers. The car that got into an accident is put in order externally. They paint with a spray can, break the windows in it, throw something with a very unpleasant smell. Such cases are considered insured, and compensation is paid for them. Then the insurance company sells this car, not figuring out what’s under the hood.
When buying a car, you can order an examination, but it is expensive and takes a lot of time.
As you can see, the purchase through the auction has its own nuances. So deciding whether a buying auto auction is a good idea is worth it is everyone’s own business. You can make a really good deal, or you can make a bad purchase. It is also important to consider that there will be costs for the delivery of the auto from the site to the destination. It good buy cars auction monitors their reputation, tries to ensure that prices are fair and trade is transparent.