Why choose auctions and what a beginner needs to know?
Auctions have long been an excellent opportunity for many people to purchase a car at an affordable price. This is the main channel through which used cars are sold. Next, we will tell you what you need to know when purchasing a car here, and what types of auctions there are.
Auctions of insurance companies
These auctions sell cars after an accident, flood or theft. They are sold by insurance companies, which consider that car repairs are unprofitable for them. The most popular auction network is Copart. Only car dealers and workshops with a repair license have the right to buy a car at such auctions, as most of them are landfill vehicles.
Auctions are open to the public
Consignment auction – cars that are not owned by the lead auction, but are accepted by him as a “commission”. At this type of auction there is an opportunity to buy cars insurance auctions at an attractive price.
On the other hand, it should be remembered that in many cases these cars are difficult to sell because they have disadvantages.
Auctions only for car sellers
The largest network of intermediary auctions between dealers and banks is Manheim, which has its outlets in almost every corner of the United States. Cars are technically tested and sold with a very simple short-term warranty. Buying a car at this auction is usually the least risky. Almost all vehicles are sold first via the Internet, and the rest on the so-called line. In addition to the Manheim auctions, another network, although less popular, is Adesa. The rules of sale are similar to the rules of Manheim, but the choice is more modest.
Tips for beginners:
- Unfortunately, a common situation is when sellers paint and polish cars to hide their damage. Thus, you run the risk of buying a car in a very bad state. In order not to fall for tricky tricks and buy a really good vehicle, we recommend using the services of professionals.
- As for the price, due to the risk, it should be 20 to 40 percent below the wholesale price.
- Please note that the winning bid will need to be paid. Please note that if you want to use credit funds, you will need a collateral. In addition to this, you need to consider the tax situation. For self-purchase, in most cases, comprehensive insurance is required at a credit agency.