Buying a car second-hand offers a chance to snap up a high-value asset for a relative pittance – and, if you’re willing to shop at an auction, the potential for big savings is even more considerable.
But the auction environment isn’t for everyone. It can seem arcane, and a little bit intimidating. Let’s take a closer look at some key tips for would-be bidders.
Understanding the Auction Market & Source of Vehicles
An auction is a great way to sell large batches of vehicles quickly, without the hassle (and cost) of a showroom and a forecourt environment. As such, you’ll often find that the vehicles you encounter come from the same place. That might be a fleet of company cars, returns from a leasing company, or vehicles that have been repossessed by a lender.
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Vehicle Condition, History & Inspection Protocol
Wherever you’re buying a used car from, you’ll need to check on the vehicle and see what condition it’s in. Verify that the mileage on the odometer is genuine, and pore through the vehicle’s service history. In many cases, reputable auction houses offer an inspection service, so that buyers can be reassured of the car’s condition. This might involve extra expense – but if you’re looking at car auctions online, it might provide invaluable peace of mind.
Fees, Terms & Hidden Costs
When you buy at an auction, you’ll need to consider more than just the hammer price. There are also administration fees, Value-Added Tax, transportation and shipping fees, and the Buyer’s Premium (which is a percentage of the winning bid, added to the final price). On top of that, you’ll also need to ensure the vehicle is roadworthy, which might mean getting a new MOT certificate.
The costs you face might differ depending on the kind of buyer you are. What’s clear, however, is that you’ll need to be aware of all the costs before you start bidding.
Post-Purchase Considerations: Registration, Warranty, Resale Strategy
After you win a lot, you’ll need to transfer the title and the registration, so that you become the legal owner of the car. In some cases, you’ll be protected by a warranty – but this isn’t certain. Above all, you’ll need to ensure that the auction house you’re buying through is reputable and reliable. This will give you the best possible chance of avoiding stress later on.
