Buying or selling your car in an auction can give you a
headache if you do not have any idea what you are getting yourself into.
Let me give you some answers for the most frequently asked questions
about auctions.
What is an Auction?
An auction was one of the first means of doing business and profitable
exchange. History books show that art, land, crops even people were
being auctioned off in the past. Hey, even the Roman Empire was
auctioned.
What about an Automotive Auction?
An auto auction is the ideal environment for car dealers to remarket
their cars. This is the perfect opportunity to make the big bucks and
get that great sale that you have been waiting for. The true market
value of the vehicle is also determined once a vehicle is put on an
auction block.
Auto auctions exist to market cars. Its main objective is to make the
deal fast and accurate. It serves as the impartial trading floor which
offers security and integrity to the participants. It also varies in
size depending on the number of employees, cars or how big the area they
occupy.
Auto auctions may also offer different services like, repairs,
reconditioning, financing, arbitration and a host of other services.
How do I participate in an auto auction?
As there are a number of auction houses available, choose a reputable
auctioneer to buy or sell your car to. Keeping in mind the kind of car
you want to sell or buy, the geographical convenience and the services
the auction operators offer, these factors will determine the auction
you will want to participate in.
Be also aware if the auction is an open or closed auction. Open
auctions, as the term suggests, are open to any registered dealer. Most
auctions are open but may be tailored to specific kinds of vehicles like
car fleets, rentals, repossessed units or special dealer consignments. A
closed auction is limited to specific participants.
It is also advised to check the websites of the auction houses you want
to participate in. It is a good idea to request for an auction tour.
This will give you the chance to inspect their facilities and
operations. This is also the best time to ask and clarify details such
as the bidding process, services offered and other questions which come
to mind when you are inspecting the lot.
Once you have decided which auction house to participate in, get the
necessary paperwork done and be sure to have an identification card and
a bidder’s badge. If you are buying, get a hold of the ‘run list’, which
is a computerized list of vehicles being auctioned off on a specific
date, the commercial consignor and similar information. It is also a
good idea to get a sales lot parking plan. Vehicles are typically
grouped and the parking lot plan will help you locate which lane to go
to.
What is a ‘floor price’?
Also known as the ‘reserve’ or ‘low’, the floor price is the lowest
price the seller is asking for. If the price is not met while on the
block the seller can lower it to attempt a sale. If the floor price is
still not met, the vehicle can be placed in the "if bid" where the
bidder agrees to buy the vehicle if the seller agrees to his offer in a
specific period of time.
How do I evaluate the vehicles?
There are usually pre-selling inspections where you can appraise the
vehicles that are being auctioned off. Each vehicle has a windshield
marking where information like the seller’s name, model of the vehicle,
mileage, run number and lane assignments are posted.
For a fee, post sale inspections are also available in some auction
houses, where auction mechanics are available to check the engine,
air-conditioning, brakes, frame, transmission and the rear end.
It is also wise take advantage of the free arbitration services which
protects the interests of both the buyers and sellers of the vehicles.
You can also test-drive the sold car if you present a valid I.D. to the
arbitration department. Most auction houses have test tracks, so make
use of this service and be assured that you have got your money’s worth.
What happens after I win the bidding?
After your purchases have been completed, go to the front office of the
auction house and finalize your transactions by making the required
payments. The title is then transferred to your name. A gate pass will
be issued for your purchased vehicle.
What are Internet Auctions?
Auction houses are taking advantage of the present technology available
to them. Cyberlots or cyber auctions allow sellers to post their
vehicles on the net, including photographs and information about the
specific car they want to sell. Most cyber auctions have limited time
frames.
About The Author
Perry Gibson is a long time auto auction attendee and also, co owner of
usautoreview.com Here he helps shed
some light on
auto auctions
Article Source:
http://www.articlecube.com