Dealing With Auto Auction Prices

Auto auctions are becoming increasing popular as the best place to find cars at bargain prices but understanding auto auction prices and how to go abo...


Auto auctions are becoming increasing popular as the best place to find cars at bargain prices but understanding auto auction prices and how to go about bidding is something that leaves a lot of people feeling very confused.  Unlike traditional new and second hard car purchase, there is no sticker price in an auto auction that can be issued as the opening price in negotiations with the dealer.  In the case of an auto auction, there is no sticker price or any other point of reference ‚Äì the price car is sold will depend on the interest it evokes among the bidders.  Probably the only fixed point on auto auction prices is the price at which the auction opens and even this may be lowered if there are no takers for the opening price.

The best way to understand auto auction prices is to spend time at a few without bidding on anything.  Just sit and watch and you will get an idea of which makes command the best price, how the age of a car affects its selling price and how the bidding proceeds ‚Äì how much is the general increase over the previous bid and so on.  All this will give you an detailed understanding of both how the bidding normally progresses and also a ballpark figure of the comparative selling prices of different makes.  While doing this exercise, try to look out for the kind of cars you are interested in and pay special attention to their auto auction prices.

Auto auction websites and magazines are another good source of information on auto auction prices.  Once you have a working idea of what the kinds of car you are interested in are going to cost you, you will need to set yourself budgets.  Keep in mind that there are no certainties in any auction and if you get caught amongst bidders who are determined to have the car you are also bidding for, the price can sky rocket.  Keep your bidding limit flexible as possible so that you have some maneuvering room during the bidding process, but never let yourself exceed the budget ‚Äì it may seem like a small additional amount to risk, but once you start exceeding you financial limits, it can be difficult to know where to stop.

No matter how much you may want a car, stay away from bidding wars that can push up auto auction prices and make buying the car impractical – the whole point of an auto auction is to get a good car at a cheap price.

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