Car Auctions, what you need to know...

Buying the car of your dreams at an auction may seem a bit daunting at first but then again, it’s also a brilliant way of finding a real bargain, which may otherwise not be accessible through traditional channels.

This nifty little guide we’ve put together covers some of the basic aspects of what goes on at a car auction and what to look for when attending your first one.

What happens at a car auction?

Spending a day at your local car auction house can be both exciting and yet nerve-racking all the while. You want start by showing up a little earlier than most people would. This way, you can have a look at the cars you want to bid on.

What exactly should you be looking for?

Let’s start with the bodywork. Check to see if there are any signs of damage or corrosion. Ask someone to open the bonnet and check for leaks. You definitely won’t be able to test drive it, unfortunately, but you may be able to start it up and hear that beautiful engine purr, as most auction houses allow it.? Carefully listen for any unusual or out-of-the-ordinary noises. Also inspect the exhaust to see if it’s too ‘smokey’ or just kicking out air pressure and a few water droplets, which is considered normal.? Check the tyres to make sure they are not too heavily worn out or unevenly worn out, and also inspect the interior for any loose or broken parts.

Once the auction begins, you’ll get to see each car being driven through the room in the exact same order they were advertised in the catalogue. Cars at auctions are typically referred to as ‘lots’, so each lot is given a unique number. You should note down the number of your desired car so that you’ll know when it’s being called out.

Now the fun begins! The auctioneer begins by setting a starting price, waiting for people in the room to start responding with bids for the car in question. He/she will continue calling out the price until no more bids are left – and that’s when the car is sold to the highest bidder.? If you are lucky enough to win a car at an auction, then you need to put down a deposit. This is typically 10% of its value or ￡500, whichever value is higher. You will then be asked to make your way to the cash office to pay the rest of the price and get your paperwork in order.

There is one very important thing to note at this point: auction houses have their own accepted payment methods, so make sure you know what these are before attending the auction.? It’s also your responsibility to see to it that the car has tax and an MOT before you take possession. Additionally, you’re going to need some kind of insurance cover before you drive it home.

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This is my first car auction: What do I need to know?

Auction house and market research

Before heading to your first car auction, it’s always a good idea to do some research. So, that means researching both the auction house and market trends.? It's important to research the auction house to make sure it is legitimate. Plus, research our local area auctions too, and not just the big names – you might find better bargains at the smaller, local auctions. In some cases, you can even view the cars to be bid on before the auction, so take advantage of this and find out what kind of cars are up for grabs.

Market research is just as important – for example, which cars are trending or highly popular at the moment? What kinds of cars do people tend to bid on the most? Find out what you can about average costs too, so that you don’t get caught out by surprise once you start bidding.

Familiarity with the auction house’s requirements

All auction houses have their own set of requirements which need to be strictly followed in order to participate. For example, if you’re taking part in a dealer-only auction, then you must show your dealer license as proof.

Car auctions also tend to have some kind of entry fee or deposit. Make sure you are aware of all the auction’s requirements and conditions before attending; with certain online car auctions, for instance, you need to pay a fee again after a successful bid.

With that out of the way, here’s a generic list of questions to ask yourself before attending your first car auction:

• Is it an in-person or online car auction?
• Have you conducted adequate research into the auction house?
• Are you fully aware of their unique requirements, conditions, terms, etc.?
• Have you fully researched the market to make sure you haven’t missed any trends?
• Are you aware of the auction house fees pre and post-bid?

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Is the car being sold ‘as-is’?

Some cars are sold ‘as-is’ at auctions. So, that means you are agreeing to buy it in its current state, without any repairs to the damages it has taken.? Now, this is where you need to pay attention to the auctioneer reading out key details:

Free of major mechanical faults – This means that the car is sound and free of mechanical defects in the engine, transmission, powertrain, steering, and brakes.

Specified faults – In this case, the auctioneer will read out the specified faults which have been made known by the seller.

Sold as-seen (as-is) – This points to the fact, as we discussed earlier, that the vehicle is sold as-is, with no warranties given or responsibility taken by the seller for damages. You are, therefore, taking the repairs upon yourself.

There’s a lot more to learn about car auctions in the UK than we can discuss in one article. If you’re looking for a simpler, more straightforward way to buy your dream luxury or prestige car today, then contact Liber Financial to get started.

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Liber Financial can help you determine eligibility and make the entire process really easy for you.

Call us now to explore a variety of car financing options: 0330 174 8540

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