Added: 01/11/2006 |
How To Avoid A Lemon At Used Car AuctionsHave you ever wondered about how reliable and costly cars which are purchased from used car auctions are? Used car auctions are ideal places for bargain hunters and everyday people to find the car they desire at a reasonable cost, but if one isn't wise when bidding on cars, he may find himself with a lemon. This article will discuss the advantages and disadvantages of buying from used car auctions.
Cost
You made find yourself at used car auctions staring at the starting bid for a pre-owned used Honda, $5000. You may have discovered quite the bargain, but there are some things to keep in mind:
• The Buyer's Premium: Used car auctions typically have a fee attached on top of the winning bid. So if you won the pre-owned used Honda auction at $5000 you would have to pay an additional fee. This varies from company to company. It could be $200-$300 but also it could be anywhere up to 10% of the winning bid. Make sure you find out what the premium would be before you start bidding. The Buyer's Premium can easily take the auction price over the blue book listing.
• Existing Damages: Check the vehicle for any damages that you would need to get repaired or fixed, and then add the cost of these damages to your auction price and buyer's premium. If the total is more than the blue book price for your car, then move on.
Reliability
Lets take that same pre-owned used Honda that was priced at $5000. How do you know that the engine of the car won't start making a clanking noise and billowing smoke as soon as you drive it off the lot? The way to prevent this uneasy feeling of purchasing from used car auctions is to conduct a Carfax Vehicle History Report. The report will tell you about hidden problems the car may have. It will tell you if the car was ever totaled and rebuilt, if it has flood damage, if the odometer has been altered, if the car had been in any major accidents, if the car is stolen, if it was formerly a rental car, operating cost estimates, and more. All you need to do is write down the VIN for a car that interests you and then type it into the Carfax web site. The best deal is to buy a month of the unlimited access plan so that you can look up several cars with no additional cost.
Reputation
Another factor in considering buying from used car auctions is the company's reputation. Do you know anyone who has purchased from them successfully? How well does his/her car run now? A good site to find out a company's reputation is Ripoffreport.com. Just type in the name of the company and the site will explain every problem reported by someone. The Better Business bureau (www.bbb.org) is also useful for seeking a company's reputation.
All these points should be taken into consideration when you are looking to go to a used car auction. If you are going to buy a pre-owned car then just remember that it is pre-owned and the miles that you get out of it may not be as many as you would get out of a brand new car. But that is the price that you pay, of course if you hardly get any miles out of the car then you are more then entitled to complain to the person that you brought it from, they have to do something then otherwise you can get the police involved and that is something that they won't want to happen.
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