Buying cars at auction can be a cost-effective alternative to buying from a dealer, or in a normal, one-to-one private sale. As the majority of used car dealers acquire their stock at car auctions, it is obvious that there are opportunities to save money.
Of course, most opportunities come with a certain amount of risk. In the case of buying at auction, the risk lies in the lack of protection for buyers: warranties and money-back policies are for dealers and showrooms. In order to enjoy a good auction experience, you'll need to be alert and ready to pay attention to detail. The following, brief guide should help you prepare and maximise your chances of a successful purchase.
What to do when buying at a car auction
- Visit several different auctions before you buy anything. Familiarise yourself with the process and with the differences between different auction houses' practices and policies. Read their terms and conditions fully. Don't be afraid to ask questions of the staff. Consider speaking with buyers to ask about their experiences but be aware that many of them may be dealers
- Check the auction house's catalogue. The catalogue listing the cars for sale will usually be available online some days before the sale. Make notes about cars that interest you and do some research: find out how much they usually sell for and what problems are common with that model. Check the auctioneer's description of the vehicle. It should specify any known issues or special terms or conditions that may apply to that specific vehicle.
- Register with the auction before bidding starts. You can usually do this online before the day of the sale.
- Make sure you take your driving licence or other acceptable ID with you to the auction.
- Do online vehicle history checks to see if any issues are listed for the car. A check with someone like HPI may cost you about £20 but it may also save you from a costly mistake. This is one of the most important precautions to take.
- If you don't know a lot about cars and how they work, take someone with you. If you have a friend who is a mechanic, or who may be an experienced hands-on car tinkerer, get them to go with you to the auction to help you check for any serious faults or damage. Give yourself plenty of time to look closely at the vehicles on sale:
- Open doors, windows, bonnets and boots; check for spare wheels.
- Look at the engine. If at all possible, get staff to start the engine so you or your mechanically-minded friend can hear it in action. Check for smoke that may indicate a problem.
- Check for uneven wear on tyres. The tracking may just need a tweak, but it can indicate more serious problems. Your mechanical expert companion will know what to look for.
- Check that dashboard warning lights go out after the car starts.
- Check for signs of corrosion or damage, and for uneven paint that may indicate an attempt to cover up issues. Check for windscreen damage.
- Check the condition of the interior and upholstery.
- If VIN numbers are visible in several locations, check that they match. The unique Vehicle Identification Number may be visible on the dashboard, just under the bottom of the windscreen; on the engine block, and inside the car on a plate affixed just inside the driver's door. It may also be stamped onto the floor of the car by the driver's seat. The VIN will also be on the vehicle's V5C registration document.
- Check any available paperwork and for items such as an owner's manual or service history.
- Make sure you're in a location where you'll be visible to the auctioneer. Stand where your bid can be seen and make sure you signal your bid clearly by raising your paddle, your hand or your catalogue.
- Be aware that there will probably be internet bidders as well as those present at the sale. Bidding can take place faster than you might expect, so be alert.
- Only bid on lots you have decided in advance to buy, and only bid up to a preset budget. Research your budget and set it no higher than 15% below a typical dealer's price on that model.
- Before bidding, check what fees or additional costs you will have to pay on top of the hammer price.
- Be prepared to pay on the day if you place a winning bid.
What not to do when buying at a car auction
- Don't buy if you've never visited an auction before.
- Don't buy if you haven't examined the catalogue and carried out vehicle history checks on cars that interest you.
- Don't bid on anything you haven't examined, or about which you have reservations.
- Don't expect to bid now and pay at a later date. You will usually be required to pay on the day.
- Don't bid on anything for which you haven't set a properly researched budget. Don't be tempted to make impulse bids, and don't let the speed at which bids are made sweep you along and make you bid over your budget.
- Don't expect the same consumer protections you would have if buying from a dealer. There is a reason auction prices tend to be lower.
The golden rules
Of all the tips listed above, these are the most important and should be regarded as indispensable.
- Take someone with you who has a comprehensive knowledge of cars and engines. If you know a mechanic then that would be ideal.
- Do vehicle history checks.
- Examine vehicles and hear/see the engine running. If anything seems 'off', don't bid.
- Research values and set budgets that you'll stick to.
With thorough preparation and research, visiting auctions and buying cars can be a fun and interesting experience. It can also save you a great deal of money.
With leasing companies, fleet operators and dealers often selling off vehicles, it is quite possible to find a great car. Ex-demonstration and nearly-new cars from manufacturers can also turn up from time to time.
Do your homework and be diligent with your research and checks. That modest investment in time and effort should see you all set for a great auction experience.
