January 22, 2008

Buy A Car From Cheap Used Car Auctions Or Private Dealers?

by Davion Wong

There are a lot of misconceptions when it comes to cheap used car auctions. Many people still prefer to deal with individual old car sellers rather than taking part in an auto auction. There may be plenty of reasons why: cheap used car auctions are rarely advertised widely, the auction rules seem rather complicated to many people, and a lot of terms like "repossessed", "seized" and "confiscated" tend to be misunderstood as "trashed" and "low quality".

Those, who think that purchasing a second hand or older car from an individual dealer eliminates the potential risks, should know that in reality there is simply no guarantee that the vehicle is a good buy as long as it is second-hand.

For a discount of 90% off the showroom price, it is quite expected that you must get ready to stomach risks. This is the case whether you are buying your automobile from an individual auto dealer or from the cheap used auto auction. These vehicles are sold to you in its "as is" condition with no warranty. So, it is like a gamble. Either you end up with a load of crappy metal or you drive home a well-kept sports car for $300.

There is a higher chance that you can pay less for a newer car of better performance from cheap used car auctions than at the second hand auto dealership. The reason is simple. At the used auto garage, the price is tied to factors like the car age and condition in particularly whether it was involved in major accidents. So the cheaper it gets, the worse the condition is. On the contrary, cheap used auto auctions follow a bidding system so you stand a good chance to purchase a relatively new automobile at a price tag of few hundred dollars.

By the way, the vehicles that you see in the used vehicle garages could have originated from the used auto auctions. These dealers are smart enough to win bids at auctions, only to resell these vehicles for profits. If that is the case, why let them earn the margins when you could buy your choice wheels from the cheap used car auctions directly.

We would be lying if we say that there is no homework involved. You do need to search for the venues and vehicle listings as well as hire qualified vehicle mechanic to provide an assessment on the car condition. Plus, there is some paper work involved. That said, most common folks can handle that as it is not that difficult and help is available.

A lot of information like the scheduled venues for cheap used car auctions and vehicle listings are now available online. A quick search at the online directories can reveal a lot of details.

Why waste money purchasing a vehicle at marked up price when you can find your dream car at a budget price through cheap used car auctions? Search through my auto blog now!

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Filed under Auctions, Autos by Davion Wong

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