Going to a used car auction what should I know?

[SteveSS]

I met a guy that goes to the used car auctions for all of Colorado Springs. I have so many questions. Let's say there is a $30K Challenger R/T street price. Meaning you would pay Joe Blow $30K and think you made a good deal.


1. How much less would you expect to pay at an auction?
2. Let's say its $22K. How do you pay the auction place?
3. Is there some magic program that says for this year and theses miles wholesale is $***?
4. I think in Colorado you can only flip 3 cars/yr before the state considers you a dealer.
5. I have room at the ranch so my HOA shouldn't get me.
6. The guy that's taking me has about 300 cars on his property. From what he says he fixes them and sells them to used car dealers.
Going tomorrow excited and scared.

 

[gkent]

Is there some magic program that says for this year and theses miles wholesale is $***?

Yes, Google it.

In Canada we have an awesome site. Not that it does you any good but have a look anyway:
http://www.vmrcanada.com/

 

[Bill Monk]

Auctions are crazy, sometimes you can get a car for well under value, sometimes not so much, the price will obviously continue to climb until the auctioneer stops getting bids and it's sold wherever the bidding stops. In an absolute auction, there will be no reserve so the car sells no matter what or how low the bidding otherwise there may be a reserve and it wont sell if the bidding doesn't hit that reserve.
Whoever is running the auction will charge you over the sale price, for some it's a percentage, others use a flat rate scale so you will end up paying more than the bid price. You will have to check with whoever the auctioneer is to get that info. (most have this published on the web) but if you can't find it just ask when you register. All I have ever attended require cash, certified check or a debit with a pin. If you plan to use a debit card, you probably need to call your bank and let them know that and when you are attending as most debit cards have a very low per transaction limit attached.
Get there plenty early so you can check out the cars before it begins then once it starts, get in place well before they auction the car(s) you are interested in. Auctioneers are different and all of them talk fast so give yourself a chance to get to know him before the one you want comes up on the block.....and have fun

 

[gkent]

And here's something to keep in mind ... whenever you buy a car in a "private" sale, you should always be buying close to wholesale. Only when buying from dealer should you pay retail. Often private sellers base their price on what a dealer would sell their car for. However, a dealer purchase ensures their are no liens against the car. A dealer will often provide some sort of warranty as well as other benefits that warrant them charging more than wholesale.

 

[Bill Monk]

Is there some magic program that says for this year and theses miles wholesale is $***?

Yes, Google it.

In Canada we have an awesome site. Not that it does you any good but have a look anyway:
http://www.vmrcanada.com/

wholesale value may be a place to start the bidding but at auction, all bets are off. You never know where it will end up

 

[eldubb440]

I've been to several......... the "good" cars are over bid every time, and there is always one hidden issue; so plan on an extra grand on top of over paying........... dealers will overbid because they can offer financing to some poor shmuck who doesn't care about the price, just the amount of the monthly payment

 

[Fran Blacker]

If you have a wife or kids over 18 you can add to the total of cars sold. In Ct you can't own a car until your 18, in Co?

 

[JB400]

Depends on the auction and how many is interested in the car, determines the price. Like what was mentioned, you will want to get there early. However, you'll want to check the list of cars before you go, and then again once you get there.

On the floor, there will be 3 lights visible:
Green: ride and drive. Get the winning bid, test drive car to make sure it's as represented. If not, haggle to get lower price or turn car down.
Red: as is, where is. You get winning bid, it's yours, period.
Yellow: exemption. Auctioneer will explain issues before any bidding begins.

You will also want to know house rules before you go. Not every place lets you drive cars unless it's a green light.
You will not get title to car until paid for. There is time limit on how long seller has to deliver title. Just because you buy it, doesn't mean title to car is in office.

 

[JB400]

When bidding, pay attention to who's bidding. There is a thing as back door bidding. Buyers will tell auctioneer price they will pay ahead of time. Also, auctioneer will give you the target price when he first opens bids. Don't bid until he lowers price to attract bidders.
Set your own price for the car, and stick with it. Don't let your ego do the bidding. Don't be afraid to walk away from a car and don't get attached to any particular car. There is always another car and a better car.

Most important: have fun

 

[Dennis H]

Caveat Emptor. Inspect prior. Take a knowledgeable person along.

 

[69L48Z27]

Steve - is this a dealer only auction, like Mannheim or Adessa? If it is there's nothing for you to do other than pick a car a hang out and lay low if you can even get in.

First, your dealer could lose his buyers rights if he brings buyers in. You won't have a bidders badge. You will need to pay him and he pays the auction typically that day.

What to pay? All these auctions have history and black books. Your best bet is to use Kelly Blue Book and look at trade in value, that's close to wholesale. The auction will also have a buyers fee that gets tagged on.

If it's a legit auction the dealer will have an opportunity to arbitrate if the car was not represented correctly.

Reading your description it sounds like your guy goes to salvage auctions which is an entire different story.

 

[Mike67]

Get you a cheap OBD to take with you. Run a scan on everything you're interested in.
Here its hit and miss. There is a group of Indians or Pakastanis that show up sometimes & will try to buy every car in the place. They will pay crazy money, they don't care. They will usually break even on the down payment...
I figured that they have several tote the note places and will resale that vehicle 3-4 times due to repos. I've been to several, my father in law and a bud go to the dealer only stuff, but they have a license to do so,,,

 

[PlagueOfBadgers]

Everyone above me has pretty much given you a crash course for just about any auction you might go to.

The internet has changed auctions forever. The auction house has done there job and put the word out to get the most return for them and the client.

Just keep a level head and don't get mix up in the excitement. It will cost you $$$. Set an amount your willing to go to for and give yourself an extra small amount for max no matter what.

When I go to any auction here is how I "play the game". You have your price already set, sit back when the bidding starts and see who and how many are bidding. You won't miss out, the auctioneer is watching the floor for bids and new bidders. Don't put you money on the floor yet, the only thing your doing at that point is bringing up the price and costing yourself more money. After the bidding starts to slow they will push for just a bit more or new bidders and then end the bidding for that item. That's when it's time to get involved, if the price has not reached your max yet. My two cents.

 

[1967coronet]

NADA has a web sight , most banks use them for value. That value is based on options , miles , condition and zip code. read JB400s post again.
If this is a impound , salvage , auction book value means little.
If its all clean title stuff then the book comes into play.
Like any auction {pay attention} a good ring man will have you bidding with yourself, make sure you get eyes on the other bidders or bidder. have a number in your head , do not cross it.

Most times the car/truck is there because a dealer does not feel good about selling it from their lot. At times they dump them just because of cash flow so you can get a good one.
Myself I would have you go to a few auctions at watch just to get a feel for it and learn the ropes before bidding and buying.
walk the lot and look things over twice at least, you always miss something. lol
Also you will hear { at Adesa anyway} a buyer wins on a {if bid} that means you have won if the seller accepts your bid , the seller will have a couple hrs to counter or accept. You win on a {if } bid your done bidding unless you can afford to buy 2 cars or the seller rejects the bid.

 

[MOPARENT]

Ha! Around here at car auctions, some bidders would squirt oil under cars, cut ground wires, put cigarette butts in plug wires to make them skip and pour water into gas tanks. Everyone would run from these 'poorly running' cars leaving the ripoff sabotaging buyer to be the only bidder. Seen it all time at big auctions.

 

[Sonny Black]

also..Payola, The practice of bribing to use their influence or position to promote a particular price or buy.
hard to explain unless you go to a lot of auctions.....also called, (quick hammer)

 

[JB400]

Sabotage is a big problem at auctions. Pulling injectors will cause a miss. I've also heard of pulling the coil wire and causing a no start situation. You might as well expect all the radio and climate control knobs to be pulled off. Dashes will be unplugged to hide mileage and the idiot lights. Seen it all. Drove many of them.

 

[vintage chromoly]

I'm not seeing a lot of benefit.

Better off buying from a private seller

 

[JB400]

If you're in the market for a used car, it's the exact same place used car dealers get their cars. In that regard, you're getting a better bargain by not paying dealer mark up. Usually, their mark up is mostly detail work plus any mechanical issues.

The cars to look for are new car trade ins and fleet sales. These will be the cheapest. You don't want to buy from another dealer unless it's just a complete bargain.