Online auto auctions are more popular than ever, and you don’t need to be a professional dealer with years of experience to join such an event. Car auctions offer a great variety: millions of vehicles are auctioned every year, and these numbers are on the rise, too.
Considering the great deals waiting for potential buyers, you can easily join an auction and make a profit. To do so, you need to know the basics of online auto auctions. That’s why we we decided to share the details you need to know to get involved.
What Is Online Car Bidding All About?
We live in interesting times. People are connected to the Internet regardless of their location. The everyday activities of most individuals could be planned or executed with the touch of a button or a screen. Since you most probably have bought various items from an online auction before, you will find that online car bidding is not that different. There are things to consider before you enter an auction, though.
Auto auctions feature a catalog with entries referred to as lots. Each lot features details about the car, pictures of it, and its opening price. If your bid meets the seller’s reserve or happens to be the highest, you’ve purchased the lot.
It’s easy to join an auction. In case you would like to bid on a public auction, you won’t be needing a dealer license. All you must do is create an account. Providing your personal and bank details is almost always required to register. Be aware that time is essential. There is a certain period, during which you can conduct your research and place your bid eventually.
People are interested in online car bidding for a number of reasons. Some are after their dream car, while others want a donor car for their project. Many individuals choose auto auctions to be their alternative source of income. They buy salvage cars for a fraction of their regular market price and repair them. The vehicles are then resold before or after passing state inspection. Even though repaired salvage vehicles can never be retitled with a “clean” title, there are still buyer out there willing to purchase such a vehicle.
You can either save or make some money by joining online auto auction platforms. Keep in mind that experienced traders and dealers are among your competition. This means you need to do your homework before you place your first bid.
What Should You Expect from Online Car Bidding?
People are sometimes concerned about buying salvage vehicles at auctions, but they are often not aware that “salvage” is not equal to “junk”. In fact, some salvage title cars are completely intact and in perfect condition inside and out. It sounds like a paradox, but it has a perfectly good explanation: most auctioned salvage cars are supplied by insurance companies. Any vehicle that has been involved in an accident, a flood, or a theft can be retitled as salvage in case the repair costs are too high or the former vehicle owner has already been compensated for the theft, if that was the case. Theft recovery cars are often the best deals at an auto auction, as they are most often good cars for less money compared to the regular second-hand auto market.
When you decide to bid on a car, you need to learn as much as you can about it. The basic details, such as the mileage and year of production, are not enough. Make sure you check its damage and service history. Try to find details about the reasons why it was salvaged in the first place. Last but not least: try to assess its condition.
With online car bidding, the exact condition of the car is something you can never be completely sure about. If you have a friend who is a professional in the automotive industry, you can ask for their opinion.
You are always better off choosing trusted auction platforms such as ours. The chance to become the victim of a scam are extremely slim here, and the overall experience is superb.
Useful Tips for Online Car Bidding
There is no better strategy for online car bidding than designing a plan and sticking with it. You need to be certain about what you’re after: don’t get emotional if you see a car that is not a perfect match to your plan but you’d like to have anyway.
You are likely to get emotional, and that is not a good idea when it comes to car bidding. Your best move would be to browse the auction categories and listings and narrow your choices that way. Choosing from only a couple of lots would help you focus and make the right decision faster.
When you have a working strategy, you will immediately know if a car is worth it or not. Always be aware of the regular market price of the same make and model with a clean title. When you set a budget before even browsing the lots, you should do your best not to exceed it.
The limited time you have to make decision does not mean you need to rush it. The time frame is always enough for a thorough research and a detailed calculation. When placing a bid, make sure you calculate all additional costs, such as transportation, auction fees, repairs, etc.
The buyer’s premium is usually a fixed percentage of the winning bid, and you need to calculate that. Once you win the lot, you will receive the invoice including all the expenses you must cover.
If you manage to learn everything about the car you are interested in, all that would be left is to observe the progress of its price and place an adequate bid. Of course, you can always put a maximum bid and wait for the auction to end. The system will bid on your behalf, and you will be notified if you’ve won the auction for the particular lot. If you are following the bidding war, pay attention to the increment. It often changes at a certain point, and the next bid you need to place could be more than you are willing to give.
The Verdict
In a nutshell, online car bidding has many advantages. Apart from the great variety auctions offer, there are great deals among them, too, not to mention the fact that you don’t need to attend the auction physically.
There is nothing like saving money on buying a car of making a profit after reselling it while sitting at home. Sounds like a great opportunity, right?
Get involved today by registering our website where you can bid on 150,000+ vehicles.
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