How To Avoid Overpaying At Used Car Auctions?

By Author: Jacob Nicholson
Total Articles: 47
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Buying through Used Car Auctions can give you access to a wide range of vehicles, but the winning bid is only one part of what you may eventually pay. Buyer fees, internet bidding fees, retrieval charges, storage and other costs can apply depending on the auction provider.

The key is to decide your maximum total cost before you start bidding and stick to it.

Research the Vehicle Before Bidding

Start by researching the vehicle rather than focusing on the current auction price. Check the registration, VIN, mileage, MOT information, service history and available condition reports where provided.

Manheim advises buyers to review vehicle information, images, condition reports and grading before creating a shortlist.

Copart also recommends checking vehicle details, fees, reports and other information on the lot page before bidding.

Calculate the Real Buying Cost

A £5,000 bid does not necessarily mean the car will cost £5,000.

Depending on the auction, additional charges can include:

• Buyer fees
• Internet or bidding fees
• Vehicle retrieval charges
...
... • Storage charges
• Applicable taxes or other charges

For example, Copart UK lists buyer fees, internet bid fees and a lot retrieval fee as additional costs.

Before bidding at Car Auctions, check the auction provider's current fee schedule.

Set a Maximum Bid

Choose your maximum bid before the auction becomes competitive. Your maximum should reflect the vehicle's researched value and the other costs you expect to pay.

Copart's bidding system allows buyers to enter a maximum preliminary bid, with its automated bidding process placing incremental bids up to that amount.

A predefined limit can help prevent an exciting bidding sequence from pushing your purchase beyond your budget.

Check the Vehicle Condition Carefully

Do not judge a vehicle solely from photographs. Review the available condition report, damage information and vehicle history.

Manheim uses condition grading and inspection information to help buyers assess vehicles, while Copart provides lot information and damage codes for its vehicles.

If the vehicle requires repairs, include those expected costs in your maximum budget.

Understand Auction Terms

Learn terms such as reserve price, sold as seen, and other sale conditions before placing a bid.

Manheim defines a reserve as the seller's minimum acceptable price and explains that vehicles sold as seen come without a guarantee about mechanical condition or quality.

Understanding these terms can help you judge what you are actually buying.

Use a Total-Cost Calculator

Where the auction provider offers one, use its cost calculator before bidding. Copart's Total Cost Estimate Calculator allows buyers to enter their maximum intended bid and view an estimated total including applicable fees.

For an Online Car Auction, this simple calculation can help you avoid treating the winning bid as your complete purchase price.

Walk Away When the Price Gets Too High

A vehicle that exceeds your calculated budget may no longer represent good value. There will always be other vehicles and future Used Car Auctions to consider.

The safest approach is simple: research first, calculate the complete cost, set your maximum bid and do not exceed it.