Would you buy a car sight unseen? At online car auctions, and sometimes even at a used auto auction, a buyer is willing to do just that. Learn how to buy a car at auction by asking five crucial questions.
1. Do you have the title in hand?
It is not uncommon to be told that a vehicle’s title is “in transit.” At a used auto auction, this is a fancy term indicating that the auction house has physical possession of the car, but it does not actually have the title in hand. Sometimes this is due to the auctioneer’s failure to apply for a clean title early enough before the auction. At other times, it is a possible hint that there are some problems with the car’s history that have not yet been resolved. Do not buy a car without a title. If you do, you will not be able to properly register it or even legally sell it.
2. May I have a copy of the car’s title check?
An auto auction house that advertises its title checks may not invest a lot of money into the practice. It may choose to run the cheapest check possible, which may guarantee that the auction house has the legal right to sell the vehicle, but it may not alert you to a prior salvage or insurance total demarcation. If the auction house runs title checks, and if the check is of the bare bones variety, run your own check — before buying a car at auction — on the vehicles that interest you. You may be surprised to learn that a car has a rebuilt title notation, which actually decreases the automobile’s value by up to 30 percent.
3. Will you put it in writing?
Perhaps the most important lesson of how to buy a car at auction involves a thorough understanding of “buyer beware.” This should be followed closely by a crash course on “sold as is.” Buying a car at auction does not offer any implied warranties (like you might expect from a dealership) or even the understanding that there is recourse if the vehicle breaks down five minutes after leaving the auctioneer’s lot. If the seller is making a lot of promises, such as offering a 30-day guarantee, ask if the auction house will put it in writing. Oral promises are worthless.
4. What are your fees?
A used auto auction is supposed to offer you rock bottom prices. Some auto auction houses add hefty fees. These may include anything from the cost of the title check to a 10 percent buyer fee. Know ahead of time what buying a car at auction will cost you — in addition to the price of the automobile.
5. Has the car been in a flood?
If you are buying a car at auction, you hopefully know how to recognize flood damage, such as rusty brake drums or disks, sandy sediment in the trunk or under the floor mats. This question is a bit of a gotcha in that it forces the auctioneer to show his cards. If you find a car with this damage — and if the auctioneer is honest and admits that he either does not know or suspects that the car has indeed been flooded at one time — you can buy with greater confidence (though not necessarily the vehicle that was damaged). If the auctioneer does not admit to the flood damage, in spite of proof to the contrary, re-evaluate your commitment to buy at this used auto auction.