Car Auctions 101
Car auctions are a good place to get good a bargain on cars. But buying cars from auctions can be very complicated. This is particularly true for the uninitiated. Of course the cars in auctions are generally cheaper. But they are cheap because they lack the guarantees that come with cars bought from dealers. The rules in auctions are simple, you bid an item, you pay for it, and you own it.
What you’ll need if you’re planning to buy a car in an auction is a good eye, good observation skills and a willingness to learn the car auction process.
You can even make it a business by buying cars at auction and then selling them at a profit. There are several people who have made huge profits by buying and selling cars at auction.
There are basically two kinds of car auctions, local car auctions and online car auctions. Each of the auctions works differently. Each has a different set of rules so you must study them very carefully if you are planning to buy a car from either kind of auction.
If you want to buy a vehicle in a car auction you must first pre-register with the local auction you want to join. The pre-registration process won’t take much of your time and will provide you all the essential information that you will need in order to buy a car. An auction site will often have an auction staff who will explain to you the rules of their auction site and the procedures and instruction on how to participate and bid on the cars.
It is wise to inspect the cars before the actual bidding begins. Ask the auction organizer or staff if they can allow you to take a closer look at the cars before the start of the actual auction. Another wise decision is to set your payment limit before the actual sale. This way, you won’t fall victim to the trap of overbidding.
As in other auctions, it is very important that you signal your bids carefully to the car auctioneer to avoid confusion. Settle your transaction as soon as the auction ends. Look for the block clerk and settle your accounts with him. A car auction staff will usually be available to assist you when you are ready to pay for the vehicle you have won. He should also be able to guarantee you a good title for the vehicle.
You must also check the vehicle after you have won and settling your account. Take the vehicle for a test drive and make sure that it conforms to the guarantee and representation made during the auction.
Most auction sites would accept check or credit card if you cannot pay the car with cash. An auction staff will also usually give you a third party financing offer. It is advisable though to have your own finances ready before entering a car auction. Outside financing is usually cheaper than most in-house financing of auction sites.
Ask for an invoice copy from the auction staff. This will enable you to drive or ship your newly bought car to your location. Most car auction managers will give you good deals on shipping arrangements so inquire about this.
There really are no significant differences between a local auction and an online auction. Online car auctions work more or less the same way as local ones. The only disadvantage of online auction sites is that you won’t be able to inspect the car as you would in an actual car auction. In participating in online car auctions be sure that you will be provided with all the necessary information about the car upfront and that there is an actual photograph of the vehicle.
Cars bought from an online auction are usually shipped to the buyer for a minimal fee. Inspect the car immediately upon arrival at your location to minimize risks.
You are now ready for your first car auction. Happy bidding!
Online Car Auctions vs. Local Car Auctions
Lemon Law
The Used Car Lemon Law: The Used Car Buyer's Best Friend
You've just bought yourself a used car. The car was cheap and you left the used car lot with the feeling that you managed to come out reasonably well. Then the car conks out - what happens now?
Under other circumstances, you would probably have no choice but live with your choice. Fortunately, there is a law that would help you. The used car lemon law is the most useful law for any person who buys a used car. The law provides a legal remedy for those buy or lease used cars that turn out to have outstanding mechanical difficulties, those which are better known as "lemons".
The law has used car dealers give their buyers a written warranty. The warrant requires dealers to repair any defects found in the car, free of charge. The dealer can also choose to reimburse the repair costs of the repairs to the buyer. It also notes that if the car isn't repaired after a number of attempts, the buyer is supposed to receive a full refund of the purchase.
For the law to cover your purchase, check your local state laws. Usually, these four conditions should be met for the lemon law to be invoked:
1) The car was purchased, transferred or leased after either a) eighteen thousand miles of use or b) two years from the original release; and
2) The purchase or lease price has the value of at least one thousand five hundred dollars; and
3) The car has been driven less than or equal to a hundred thousand miles at the time of lease or purchase; and
4) The car was used for non-commercial purposes i.e. personal use. This means the car should have been used for household or family purposes. This includes personal transportation to and from work and household errands. The car could have been used for a mix of business and personal use but it still should have been used predominantly for personal use.
The law can also be used to cover motorcycles; however some states exempt other vehicles from the used car law. Note that the transfer of ownership of a used car is also covered by the law; however a private purchase from a private individual is not protected by the law. You can choose to consult a lawyer to see what sort of action you may take.
Remember the law and check with your state before you buy a used car. If your state has such a law, you should feel safe about your purchase when you leave the used car lot.
