Whether you’re looking for your first car or hunting for a great deal on a newer model, car auctions can be a treasure trove of opportunity if you approach them with a clear strategy.
These tips will help you bid with confidence and make informed decisions on auction day.
- Do an inspection beforehand
Due diligence before the gavel falls is essential.
For many auctions, you’ll be able to browse the cars online first to see if there are any suitable for you.
If so, arrive early and inspect the vehicle(s) in person.
Ask what you can and can’t do. For example, whether you can start the engine, test the electrics, open the bonnet or get a feel for the brakes.
The more you can check, the more confident you’ll be in your valuation.
- Define your ceiling price
Before you step into the room or log on, establish two numbers: your ideal price and your absolute ceiling.
Your ideal price is the amount you feel comfortable paying for the vehicle, based on your research, but it’s not your limit.
Your absolute ceiling is the highest point you’ll go to. After that, the deal may no longer be financially viable for you.
When the adrenaline spikes, having a physical reminder of your limit (like a card) may help you resist “auction fever”.
This is the emotional urge to win at all costs that may lead to overpaying.
- Establish bidding dominance
How and when you place your bid communicates strength to others in the room.
A hesitant or slow hand-raise could signal to competitors that you are approaching your limit, which might encourage them to keep pushing.
Alternatively, wait until the activity slows down before entering.
Jumping in late can sometimes catch tired bidders off guard, allowing you to secure the lot just as others are losing steam.
- Budget for all auction costs
The hammer price is rarely the final amount you pay. There may be auction fees and admin costs to consider.
Don’t forget to factor in any applicable buyer’s fees, Value Added Tax (VAT) and transportation costs if the vehicle needs to be moved after the sale.
Also include costs for things like vehicle insurance and storage fees.
If these aren’t in your budget, a bargain can become more costly than anticipated the moment the gavel falls.
- Know when to walk away
The most powerful tool any bidder has is the ability to keep their hands in their pockets.
If the bidding surpasses your predetermined ceiling by even a single increment, stop.
Remind yourself that there is always another lot.
Walking away empty-handed is a victory of discipline over impulse.
Car auctions can be exciting and rewarding, but success hinges on preparation, discipline and clear thinking.
Stick to your plan, kno