Public auto auctions sell vehicles to private consumers at below market value, but buyers must be cautious of scams and poor investments. Online, police and government auctions are available, but buyers should research vehicles and inspect them thoroughly before purchasing.
Public auto auctions are auctions intended to sell automobiles to private consumers within an auction format. Some private buyers prefer to purchase vehicles at public auto auctions because they can be purchased at less than fair market value. However, consumers should be aware that they are solely responsible for spotting scams and cars that are not worthwhile investments. At many public auto auctions, vehicles are sold “as is” and sales are final.
Auto auctions can take many forms. Consumers can purchase vehicles from online auto auctions, wholesale auto auctions, public auto auctions, police and government auctions, and insurance and salvage auctions. Auctions that are generally made available to the public without any additional requirements are online auto auctions, public auto auctions, and police and government auctions.
Online auto auctions present some challenges for the novice consumer. First, since the vehicle is purchased remotely, the potential buyer cannot inspect it personally. That’s why it’s important for the potential buyer to do as much research as possible on the vehicle with the information provided. Using a Vehicle Identification Number (VIN) to perform a thorough title search can save a potential buyer from losing their investment. Online auctions can also provide buyers with an escrow service option where the seller is not paid until the buyer takes delivery of the car; In addition, the buyer and seller may agree to have the vehicle inspected by certified mechanics or other professionals for damage after the car is purchased.
Police and government auctions are public auto auctions that may be prematurely dismissed by the individual consumer. These types of auctions are open to the average consumer and typically sell vehicles seized by the government or dismantled by government agencies. Consumers should exercise the same type of caution at these auctions as they would at public auto auctions. Vehicles from this source may experience the same issues as vehicles from other auctions. Title histories should be investigated, as these vehicles may have been abandoned for years, have been stolen, and can come with high maintenance costs.
Regardless of the type of public auto auctions preferred, consumers should exercise common sense and caution when buying cars at auction. They should become familiar with the type of vehicle they are interested in purchasing and research its value and title history. All contracts should be closely examined and no vehicle should be purchased without the benefit of a thorough inspection.
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