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What you need to know when buying a car at auction

A car auction is a place where you can find a variety of used cars and you can generally by one cheaper than one that is advertised elsewhere.

You will need to collect general information such as the price, type, color, make and model of the cars available that day or evening of the auction.

At the auction:

  • First attend a few auctions to understand and watch before participating.
  • Arrive at the auction early and read the catalogue available to understand and decide on the car or cars you plan to place a bid according to your budget.
  • Examine the car engine, bodywork, tires etc. before the auction starts. This gives a general idea about the car’s condition.

The auctioneer will describe the history of the car before the bidding begins.

  • The car must not have any fault in the engine, transmission or steering etc.
  • The auctioneer will mention any defects in the car as reported by the seller.
  • The car is for sale without warranty or guarantee.
  • The car is examined by an engineer and the report will be available to the audience before the sale.

How to bid:

  • Attend two to three auctions to understand the process. Be sure to know the rules and regulations of the auction.
  • Observe the bidders. The bidding is done by raising the hand or catalogue and the highest bidder buys the car.

After bidding

  • If you are the highest bidder, then you need to submit a deposit to the clerk and you need to sign a document and pay rest of the cash at the cashier’s office.
  • A buyer’s fee (auction commission) has to be paid and added to the purchase of the car.
  • The car should be insured, taxes paid and other legal formalities completed before you take it home.

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