So you’re getting ready to attend an automobile auction to purchase a classic or exotic car. Is this your first time? Have you done your preparation ahead of time to know about the car or cars you are thinking of trying to buy?
I said trying to buy because you will be bidding against other people who are interested in the same car and with that said the auction process begins!
I know that many of you have been to the auctions before, all the big named auction houses put on quite a show when it comes to the selection, the action, the excitement and all there is to do when you attend.
Many of these companies have been in business for decades and have an enormous following that buys and sell at many of their auctions throughout the year but what they know about the auction you may not know.
Today I want to take a few moments of your time to educate you about the buying process at an auction. Do you think you can buy an auction car for less than at a dealer? Here are some facts to help you determine that. I am going to use a $50,000 car as an example to help
First and foremost and one of the two important items on your list is the car. At this point, you have made a decision on what car you are hoping to purchase while you are there. This car could have been a childhood dream, or the first car you ever had or just the car you really want. The second item is budget. Do you have a budget in mind for purchasing that car? Have you looked at similar cars on the web or at a dealership to see what they are selling for? If you have done this then you have an idea of what you hope to spend to get the car you want so let’s get started.
Travel and hotel expenses to attend the auction cost: $1500
Traveling may be as local as your backyard or a lengthy car ride or plane flight plus the hotel, rental car, food, gas and misc expenses. Typically when traveling to an auction you will spend a minimum of three days there as you will want to enjoy all there is to see.
Bidder Registration cost: $500
Auction houses require all buyers and sellers are members of their company. Typically a membership is good for a year so you can attend any auction during that time to look or buy a car. Since we are not talking about selling the entry fees are not included.
Standard 10% buyer’s fee:
When you purchase a car from the auction you will pay 10% of the selling price of the car,
Lack of a one year extended warranty cost: $1500
When purchasing a car at the auction you are doing it AS IS with no warranty and no guarantee. This could be a lot of money to fix up your classic cars.
Shipping the car home: $1500
After you have made your purchase you will now need to get it home. In most cases, you will have to ship the car. On average an enclosed carrier will charge you $1500 and could take up to 10 days to be delivered
No test Drives: PRICELESS
When buying a car at auction there are many things you can do, you can start the car, you can see that everything is functioning, you can crawl under the car to make sure it is solid but you can never test drive it, no exceptions! Here we allow you to bring in an inspector and you could at least get a virtual test drive.
Your $50,000 car has now become $60,000 before you even get it home.
You were the winning bidder and were willing to pay more for that car than anyone else there. Now you need to ask yourself, was there another bidder in the room?
Auctions are fast-paced, exciting and have lots of moving parts from the auctioneer yelling outbid numbers to the bidder's assistants on the floor yelling and your auction assistant pressuring you to keep bidding you get caught up quickly and before you know it has purchased the car you wanted for way more than you anticipated.
There are some other things to take into consideration at an auction. The auction house is selling a car based on the information the seller has provided. They are only representing that information and are not responsible for any mistakes or incorrect information provided.
You are not allowed to send the car to a reputable repair facility prior to purchase. This is the chance you take when purchasing a car.
There are no representatives or you may not be able to meet the owner to ask any questions prior to purchase.
Now the car has arrived at your location and off the truck, it comes and just as you decide to take it for your inaugural drive it breaks. Now you have to get it to a repair shop to find out what the problem is and then you will have to add that expense as well.
So tell me, did you get a good deal?
Flemings ultimate garage has become the largest classic and exotic car dealer by taking care of our customers even after the sale. We have a full staff of trained sales enthusiasts that are here to assist you and answer all of your questions to help you buy the right car at the right price.