Good and bad deals in car auctions have their equal share. Some first time buyers who've had a good deal may call it luck, but others who are more experienced at car auctions are just responding to some good opportunities. Here are the pros and cons of buying at an auto auction:
Pros
People with limited budgets and who want to buy a car find that there are a lot of choices in car auctions as compared with conventional car distributors and dealers.
For regular cars sold at auctions, buyers could secure reliable if not the best cars at very cheap prices. In most cases, organizers make it a point that the cars they sell are checked well for any damages or malfunctions and are in good condition.
At car auctions, even the best and most popular models are being sold with an added perk- they come at lower prices.
For car collectors, there are available auctions where vintage cars are featured. This may be a good opportunity to obtain some of the best cars without having to go through negotiations with owners who are unwilling to sell their vintage cars. Also, car auctions present great opportunities for buying really old cars without having to pay premium prices for the "vintage tag".
Cons
Cars at auctions are sold at relatively lower prices because the items are typically second-hand autos repossessed by the mortgagors or the federal government. There is an added danger to this- there are cars labeled as second-hand but are not at all second hand, some of them could be third hand or more.
A lot of cars at auction are not in mint condition, many of them even have mechanical flaws. Such flaws may not be apparent during the auction due to refurbishments, repaints and fixes that were made on the car to make the item look their best. These flaws will start appearing once the buyer uses the car.
Some cars that are being auctioned are "hot" cars, meaning these may be smuggled or stolen. Chances are you'll have problems regarding the car's ownership.
Unlike autos being sold at regular distributors and dealers, those sold at auction usually do not have insurance coverage or warranties.
Different car buyers have different opinions on whether it is good or bad to buy a car at an auction. Thus the buyer has to rely on his best judgment backed by a considerable amount of research and use of gut feelings.
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