With the car market in such flux, more buyers are turning to online car auctions to find their next vehicle. Whether it’s used or new, cars from the lot often come with high prices, but auctions like:
- Copart
- IAAI
- Manheim
- eBay Motors
They all offer deals you won’t find at traditional dealerships. The reason these deals can be so attractive is simple: auctions aren’t bound by the same inspection and safety regulations that dealerships must follow. That said, stepping into the auction world does require a basic understanding of cars. But with a bit of preparation, research, and strategy, you can secure your dream car at a fraction of the typical cost—making the auction experience both exciting and rewarding.
Bid Confidently at Any Car Auction
When you choose an auction to save money, it’s essential not to spend more than you can afford. Keep in mind that the final bid price is not the total cost—there are several additional expenses you need to account for:
- Repairs and maintenance: Auction cars don’t go through a full inspection like dealership vehicles. Some cars may need work, which is why many mechanics attend auctions, they buy, fix, and resell cars for profit.
- Shipping costs: With online auctions, the car you win may not be nearby. You’ll often need to arrange transport to your location.
- Other fees: Taxes, registration, and auction service fees can add up, so make sure these are included in your budget.
Example: Let’s say you win a car at an online auction for $8,000. On top of that, you’ll need to budget for:
- $1,200 in minor repairs and maintenance
- $500 shipping to your home
- $300 in auction and registration fees
This brings the actual cost to $10,000, so if your maximum budget was $9,000, you would have been overextended. By planning ahead and factoring in these extra costs, you can bid confidently without risking overspending, increasing your chances of driving away with a great deal.
Know What You’re Looking For
Once your budget is set, it’s time to narrow down your search. Knowing the make and model you want will save time and help you focus on the right listings. One of the biggest decisions you’ll face is whether to buy a used or salvaged vehicle:
- Salvaged cars: These vehicles may not be running, but with some repairs and TLC, they can become incredible deals. Imagine getting a luxury car, even a Ferrari, for just a few thousand dollars! If you have the space, skills, and time to fix a salvaged car, it can be a highly rewarding option.
- Used cars: If repairs aren’t your strength, stick with used cars that are already road-ready. Pay close attention to mileage, condition, and history. A Carfax report or similar vehicle history check before you bid can prevent costly surprises down the line.
Bid Strategically to Win Your Car
You found the perfect car. It’s low mileage, the Carfax report shows only minor issues, and your best friend offered to help with any repairs. It’s time to start bidding. Don’t get caught up in the fun of a bidding auction. This is serious, and bidding can quickly get out of hand. Know your max bid and be prepared to walk away if the bidding gets too high.
Key tips for strategic bidding:
- Set your maximum bid: Know the highest amount you’re willing to pay and be prepared to walk away if the auction exceeds it.
- Plan your increments: Decide in advance how much to increase the bid each time. Some bidders wait until the end to swoop in with a “hero bid” – choose the strategy that works for you.
- Use unconventional numbers: Avoid round numbers like 0 or 5. For example, if someone’s max budget is $2,000 and you bid $2,007, they may hesitate, giving you the advantage.
- Stay focused: Don’t get caught up in the excitement – stick to your plan and budget.
- Watch competitor patterns: Observe how other bidders increase their bids – this can help you time your moves for maximum advantage.
- Consider auction timing: Some online auctions are less competitive during off-peak hours, increasing your chances of winning.
- Research the vehicle beforehand: Know the car’s market value and typical auction prices so you can identify a true bargain when it appears.
- Check auction rules and fees: Some platforms add hidden buyer fees or shipping costs – factor these in before you bid.
- Test small auctions first: If you’re new, practicing on smaller or low-cost auctions can help you learn the pacing and bidding behavior without risking too much.
Extra Note: Before you bid on Copart, IAAI, Manheim, or similar auctions, make sure to read the official “Terms & Conditions,” “Fee Schedule,” or “Buyer Requirements” pages on the respective auction site – that’s the best way to know exactly what you’ll pay and what rules apply.
You Won!
Congratulations, you just scored a great deal! Don’t forget to sign and file any necessary paperwork with the auction house. They will typically help coordinate shipping or pickup, but if you prefer to arrange transport yourself, you can choose from open or enclosed carriers, terminal-to-terminal shipping, or door-to-door delivery depending on your budget and vehicle type. Having the auto shipping quote you prepared earlier will make this process smoother and ensure you stay in control – so whether you use the auction’s service or handle shipping independently, you’ll look like a pro.