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Buying a Car at Auction - Ten Tips

Buying a car from a car auction can be a great way to get a bargain - if you know what you're doing.

If you have no experience of buying a car this way though, beware of making rash decisions and do your homework thoroughly! Before you make any decisions, please ensure that the car is checked thoroughly, and if you are unsure about any detail, get another opinion, preferably from someone with a qualification or experience in car maintenance.

It's also a good idea to speak to one of our consultants before you think of bidding - to find out how much you can borrow and how quickly you can obtain the loan.

Here are ten tips to remember if you are considering buying a car through an auction.

  1. Check the details of the vehicle thoroughly - Remember the adage 'If the price is too good to be true, it probably is' in this situation, especially for the top end vehicles. Review the description, model and price and know what you are buying before putting in an offer.
  2. Check the Seller's Feedback - If bidding online, check the feedback on previous sales that the seller has been involved in. Any trustworthy online auction will provide this information and it's a good way of checking the trading history of the seller.
  3. Ask questions - If there is anything that you are unsure of, ask the seller before the bidding begins. A trustworthy source will have nothing to hide and will be accessible and open to questions about the vehicle.
  4. Is the vehicle the right one for me? - Look beyond the price and consider the running cost - is the vehicle suitable for your lifestyle? Are you going to be using it for running around every day or will you be taking it out once a week for a Sunday run? How much will it cost replace parts and maintain the car? What is the age and its previous ownership history?
  5. Documentation - Does it have its V5 Vehicle Registration document and full service history?
  6. Value - Check the price of the same make and model to make sure that you are not being charged over the odds for the car. Have a look at Parker's car price guide for a start, or you can contact your local auto car dealership. Another good place to do a comparison check is Auto Trader, a magazine and online market place for vehicles.
  7. Vehicle reports - You may be able to obtain a report on the vehicle before bidding. Tesco Car Checker, for example, which can provide useful information to potential bidders.
  8. ALWAYS check the small print - This doesn't just apply to auctions but for any contract, before signing on the dotted line check the small print. How will the car be delivered and who will pay for it? Is the car insured during transit for example? If possible speak to someone who has been the process before and who has had experience of the finer details of the transaction.
  9. How will payment take place - NEVER pay with cash. Check beforehand how payment can be facilitated and how much it will cost to make the payment. It's advisable to pay by credit card or through companies such as WorldPay. Otherwise use an online payment service such as PayPal or NOCHEX for security, and this will also protect your credit card details.
  10. Check your bid - Decide on the most you are willing to pay for the vehicle and don't go over it, however tempted you are. Factor in additional costs such as delivery and payment costs before deciding on your cap. Remember, once the bid is accepted, you will be responsible for making the payment.

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