Tips in Increasing Your Chances to Win in Used Car Auctions
More and more people now are turning to car auctions to find cheap but reliable used cars for sale. These days, auction houses are adapting to the new normal, making their transactions online too. As a result, most of them now have the option to bid on used cars online from the comfort of their own home.
We all know that buying at an online auction is different from buying a car at a dealership. Although it is a fast-paced environment, you can be left behind or miss out if you are not well prepared for it. Given this fact, we listed some tips to help you increase your chances of winning in used car auctions, whether you’re a regular bidder or a new one.
1. Know the rules and procedures.
Each auction house has its own set of terms and conditions or rules for participating in the bidding. Therefore, the first thing to do when joining is to familiarize yourself with its rules and procedures. Don’t let yourself enter into something you didn’t know. Instead, make sure you read them so you know the expectations of the seller and the guidelines when you won the bid.
2. Bid at least 20% higher than the minimum bid price.
Don’t mistakenly think that the minimum bid price is the actual unit price. It is the minimum amount you can bid to win the auction. If you’re searching “how to bid in used car auctions,” ideally, auction winners bid at least 20% higher than the minimum bid price. Some even bid 30% higher if they want to increase their chances of winning.
Bidding this way will avoid you getting duped with the pros and somehow gives you a fair bid fight.
3. Make precise bids than round-number bids.
Customers who offer “precise” bids yield better outcomes than those who offer round-number bids. In most cases, if you give a round number and won, you usually have someone with the same bid and end up with a tie-breaker. To avoid these scenarios, bid a little bit higher than a round number. You never know where those tiny amounts can take you.
4. Use multiple offer forms.
In some used car auctions, they have an option for multiple offers. They let you make your offer in multiple units in one form then submit it all once. Multiple offer forms will save you time and effort inputting your details for each unit you’re bidding on. It will also give you the list of all units available for bidding, so you’ll have a clear picture of what units you’re interested in than checking it one by one.
5. Choose cash as your payment option as much as possible.
We understand that not all customers can pay in cash; some preferred car refinancing as their mode of payment. However, to get higher chances of winning and faster processing, it is better to choose cash as your mode of payment, especially if you have the means.
Paying the unit in straight cash after winning the bid will save time for both parties and make sure that you have 100% ownership of the car after purchase. In addition, this will keep you from any possibilities of you not getting approved in your auto loan application.
Used car auction sales aren’t for the weak at heart. If you can’t handle losing in a bid, then this might not work for you. An auction requires an ability to decide quickly whether to keep bidding or walk away. Unfortunately, it’s not always our day, but the good thing is that we only need to keep bidding until we get the car with the best deal we deserve.