Buying a car at an auction definitely sounds inviting, and for most individuals it could also be a wise investment choice to consider. Car auctions are regularly held at cities, towns and communities across the US and in most developed countries.

Most individuals who are looking for a good car deal will definitely line up and bid to purchase a car during any ongoing car auction in their area. Buying a car from an auction seems like a good deal for you however, you need to know that it has does its pros and cons which are mentioned below.

Buying a car at an auction definitely sounds inviting, and for most individuals it could also be a wise investment choice to consider. Car auctions are regularly held at cities, towns and communities across the US and in most developed countries.

Most individuals who are looking for a good car deal will definitely line up and bid to purchase a car during any ongoing car auction in their area. Buying a car from an auction seems like a good deal for you however, you need to know that it has does its pros and cons which are mentioned below.

Pros of buying a car at an auction

The cars are quite cheap

Cars which are found at an auction are usually much cheaper than cars sold at the conventional car dealerships or car distributors. Most of the cars sold at auctions are usually more than 70% cheaper than most dealerships which is why most individuals prefer to buy a car at auction rather than from a dealership.

You have a wide selection of cars to choose from

It is only at an auction that you will find different brands of cars at being sold off at give away prices. This is offers you the opportunity choose a car of your choice which can turn out to be a good deal for you.

If you find the type of car that you have always wanted to own but couldn’t afford it then. If you are lucky, you can find a good vintage car at an auction for the price of a brand new car.

Good car deals

It is only at a car auction where you will have the opportunity to purchase a car of a model and brand of your choice at an affordable price.

If you are lucky, you can find many vintage cars for sale at a giveaway price.

Cons of buying a car at an auction

Re-possessed cars

One of the disadvantages of buying a car at an auction is that, most of the cars being sold have been confiscated or re-possessed which means that you could be the 4th-5th owner.

Most seized or repossessed cars usually have past traffic offenses records which were probably not resolved and could become a problem for you as the new car owner.

The car might be in a bad mechanical condition

Most cars sold at an auction are usually not in a good mechanical condition which is not cost effective for you as a buyer. Most of the cars found at an auction are refurbished and made to look good only during the auction but when in use the damages and flaws of the car might start appearing.

The car might lack insurance coverage and warranty

Most of the cars sold at auctions usually don’t have insurance coverage or warranties unlike cars sold at car dealerships.

You face the risk of buying a stolen car

Another disadvantage of buying a car at an auction is the fact that you might be buying a car which was illegally smuggled into the country or was stolen and sold. This may cause your car ownership problems in future.

Once you buy the car you can’t return it

Another major con of buying a car from an auction is that once you purchase the car you will not be able to return it even if you find that it wasn’t a good a car after all.

Most auction agencies don’t conduct an inspection on the cars

You are deprived the opportunity to buy a car of your choice which has been inspected and has been declared as being in a “good mechanical condition” car. This also denies you the opportunity to take the car for a test drive which means that you are buying the car “blindly” without knowing how the car sounds or feels like when in motion.

When the car has a low resale value

When you buy a car from an auction, the resale value of the car will be much less than in the event that you consider selling the car in future.