Car Auction Tips - Go Where The Dealers Go & Get A 40% Discount

by Vinod Gorasia

Most people who want to buy a car go to their local highstreet showroom or buy privately via the classified ads. Either way, they are overpaying. Go where dealers go and bag a bargain at a 40% discount from showroom prices. Here’s how...

1. Uncover car auctions where you can buy heavily-discounted cars. There are two main auction groups: British Car Auctions and Manheim Auctions.

Check where your nearest auctioneer is based. You can then call to see which auctions run and when. Typically you’ll find auctions for non-runners, older cars, newer cars, fleet vehicles and commercial vehicles. Choose which ones interest you.

There is often an overlap between‘older’ and ‘newer’ car auctions. Older cars that slip into a newer car auction and vice versa may be a little cheaper in the ‘wrong’ event! Go to one or two auctions before bidding to get a feel for them.

Also, make sure you check the terms and conditions of bidding in advance. Check what you’ll need to pay in cash at the fall of hammer and when you have to settle. Get this information from the main desk.

2. Don’t waste your time by arriving too early. Go along as close to the start time as possible. Some cars aren’t entered until the auction is almost underway. On arrival, get an auction catalogue. They’re usually little more than typed-up sheets listing cars. Don’t rely on them completely. Some cars may not come through. Others may turn up unannounced. The running order may change.

Double-check the terms and conditions of bidding. You might need to register and take a paddle to bid, for example. Ask where the cars are and walk round them to see what’s what. It’s sensible to buy what you’ve driven before so that you can spot a good one more easily. Take a friend with you for a second opinion.

3. Make sure you know what you are getting at the auction - check the information sheet on the windscreen. This gives you the key facts - manual or automatic, mileage, MOT, service history and seller (if it’s part of a fleet). Do check whether the car is a manual or an automatic - an easy mistake to make.

Generally, you’ll want a low mileage car (under 10,000 miles a year) and with some MOT (six months or more). Don’t expect any tax. Service history may not be stated, but papers could be kept at the office. You can then do all of your external checks, looking at paintwork, tyres, exhaust and so on.

Check under the hood when the engine’s running. Open the doors and check inside. The glove compartment may have some paperwork in it; service history for example. Remember to check the boot for a spare wheel.

4. Know how to get the car you want at the price you want to pay. Have some idea of what you’re prepared to pay. Check the car guides in newsagents for ‘trade figures’, although auction prices can be substantially lower. It’s a good idea to have a maximum bidding figure in mind - the price you’ll not exceed, even in the heat of the moment.

Some events offer better buy-low opportunities than others. If you go to daytime events you’ll be up against traders who never overpay. They need to leave a sell-on margin in there. That’s a big help! Go to evening auctions in bad weather and when it’s dark and you’ll have fewer members of the public there. That helps too!

Visit in the summer when many wouldbe bidders are away on holiday - fewer bidders usually means lower prices.

5. Bid successfully and get the cheapest possible deal. It’s helpful to work with a friend and a pair of mobile phones. Some auctioneers have two selling areas. Cars that don’t reach their reserves in one are sometimes put through the other area straight after. Sellers may reduce their reserves in-between.

Stand where the auctioneer can see you. Concentrate on what you’re doing, not other bidders. It helps to stand at the back in a central location: you’ll feel more in control. Never open the bidding. Auctioneers inevitably call for a high opening bid. It can be higher than the price the car will eventually sell for.

Wait for the bidding to slow,with bidders dropping out and the bidding going up more slowly. Then bid, by raising your hand clearly. Know your maximum bid. If you win at that price or less,you’ve got a bargain.

Best-Buy Bargains: If several similar cars are coming through, wait for the later ones. Everyone rushes to bid for the first few ones. Later, there will be fewer bidders left and prices can drop even more.