- 1 how to auction a car
- 1.1 How to Sell a Car Through an Auction How to Sell a Car Through an Auction
- 1.2 How to Buy a Car from a Dealer-Only Auction?
- 1.3 Know Your Way Around Our New Jersey Car Auction
how to auction a car
How to Sell a Car Through an Auction How to Sell a Car Through an Auction
If you're having trouble finding a buyer, or you think your car could be worth good money, you can sell at an auction. Some auctions are specialized, while others are more general, so to attract the right buyers and achieve the best price, you want to enter your vehicle in one dealing with cars. After you've identified the establishment you want to use, proceed with the following steps.
Step 1 - Make Sure you Can Legally Sell
No matter the type of auction, you will need to first consider if you can legally sell your car. You’ll need to either have the title in your name or be holding a dealer’s license to do this. If you have neither, find out how you can get them or abandon this idea altogether.
Step 2 - Establish a Sale Price
You also need to be very aware of the value of your vehicle if you hope to make any money. Take into account its age, any wear, and, if applicable, its rarity. Finding the values of most cars is quite easy. You simply have to consult the blue book, the auto industry's standard for such a thing. With collector vehicles, you’ll need to research what similar models in the same condition have achieved at sale.
In both cases, use these figures to set your reserve, which is the lowest price you’ll formally accept. If there are no bids above the reserve price, the car will be returned to you, unsold. Set the reserve for the absolute lowest figure you’ll accept.
Step 3 - Sell at Your Choice of Auction
As mentioned previously, there are several kinds of auctions you might use. Each will have some varying procedures, so familiarize yourself with each and never be caught off guard.
With collector cars, your best route is to go with a company that specializes in collector car auctions. You'll find several dotted around the country. You’ll need to fill out a number of forms and give the company several pictures of your vehicle. You will pay a consignment fee as well, which is usually nominal. Be aware that the auction company will also take a percentage of the selling price, so figure that into your reserve and your asking price.
If your car has engine problems or body damage, you might consider a public auction. While most dealers or private buyers will refuse to purchase a damaged vehicle, these events do draw in other buyers from scrap yards and elsewhere. They will see some value in cars in all kinds of conditions. Just be prepared to accept a low price.
These days, plenty of people sell their cars via internet auctions. It’s not a complicated procedure, although you can do a number of things to increase your chances of a sale. Be honest when you describe your car, especially if the body has sustained any damage. You don’t need to write an essay about the vehicle, but do offer a comprehensive description. Make sure you take plenty of photographs as well, inside and out, to show the car's condition. One of the pictures should be of the odometer, so you have concrete evidence of your advertised mileage.
You will have to pay to list the vehicle, and you’ll also have to pay a small percentage of the selling price to the auction site. Unless you simply want to be rid of the automobile, set a sensible reserve price and specify that the buyer has to collect the car.
With any luck, you will be rid of your car quickly and free to spend the extra money you've made.
How to Buy a Car from a Dealer-Only Auction?
Car auctions take place all across the nation and on the Internet. Online auctions are open to people in the U.S. and other countries. Some auctions are open to the public so that anyone can bid on a car. Others are dealers-only auctions that require bidders to have a state-issued dealer license before they can attend.
The appeal of buying cars at wholesale process has led to some people getting their dealers license just so they have access to closed auctions. This is a difficult process that involves extensive paperwork and strict requirements.
The process also differs between states. In most states, you need to buy and sell a minimum number of cars annually in order to qualify. If you only want to buy one or two vehicles, the process of getting your own license probably isn’t a good one for you.
Car brokers are car experts who negotiate deals for their customers. A broker is required to have a dealer license so they are able to access dealer only auctions. This also means that a broker has access to many more vehicles than you will have alone. By facilitating the choice of wholesale vehicles being sold on dealer auction sites to you, the broker makes it possible for you to find the best deals available.
People in many countries appreciate the quality and style of American made cars. According to Huffington Post, the quality of American cars has topped that of foreign models. With more people looking for cheap cars from the United States both here and overseas, getting reliable car broker services for access to more cars is imperative.
Car brokers can facilitate the access to new, used or salvaged cars that are ideal for all types of drivers in any location. Also, they provide services based on their expertise of vehicles and the various auctions the vehicles are purchased from. A broker can provide you with a safe bet that meets your criteria and help you through the auction and buying process.
Besides helping you find and buy the car you want from the many cars being sold at dealers only auctions, a broker also provides a number of additional services. They can take care of transporting the car to your location in the U.S. or in any other country. You won’t have to invest your time and energy into filling out and filing paperwork that you are not familiar with.
If you are interested in starting your own exporting business or in working as a car dealer, getting your dealer license might be the right solution for you. For most buyers, however, the simplest way to have access to dealers only auctions and get high quality vehicles for the lowest price is through a car expert who already has the knowledge and license to do the job for you.
Explore our Vehicle Auctions, as well as finding more information about How These Auctions Work.
Bid on over 200,000 vehicles for sale right now.
THE FIRST thing you need to know when buying a car on auction is that it is sold “voetstoots9rdquo;, which means that you buy the item as is, so you need to make sure you do your homework.
Unless you take the time to bring any defects to the attention of the seller before you make a bid, any defects you find after you buy the car will be your problem and the seller will not be liable in any way.
You can buy either by way of a closed tender or at an open auction.
You send your offer to the auction house in a sealed envelope. All the sealed offers are then placed in a locked box. At an agreed time on the day of the tender, the box is opened and the car sold to the highest bidder. The disadvantage of this method is that you have no idea what the other bids are and you can only bid once.
You have to pay a refundable deposit, which differs between auction houses. For example, Burchmore’s requires a deposit of R5 000 per car. For example, if you plan to bid on two different cars, you will have to present a deposit of R10 000.
You can pay with a cheque, credit or debit card, or you can make an electronic funds transfer (EFT). It is worth noting that EFTs can sometimes take a few days to reflect in the recipient’s bank account and your EFT must be reflected in Burchmore’s account on the day of the auction. Most auction houses have accounts with all the major banks to accommodate this.
If you choose to pay by credit card, Burchmore’s will retain your credit card in a sealed envelope and will only swipe the card for the deposit payment if your bid is successful. After your deposit has been paid, you are issued with a bidding number. Remember that you also have to pay the following costs at a car auction:
. The handling or documentation fee. This is also known as the administration fee, which ranges from R1 500 to R2 500.
. The auctioneer’s commission, which can vary from 2% to 10%, depending on the auction house and type of vehicle.
. VAT, currently at 14%.
If you need to finance the car, it is preferable to have this prearranged because you have to pay the balance within 24 to 48 hours. If you are unable to secure finance, you forfeit the deposit, but you are not liable for any other costs. Once you have bought the car, you are responsible for the costs of a roadworthiness test and licensing the car.
Darryl Jacobson, the managing director of Burchmore’s, says after you have calculated what you can afford to spend on a car, you should go to a car dealership to look at the prices of second-hand cars.
“This will give you an idea of what car you want to buy and also the retail value of the car. Then approach an auction house to see what is available,” he says.
Before the auction starts, you will be given a guide that lists the trade price of each car that is being auctioned.
This guide can be used to make sure that you do not pay too much for any of the cars on auction. You can arrange to view the cars before the auction, although this may only be possible on the day before the auction, depending on the auction house.
For example, Aucor is able to give you a list of cars that will go on auction up to a week in advance. Contact the auction house directly to arrange a viewing. This will give you the opportunity to check the car’s service book.
You will also be able to get into the car, start the engine and examine the car thoroughly, but will not be allowed to take the car for a test drive.
The most important part of the Auction Process is selecting the vehicle that is perfect for YOU! Unlike regular car dealerships, our NJ used car auction has hundreds of vehicles of nearly every make and model on our lot.
Know Your Way Around Our New Jersey Car Auction
You start by browsing our massive inventory, either online or in person. We are here everyday but Sunday for you to browse, inspect, and drive all of the vehicles on our sprawling four and a half acre lot. We offer our vehicles at wholesale prices and below Kelley Blue Book value (see this for yourself on our website, where we have both prices posted for your convenience). We also have a free CARFAX report available with every car, truck, van, and SUV on our lot, so when it’s time to participate in the auction, you know exactly what you’re getting!
Our friendly and knowledgeable New Jersey representatives will guide you through the used car auction selection process, including explaining the Register to Buy notice process, all without the high pressure sales pitch of an auto dealership. Then, if you find a vehicle that is right for you, you can register to bid, either in person or on eBay. If bidding isn't your thing, don't worry, you can select our Buy It Now option, and drive your new vehicle home in minutes. We provide all the paperwork to you, including bill of sale, title and temporary license plates.
We’re dedicated to making every step of the buying process pleasant and easy. That’s why we offer several ways to pay for or put a deposit on your new-to-you vehicle! You can pay with cash, cashier's check, credit or debit cards, and even through PayPal button. It’s a great and secure way to transfer money, and you don’t need a PayPal account to use it!
Financing is also available to meet your specific needs. We work with dozens of different lenders to get you the best deal possible. We offer guaranteed credit approval for everyone regardless of their credit situation. Whether you have bad credit or no credit, we encourage shoppers from all walks of life to stop and take a look at our inventory! Financing can be finalized the same day to get you driving sooner.
Take the hassle out of your next vehicle purchase. Dealerships are the old way to buy. We’d love for you to visit the New Jersey State Auto Auction, which is the easy way to buy your next car!
Our how-to guide to selling a collector car this week at the Arizona auctions
(Editor’s note: This is the second in a two-part series to buying and selling a vehicle at a collector car auction. The first segment covered buying.)
So, you have been watching the various auctions on TV for a few years and might have even attended an auction or two and have decided to sell a collector car at an auction. Is this the right decision and, if so, how should you go about it?
To start, selling a collector car at auction can have a couple of advantages over selling person-to-person, either online or through your network of friends in the collector car hobby.
- Auctions can often do a better job of marketing your car than you can yourself. These companies have marketing and PR teams that promote the sale and even your specific car via their network of advertising and partnerships. This can lead to record sale prices.
- Through their marketing, auction companies bring hundreds or even thousands of qualified buyers to their events, giving your car an audience that it is not likely to get when sold privately.
- Auction companies employ car specialists at their events to assist prospective buyers in the purchase of your car.
These are all important points of difference from person-to-person selling or even selling a classic car through a consignment dealer. But remember there are costs associated with the selling of a car at auction:
- The cost to transport the car to an auction.
- Listing fees that many auctions charge (see the auction house website for specifics).
- The possibility that if your car does not sell, you will have to pay to get the car shipped back home.
- There is a varying percentage that the auction company takes from the seller. This is a percentage of the hammer price and is not inclusive of the buyer’s percentage. This can add up and can make your car go from a strong sale to a weak result.
What should you do to help your car sell for a good price?
Decide if your car is the right car to sell not only at auction, but at a specific auction. As a general rule, and for the big major sales, if the car is worth less than $20,000, you should make sure that an auction is your best selling option. There are exceptions, for example, such as a local auction with little or no transportation costs.
You also need to decide which auction is the best for your vehicle. For example, I would not take a muscle car to an auction that specializes in European sports cars and full classics. By the same token, I would not sell a No. 1 condition Austin Healey 3000 at an auction that specializes in muscle cars. Do the research on each auction company and its locations and decide which company and venue best fit your car.
Also, carefully review the fees charged by each company to sell your car to help you pick the best company for your vehicle.
Now that you have made those decisions, you’re down to the nitty gritty of what you need to do to sell your car well:
- Be sure your car is truly ready to be sold at auction. A collector car auction is as much a show as it is a sale. Details matter. Be sure that the car looks great, with all cosmetic issues dealt with and done properly. In addition to the cosmetic issues, be sure that all mechanical and electrical systems work as they should. Do not forget to be sure that your car has decent and correct tires. In other words, do not put Brand X tires on your Ferrari; this tells sellers you are a cheapskate and they then start looking for what else was done on a low budget.
- Gather any and all service records, receipts, and other documentation for the car and create a pair of binders that cover the history of the car. Also have a pre-purchase inspection that includes an engine compression check to include in the folders. All of this communicates to buyers that you are the kind of fastidious owner that they want to buy from. Leave one with the auction company and keep the other one for your use at the sale.
- Have professional pictures taken of the car. When photographing the car, include everything such as the wheels, engine compartment, interior from both sides, and the rear of the car and headliner. Also put the car on a lift and fully photograph the underside. Finally, get pictures of the owner’s manual, service and history documentation and of the toolkit and any other accessories you have.
- When the description is written, provide the auction company with every detail about the car, citing the factory-specific names for the paint and interior colors (Polar Silver paint with Parchment leather), the options on your car including the factory option codes, and all the ownership history you can gather for the cars life.
- If the auction company does not have a dedicated detail person on site, employ one of your own to be sure that the car always looks great. You can also do this yourself at the auction should you wish. This is also a message to buyers that you care about your car.
- Be on hand during the auction preview days to answer any questions about the car. Do not sit in a chair behind the car all day, just be available and be sure that the auction company specialists have your cell phone number and let them know that you are happy to answer any questions in person from prospective buyers.
- Do not bring show-car style information boards to place next to the car. These look cheesy and make the car look like it is at a local car show. They also tend to block a complete view of the car. Instead, use your second binder (remember, you made two) that documents the car and show it to prospective buyers on site.
- Unless you are a celebrity, do not insist on driving the car across the block, but be sure that the auction company drivers know how to properly operate the car. Also provide them with a set of clear instructions on how the car likes to be started and driven.
- Be in the room when the car is selling. This helps if the auction company has a buyer who is bidding under your reserve so you can have a conversation on how to proceed.
A note about reserve prices: Cars can be sold at no reserve, meaning the high bidder gets the car regardless of what the bid may be, or you and the auction house can set a reserve figure which is kept secret from bidders and is the minimum the auctioneer needs to hear before hammering your car sold. You can lower the reserve during the bidding if you want.
All of this might seem obvious to you, but you would be surprised at how often sellers neglect such things. Follow these rules and your car is likely to sell at auction for a good price.
I have sold both well and poorly at auction, and when I sold well, it was by following all of these steps, and when I sold poorly, it was because I did not. Learn from my mistakes and you could sell your car for a strong price, maybe even a world record.