Insider’s Guide on Online Car Auctions
Online car auctions are nothing new and have always been an option for buyers. But there’s been an increase in online car sales within the past year or so due to COVID-19. Here’s how they work.
Who can bid?
All online car auctions are open to licensed dealers. If you’re not a dealer, however, you can get one to bid on your behalf. Alternately, there are also online car auctions that are open to individuals, meaning that you could bid and purchase a car even though you aren’t a licensed dealer. Of course, there’s also the option of becoming a licensed car dealer, which may be a good option for you to consider if you regularly buy and sell vehicles and would like to get into that field.
The bidding process does take some finesse, so if you are doing the bidding yourself, be sure you do your research and determine what your budget is ahead of time.
Are online car auctions risky?
There’s always a bit of risk involved with purchasing a vehicle. You could see it, test drive it, check under the hood, and still get a bad apple. But don’t let the sight-unseen aspect discourage you from online car auctions. Buying a car through an online auction is no more risky than, say, buying a car via Craigslist or Facebook Marketplace. You can always use the VIN to look up the vehicle’s record and sites like Kelly Blue Book to determine fair market value. If you’re willing to do the research, you should be able to secure yourself a good deal!
What makes them so appealing to prospective buyers?
Buyers like online car auctions for several reasons:
- Contactless: These days, buyers especially like online car auctions because they give you the ability to bid on and purchase a car with minimal exposure to coronavirus germs.
- Convenient: Buyers can bid from the comfort of their own homes or even from work! They don’t have to spend hours of time browsing a dealership.
- Pressure-free: Online bidding means there’s no intimidating interaction with a car salesman. (Introverts, rejoice!)
- Plenty of options: Because there are online car auctions on a weekly and monthly basis, there are always vehicles available and deals to take advantage of.