Buying and selling at auction Leave a comment
Whether you’ve decided to part ways with your current classic, or you’re in a position to add to your garage, buying or selling a car at auction can be an excellent way to get a great deal, but it can also be daunting if you don’t know what to expect. Here are some top tips from Motaclan to help you navigate the auction process:
Buying a Car at Auction
Do your research. Before the auction, research the type of car you’re interested in to get an idea of its market value. Look for similar cars online or in classified ads and check their prices. This will help you to know what a good deal is and what to avoid.
Set a budget. Decide on a maximum bid amount and stick to it. It’s easy to get caught up in the excitement of bidding, so be sure to have a clear idea of how much you can afford to spend. Remember to check the Ts&Cs and work out the total amount so you don’t get a shock when the hammer goes down – sale prices are often exclusive of a buyer’s premium and VAT.
Inspect the car. Before the auction, inspect the car thoroughly to check for any damage or signs of wear and tear. Viewing days are just one of the great things about a live auction as you get the opportunity to inspect the vehicles and any associated history files prior to bidding. The vehicles are often available several days in advance of auction day and there will be someone on hand to answer any questions you might have.
Understand the auction process. Make sure you understand how the auction works and what the rules are. Most auctions will have a set of terms and conditions that you need to read and agree to before bidding. At a live auction you’ll be bidding in person but quite often you’ll be able to bid by phone, online or leave a commission bid if you are unavailable on the day. A commission bid is the maximum amount you are willing to bid up to and the auction house will execute your bid on your behalf. Telephone bidding will still allow you to bid live during the auction and on the day of the sale, a representative from the auction house will contact you ahead of your lot going under the hammer and guide you through the process. For each method you will usually need to register ahead of the auction and provide proof of identification.
Be prepared to pay. If you’re successful in your bid, be prepared to pay for the car immediately. You’ll usually have to pay a deposit and the rest of the balance within a set time period, which is usually 24-48 hours.
Selling a Car at Auction
Choose the right auction. There are many different types of car auctions, so it’s important to choose the right one for your car. Look for an auction that specialises in your type of car, such as classic sports cars or luxury vehicles and has a team that’s committed to making selling your classic car as easy and straight-forward as possible.
Set a reserve price. A reserve price is the minimum amount you’re willing to accept for your car. Set this price before the auction, so you don’t end up selling your car for less than you want.
Be realistic. Don’t expect to get top dollar for your car at auction. Be realistic about the value of your car and set a reserve price that reflects this. Auction houses often offer a no obligation appraisal of your vehicle to help you get the best price without losing interest from potential buyers if you set the reserve too high. They have probably sold similar vehicles and can help you understand industry trends to help you to establish the best guide price.
Be prepared to negotiate. If your car doesn’t sell at the reserve price, be prepared to negotiate with potential buyers. They may be willing to pay more than their initial bid if you’re open to negotiation.
Prepare your car. Make sure your car is clean and presentable before the auction. If there are any repairs or maintenance that need to be done, take care of them before the auction. The auction house might offer to take professional photos of your vehicle to help market it ahead of the event and this is worthwhile if they will be advertising it on your behalf.
In conclusion, buying or selling a car at auction can be a great way to get a good deal, but it’s important to do your research and understand the process before you get started. With our top tips, you can navigate the auction process with confidence and come away with a great deal.
If your vehicle is undergoing restoration or repairs ahead of selling, or you’ve just purchased a classic which needs a little TLC then get in touch with the experts here at Motaclan who can advise you on the most suitable parts and maintenance.