Buying a Car at Auction

The latest Glass’s Guide podcast is live. In this edition, Tim and I talk about buying a car at auction: what to do and what not to do.

Auction buying is an interesting topic. Our podcast recording went from a planned ten minute quick starter course to almost half an hour of good discussion (after editing) with many things still uncovered – they’ll have to wait until next time! But the main points are all there, so some people will find it interesting.

People often ask me what’s the most important thing about buying at auction. I think the main point is to be relaxed. You cannot count on making a good decision if you are stressed, and a bad decision at auction can be an expensive one. Even if we are only talking about a few hundred quid, the time and energy involved can make it an emotional exercise, so be sure to cut down on as much uncertainty as possible before bidding.

Be clear on your motives for being there. If your main reason for buying at auction is to save money, you should also consider buying a car privately. Private sellers offer a test drive facility which you do not get at auction. They are also usually willing to haggle and sometimes throw in a few extras. Another important aspect is you can assess how they’ve maintained the car and make a decent decision on whether they are ‘your kind of seller’. Private sale prices can often be on a par or even lower than prices at a strong auction. If you are a buyer, don’t rule out the Private Sale approach, especially if you are looking for a particular car at a particular age and mileage; auction does not always allow one to be as selective.

If you are dead set on auction, then try to enjoy it. A good car auction is about as exciting and dynamic an environment as you could wish for when buying. Most sales are over in under thirty seconds, so you’ve got to be awake to ensure you do not come a cropper. My top tips for buying at auction might look something like this:

1. Get there early, grab a cup of tea and walk the lines with an objective eye. If you see something you like the look of, have a quick walk around it to look for obvious damage, put a tick in the auction catalogue next to it and come back to see it later. Do not spend 20 minutes looking at the first appealing car you see and run out of time to see the rest.
2. Do not go on your own! Always bring a second opinion. The more opposite it is to your the better. Do not bring your best mate and fellow car junkie who is going to encourage you to buy a yellow Porsche Boxster when you actually went looking for a Zafira diesel in a dark metallic colour.
3. Don’t be afraid to come home in your own car. We all get a little excited at the thought of having something new to drive, and can sometimes justify buying at auction with the lines “otherwise the trip will have been a waste of time”. Keeping your cash safe for the next sale is never a waste of time. Do not be afraid to walk out of there if the sale is looking dear, or your only potentials went through quite early and sold to other bidders.
4. Set a budget and stick to it! Go to the cash desk before the auction starts, get them to swipe your debit card as a potential bidder and think about how much more you want to be handing over. Remember there will be a buyers’ premium to ad to your final bid, so factor that in. When the bidding gets to your preset ceiling then stop – let someone else have it. Other bids are not a personal attack on you. When the sale price gets to your limit, STOP BIDDING. There will be another car.
5. Don’t buy at your first-ever auction. Visit a few sales first and get a feel for the pace and patterns that the sale follows. Look at who is bidding, who buys what and who bids on the stuff you like. Look at when there are low points – when the big boys head off for a bacon sandwich for example – or points in the process where bids are low: at the start or at the finish maybe. Most sales take a while to get going or begin to thin out towards the end and you can sometimes grab bargains there – be careful though! There are always low points in a sale, and if you are in that zone alone then you might bag a different bargain within budget.

There are lots of other tips, but most are simple common sense. Have a good look around your intended lots, check as much as you can before they come into the hall. Listen to the car running when the boys start it to bring it through and ask the auctioneer what you need to be comfy about raising your hand on it. Do not bid on anything you have not checked out first.

Tagged as: buying, glass, writing