ONLINE VEHICLE AUCTIONS
First, you will find that you can often purchase a vehicle for much less than what the dealership will charge you. In many instances, you can find a vehicle for less money than what owners in your local area might be asking.
Determining the actual worth of a vehicle in an online auction is very important. Without the right pricing information and valuation guide, you can pay far more for a vehicle than it is actually worth. Here, you will find some valuable resources to help ensure that you always know what that prospective vehicle is worth.
- Kelley Blue Book (KBB.com) – Kelley Blue Book is the single most trusted source for accurate pricing and valuation tools. Now that the Blue Book is online, you can gain access to an incredible wealth of information that will help ensure any vehicle is within an acceptable price range.
- NADAGuides.com – The National Automobile Dealers Association offers valuable guides that can help you determine the correct condition of a vehicle, as well as the proper pricing. In addition, the site offers reviews, specifications and other data to help you make the best possible buying decision.
- CARFAX.com – CARFAX has become a synonym with information about a vehicle. Not only will a CARFAX report help you determine the worth of a vehicle, but it can also tell you if a particular vehicle has been in an auto accident, details about problems with the title and much more. If you use no other tool, CARFAX is a necessity.
- Edmunds.com – Mentioned in the previous section as well, Edmunds.com is a valuable website with a ton of information that can help you find the right vehicle at the right price. This website is ideal for those seeking in-depth information about a vehicle prior to bidding on an auction.
Finding the right auto reviews is important. These contain vital information about the vehicle in question, ranging from handling characteristics to available power plants and more. In addition, you will find that many of these websites offer information about recalls and other tools that help ensure you are not taken for a ride by an unscrupulous seller.
- CarAndDriver.com – Car and Driver has been around for a very long time. Long a presence in the magazine world, Car and Driver has now moved online, as well. Their website offers in-depth reviews for any number of current models, as well as reviews of many older models.
- MotorTrend.com – Much like Car and Driver, Motor Trend has a well-established presence in the world, particularly in print magazines. However, Motor Trend’s website offers valuable reviews and insightful tips for car buyers, including reviews and information about vintage model vehicles.
- Consumer Guide Auto – Found at ConsumerGuideAuto.HowStuffWorks.com, this website offers some of the most in-depth reviews of cars, trucks and vans available. This website also offers pricing information, safety ratings and other valuable data for your consideration.
- ConsumerReports.org – Consumer Reports, one of the top authorities on anything purchased by consumers, has a wealth of information about various vehicles available on the market. Consumer Reports also offers in-depth information about safety concerns, vehicle performance and more.
- Edmunds.com – Edmunds.com offers car reviews, as well as pricing guides for consumers to use. With ratings, valuation functions and buying advice, this is an excellent resource for any bidder seeking to ensure that an online auto auction is on the up and up.
- Cars.com – This website offers consumers access to a wealth of research material, including auto reviews, information about financing, buying advice and more. In addition, while the site does not have an auction function, consumers can buy and sell cars here, as well.
Determining just what a particular vehicle on an auction site is worth can be difficult. However, with the right resources, you can determine if a car, truck or van is right for your needs, as well as determining if the price is right. In this chapter, you will find a wide range of resources to help you in your buying, ranging from vehicle review sites to valuation options.
Losing out on an auction can be a frustrating thing. However, it does not have to spell the end of your search. You will find that numerous online sites have a wide range of tools that can help you find vehicles similar to the one in question.
Price
For many people, price range is more important than make or model, though those two factors are certainly involved in the purchase decision. However, eBay Motors and other auction sites give you the ability to sort auction listings by price. This can help you find a similar vehicle (and a similar bid range) to the one you had originally wanted.
Brand Name
The maker of a particular car can be of paramount importance, even trumping price for many people. Brand loyalty is the cornerstone of the success modern automakers have encountered (even considering the recent economic woes). Therefore, you will find that you can easily search by brand, as well as by price when you need to find a vehicle similar to the one in the newly ended auction.
Model
Quite a few people prefer a specific model over other options. Online auction sites offer the ability to search and rank vehicles based on their model, as well as by brand name and price. In addition, as many automakers offer models that are comparable to one another, you might be able to search similar models and find an option that you like.
A number of options exists to help you find another auction that will suit your needs. Whether you choose to search by make, model, price or some other criteria, losing an auction does not necessarily spell defeat for your online efforts.
Online auctions are great fun, and can result in tremendous deals on automobiles. However, they can also be quite frustrating. The chances of you NOT winning an auction are generally higher than those of you placing a successful high bid. This is particularly true for popular vehicles, as well as those that have a very low current bid (and no unmet reserve).
How are you supposed to stand a chance when there are hundreds of other people interested in the same vehicle? In this section, you will learn some valuable strategies to help maximize your chances of winning.
Bid Sniping
Last minute bidding, or bid sniping, is perhaps the best strategy for winning any type of auction. In addition, the more people that wait until the last minute, the lower the final price will be. Bid sniping is a method used by many different bidders, much to the chagrin of sellers. Why is this?
Bid sniping, as mentioned, results in lower final prices than would be possible if everyone openly competed throughout the duration of the auction. By waiting until the last minute, bidders make certain that prices remain as low as possible, as there are no competing bids to drive them higher.
How do you practice effective bid sniping, though? Actually, it’s not as hard as it seems to be. The first key is to place the auto on your “watched” items list (for eBay Motors). If you are using another auction site, they may have similar tools for use, though live auctions will not have these benefits.
Once the automobile is on your watched items list, you can simply check the price periodically throughout the duration of the auction. When it comes down to crunch time, though, you will need to be in front of your computer.
Direct your browser to the vehicle’s auction page and wait for the final few minutes of the auction before taking any further action. You will need to refresh the page quite frequently, to ensure that you have accurate information, though.
Once the last minute or so rolls around, place your bid. Once the bid is placed, refresh the screen. If you are outbid, simply place another bid and then refresh your screen. If you are successful, you will be rewarded with the vehicle that you want, at a price much lower than you might have thought.
Auctions Ending Soon
Most online auction sites give you a means to sort your search results. The key element in this winning strategy is to order your search results by auctions ending soonest. Why should you worry about this? Why not find an auction with a lengthy amount of time left on it?
While it is true that bidding on auctions that are ending quite soon can be a risky proposition, it can also be quite rewarding. Make sure that you have enough time left before the auction ends to read the entire auction description, the payment terms and any other pertinent information about the vehicle, though. In addition, you should not expect to have time to ask the seller any questions.
When you find an auction ending soon that you want to bid on, you can either place that vehicle on your watched items list, or you can place a bid (depending on the amount of time left for the auction). If you choose to place a bid, make certain that there is very, very little time left in the auction so that you stand the best chance of placing the winning bid.
If you add the item to your watched items list, then you can follow the sniping strategy outlined above. Both methods can help you win an auction quite easily.
Have Several Options
Tying yourself down to just one auction is not the best way to win the vehicle that you want. While you certainly might prefer one vehicle to another, finding several vehicles that appeal to you and placing them on your watch list can help you win.
In fact, in many cases, you will find several different vehicles of the same year, make and model for sale at the same time through auction sites. Add these to your list and watch them as their auctions progress. The more auctions you watch, the greater your chances of winning one of them.
You can also implement the sniping strategy outlined earlier to increase your chances of winning even further. However, having multiple vehicles that appeal to you on your list at one time will give you the ability to win a vehicle that you like.
However, you should never place a bid on an auction that you are not prepared to pay. Therefore, if you add several different vehicles to your list, you should make certain that you bid only on those you will be able to pay for.
This is simpler than it sounds, as no two auto auctions are likely to end at the same time. Start your bidding with the auction ending soonest and simply move down the list chronologically.
Buy It Now Can Work
While online auction sites excel in letting buyers compete with each other for the automobile in question, some sellers opt to combine their auction with the ability to purchase the item immediately.
While you will certainly not get the lowest price possible through this method, it does ensure that you win the item you want. In addition, you will find that in many instances, these prices are lower than what you would pay on the open market.
Buy it now options can be excellent tools for your needs. However, before you decide that you want to buy the car outright, you should consider several alternatives. First, check the auction site to see if there are any similar vehicle makes and models on offer.
Next, check the auctions ending soonest to make certain that there is no chance you can get a better deal. Only after you have thoroughly investigated your other options should you choose a buy it now price. However, if there is only one of those vehicles, the price is very reasonable, or you simply don’t want to take your chances with other bidders, these options can be of use.
“Find Similar”
If you have ever bid on an auto auction and lost, along with the disappointment, you have probably been asked by eBay if you would like to view similar items. This can be an excellent option. It can give you access to auctions ending quite soon, as well as to newly listed automobiles that might appeal to you.
However, this is not always the best choice, as those items returned might not be as similar to the vehicle you missed out on as you might expect. It can pay to take a look, though; just do not pin your hopes of success on this method.
Paying for an auction is imperative. Technically, at least through eBay Motors, placing a bid is the same as signing a contract stating that if you win, you agree to pay the bid price. However, what methods are available to you to make that payment? Understanding these methods is very important.
PayPal
PayPal is one of the most widely accepted payment methods online. Almost every (but not all) seller accepts PayPal as a legitimate form of payment. Why is this beneficial? Say what you like about the PayPal system, but its convenience is certainly considerable.
In addition, you will find that using PayPal allows you to use other forms of payment. For instance, it’s quite likely that you have your PayPal account linked to your bank account. Therefore, if you have sufficient funds to purchase the car within your bank account, you can pay through PayPal and your transaction will be concluded almost instantly.
Of course, using PayPal also allows you to use credit cards to make your purchase. Currently, PayPal can be linked to a number of different credit cards, including Visa, MasterCard, American Express and Discover. This offers you a wider range of payment options when buying an automobile through an auction.
Personal Check
Personal checks are also convenient ways to pay for an auto auction. However, not all sellers accept personal checks. You will have to check the auction details to determine if the seller in question does accept this form of payment.
Personal checks also have another drawback. Generally, when you pay with a check, you will have to wait until the check clears the seller’s bank before you can pick up your vehicle. While certainly inconvenient, this process is in place to protect the seller from fraudulent buyers.
Therefore, paying by personal check might not be the best option possible for your needs. However, if you are fine with waiting until the check clears and you have enough money in your checking account, this can be a viable option.
Cashier’s Check
Many sellers do not accept personal checks, as noted above. However, they will accept cashier’s checks. These are checks guaranteed by the issuing bank. As such, they generally do not have the same problems found with personal checks.
With that said, you might encounter some sellers who do not accept this form of payment. This is largely due to the number of counterfeit cashier’s checks that have flooded the market in recent years.
Money Orders
Most sellers on eBay no longer accept money orders. You might luck out and find one that does, but do not count on this happening. This is because money orders have become simpler to counterfeit over the years and, much like cashier’s checks, are no longer considered viable options by many companies and individuals. For example, most insurance companies no longer accept money orders for this reason. Therefore, you should not expect a seller to accept this form of payment.
Loan Checks
If you do not have the immediate funds necessary to pay for that new purchase, you can get a loan from a bank or a credit union. In most instances, you will have already obtained funding before starting your search for that car, truck or van. Many sellers on eBay and other auction sites will accept loan checks as a viable form of payment for an auto auction.
Cash
Next to PayPal, cash is the most common and popular form of payment in online auto auctions. Paying in cash can be convenient, and can allow you to bypass the problems found with other payment methods, such as with personal checks or cashier’s checks. However, paying with cash can present some difficulties, as well.
Sending cash through the mail to a seller is most certainly not advised. This means that you will have to pay the seller in person. In cases where you intend to pick up the vehicle on your own, this is not a hardship. However, those who intend to have their vehicle shipped from the seller to their home will find this to be a bit inconvenient, to say the least.
Full Payment Requirements
Every auction has some form of requirement for full payment to be made. The seller is the one who sets this requirement. In most instances, you will find that full payment must be made within seven days of winning the auction. However, there are other terms, such as three days, that are used, as well.
You can find this information on the auction listing. Auctions on eBay Motors (in particular) are easily navigated. The tabbed navigation system will allow you to view the vehicle’s description, the history report (or request a history report), the shipping terms, the payment terms and other information quite easily.
Make certain that you understand and are able to comply with the payment terms prior to making a bid on any vehicle. If full payment is required within three days of the auction closing and you are unable to make that payment, serious problems can ensue.
A Note on Financing
There are instances where you will find financing options listed within the auction description. There are two primary cases for this. First, the auction is actually for a vehicle being sold by a dealership. This is becoming more and more common, as dealerships seek a way to boost flagging onsite sales.
If you choose to bid on an auction started by a dealership, be prepared to pay a bit more than you would through an auction by a private owner. Most dealerships have relatively high reserves, in order to ensure they receive a minimum amount of money for the vehicle.
The second case in which you will find financing available is through an owner-financing setup. These situations are extremely rare, as most sellers are not willing to take a chance that the buyer will actually live up to the terms of the agreement. Therefore, if you need financing, the best choice is to have a loan from a bank or credit union already approved before you start searching for a car.
A Note on Reserves
Reserves are basically a way for sellers to ensure that their car sells for a minimum amount of money. Reserve amounts can range from very minimal to reasonable and even to extremely high. The use of reserve pricing is a hotly contested practice in online auctions, with many buyers avoiding sellers that do this.
The problem with a reserve is that buyers are not aware of what the reserve amount actually is. The only notification that you will receive when you place a bid is that the reserve has not yet been met. This can quickly become frustrating for buyers hoping to find a great deal on a car auction.
Many sellers have moved away from using reserves and advertise “no reserve” in the auction listing. These auctions are often hotly contested, with buyers inciting bidding wars in an effort to get the best deal on the winning bid.
A Note on Money-Back Guarantees
One of the primary means of determining if you should bid on a particular vehicle or not is the presence of a money-back guarantee. It should be noted that not all sellers offer this.
If you do not see this information present in the auction description, query the seller to determine if they have any type of guarantee. Even a very short guarantee, such as a refund at the time of pickup if the vehicle is unsatisfactory, can be valuable.
Determining if a vehicle auction is the right choice for you can be difficult. You might find the perfect vehicle, with a very low current bid and only a short time left on the clock. It can be tempting to place your bid immediately, in the hopes of getting in the winning bid. However, you should take the time to look at the vehicle’s location.
What does the vehicle’s location have to do with anything? Obviously, if the vehicle is within a reasonable distance of your home and you have the means to transport it back with you, then any vehicle that meets your wants and needs can be considered viable. However, what happens if that vehicle is in another state? What do you do if it is on the other side of the country?
The vehicle’s location is one of the most important elements in determining whether or not you should bid on an auction. Very few sellers offer any type of shipping or delivery for automobiles.
In most cases, the buyer is responsible for picking up the vehicle or for having it shipped to their location. If you are unable to make a pickup, and you cannot afford to have the vehicle shipped through an auto transport company, then there is little point in bidding on that particular vehicle.
Shipping costs can be quite high with auto transport companies. In addition, not everyone is able to take time out of their life to drive thousands of miles to pick up a vehicle. For these people, it is important to look for a vehicle within a reasonable distance of your home.
You will need to factor the cost of delivery or pickup into your total purchase amount, as well. For instance, if you choose to ship that vehicle to your home, you can expect to take on hundreds of dollars to the total price you will ultimately pay.
The auto auction process, itself, can be a bit confusing. How do you ensure you stand the best chance of winning that auction? What elements should determine whether or not you should bid on a particular vehicle? What strategies are available to help you win? In this chapter, you will explore the answers to these questions, as well as a host of other elements related to the actual auto auction.
If you have been the victim of auto auction fraud, filing a complaint with the auction site is an obvious step. However, you can also file a complaint if you suspect that a seller is fraudulent. This can help keep other people from falling victim to a scam, and can help make the online auction world a safer place for everyone.
Of course, you should be as certain as possible that the seller is a con artist or that the listing is fraudulent prior to making any complaints. Use the tips outlined in the preceding chapters and you should be able to determine this relatively quickly.
Several auction sites, including eBay Motors, recommends using an escrow service to protect your transaction. In essence, the situation works like this: You contact the escrow service and setup an account.
In addition to the money for the vehicle, you will also pay a fee to the escrow company. Once the seller delivers the car (or it is shipped by you), the escrow company sends the payment to the seller. In a perfect world, this is an ideal solution.
However, there are problems with this method. First, the incidence of escrow fraud has increased dramatically in the past few years. While legitimate escrow companies do exist and do offer important protection, it can be quite simple to fall for a scam here.
With that being said, a legitimate escrow company offers you the best protection possible – if the car is not delivered, the money is never sent, but refunded to you, instead.
How do you tell if an escrow company is on the up and up? The first step should be to check with the Better Business Bureau. This will tell you if the company is the subject of numerous complaints. However, this is not a foolproof option either. To avoid escrow scams, you will need to do a bit of research on your own.
- Check the company’s website. Poor grammar and incorrectly worded passages can be a giveaway that the site is not legitimate.
- Determine if the site is copied from a legitimate escrow site, such as Escrow.com.
- Read the Terms and Conditions page very closely – if the site has been copied, many con artists fail to change the name of the company as listed in the terms and conditions section.
- Never use an escrow company suggested by the seller. Insist on using a company of your own choosing.
If you follow these steps and find a legitimate escrow company, you can enjoy tremendous protection for your purchase. However, if you do not, then there is often little that can be done to recoup your loss.