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Buying a Car from an Auction

There are several ways to buy a used car from an auction. But the thought of competing with other buyers might be intimidating unless you understand how auctioneering works.

So, why do cars end up at a public sale anyway, how much cheaper are cars sold at auctions in the UK, and what happens during the bidding process?

Why Cars Get Sold at UK Vehicle Auctions

The process of selling a car to the highest bidder can take place at any of these different types of auction houses:

There are several well-known and established classic car auctions in the United Kingdom. Most of them sell high value vehicles on behalf of private individuals.

Whereas, a public car auction will be trying to get the highest bid offered for vehicles that have been owned and driven by average motorists.

Here's the thing:

Often, the auctioned cars are either ex-rentals or a fleet of vehicles (e.g. used as company cars by employees of a large company).

It's also common to see part-exchange vehicles sent to auction by main dealers. They usually send older vehicles with high mileage for bids instead of trying to sell them as "second hand" on their own car lot.

But, if you're planning on buying a car from auction, be mindful that it could have been repossessed or classed as an insurance write-off.

Of course, disposed written off vehicles are likely to have some visible damage. Even so, it may have already had some bodywork and mechanical repairs done prior to "going under the hammer".

Pro Tip: In the United Kingdom it is not illegal to sell repossessions or write-offs. But, as a potential bidder, it's better to know why it was written off in the first place. Furthermore, you would need to disclose this information to a future buyer if you plan on reselling it.

Is it Cheaper to Buy a Car from Auction?

Recent figures released by the automotive industry suggest more than 12,000 vehicles are sold every week at car auctions in the United Kingdom.

Furthermore, private buyers who are hoping to drive away with a bargain account for about 10% of them. So, are public auctions really the best and cheapest option for buying a used car?

Yes, cutting out the middleman means you can save money by buying a car from auction. But, you should always:

Pro Tip: Because auctioned vehicles are often tagged as being "sold as seen", discovering hidden problems after the purchase could mean that you didn't actually get a cheaper car.

Auction Grading for Used Cars

In most cases, you will not be allowed to carry out a test drive before the auction starts. Nonetheless, you should look for obvious signs of damage or colour mismatch by conducting a thorough visual inspection.

How Do Car Auctions Work?

One of the best reasons to buy from an auction is the wide choice of vehicles available. Plus, they will be displayed all together in one place so you should be able to reduce your travel cost and time.

The bidding and buying process is fast and there will be no "selling pressure" put upon you by the auctioneers. It's fair to say buying from an auction is quite exciting and it's a good opportunity to meet like-minded enthusiasts.

And the pitfalls?

Besides not having the option to test drive the vehicles that you want to buy, you'll also lose some legal protection afforded to you when buying from one of the car manufacturers in the UK.

In other words, auctioned cars are sold on the basis of being "as seen". As a rule, you will lose the standard car warranty (excluding those in a manufacturer's warranty period).

Over and above that, the auction will not give you a "cooling off period". So, if your bid is the highest accepted by the auctioneer, it's your car!

Car Auction Houses in the United Kingdom

Pro Tip: In general, anybody can buy a car at auction. But, you need to be a trade buyer to gain access to some of the prominent auction houses. Some also allow prospective buyers to attend online by watching a live stream of the proceedings.

Bidding Strategies at Car Auctions

You'll need to register and pay a deposit (e.g. £200 to £500) and get a bidder's number to participate. Once the auction starts, each "lot" (items being sold) enters the auction hall and the bidding begins.

So, how to bid smart?

The winning bid usually gets up to forty eight (48) hours to make a full payment. Following that, you can collect your car or arrange for a suitable delivery.

In Summary

For many, it is definitely worth buying a car from auction to try and snap up a bargain. There are cheap cars for sale with lower prices than those asked by private sellers and those listed by authorised dealers.

As a consequence, anyone who is keen on buying rare or historic collectable cars with favourable price tags could benefit from attending one of the classic car auctions.

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Editor's Bio: We're self-confessed car fanatics who enjoy writing car blogs about the automotive industry - especially here in the United Kingdom.