Flipping Used Cars: What To Expect At The Auto Auction?
Flipping Used Cars: What To Expect At The Auto Auction
?Flipping used cars is a great way to get away from your dead end day job. The more number of cars you buy, the more focus you need to put in to your flipping job. Identifying cars with wholesale price for the retail purchase leaves you with a good start. Auto auctions are the right place to start.
Why Source Used Car From Auctions?
Off-lease cars, off-rental cars, company cars, fleet cars, repossessed cars, trade in cars and salvage cars find their way in to auctions. The main purpose of auctions is to make a quick sale of the cars at a price to dealers who can further sell it off for a decent profit in the retail market. You always get something flip worthy at an auction.
There Are Different Types of Auto Auctions
Public auto auctions
Police and Government auto auctions
Seized auto auctions
Salvage and insurance auto auctions
Wholesale auto auctions
Some auctions are open only to dealers and you might have to procure a dealer's license to source cars from there.
What To Expect At The Auto Auction?
You cannot simply walk in to the auction and say, "Good cars here today! I'm going to bid on this car and I'm going to buy the car for the price I wave my hand." There needs to be an order and there is.
You have to register to bid for an auction
The auctioneers need to be sure that you have enough funds to back your bid
You need to sign a contract to bid in the auction.
You need to have a bidder's pass or at least a complementary pass to bid in closed auctions.
You need to have a driver's license if you should drive the car away after winning the bid
Registering for the Auction
You should present yourselves at the bidding office, register your details before you bid. Before actually registering, the desk person would want to know about how you are going to pay for the purchase. They need to ensure that you have bucks to back your bid.
It is a problem if you bid without registering. Almost every auction process requires you to be registered.
Most of the auctions permit you to pay with cash, personal checks, bank letter of credit, credit cards and some exclusive methods permitted by the auctioneer. Once they verify that you are pay worthy, they require a few supporting documents like your driver's license, social security number and other paper works.
You will pay a membership bill fee and a buy fee that will be a certain percentage and it differs between auctioneers. They provide you with a form to fill in the required details and the data updated in the computer. They update your picture in the computer.
The sooner the registration is complete, they print out a bidder confirmation slip. They also print out a bidder's pass for you. They let the ring men know of your registration to let them know that they can consider your bid.
Proceeding To Bid
After you get your bidding pass, you can inspect the cars put up for the sale, read the description sheets on the cars represented by the sellers, test them and decide on the buy. This is the first step toflipping used cars.