If auctions are new to you be careful. Auctions can be tricky if you don't know what to expect. So do not be afraid when you get there and see all the expensive items around. You are not going to pay what you think.
Learning what to expect from auctions selling repossessed cars will really depend on a few things: where you are located, what you are trying to buy and what kind of auction you are buying from. There are two main types of auctions available. One is a live auction where you can go and view the items that are for sale. There are auctions that you can sign up for and place bids online.
Who Would Want To Attend Repossessed Car Auctions?
These auctions can be very popular especially these days as more people are trying to save money wherever possible. The news is getting out that these can be a great way to save a huge amount and get more car for less money. Cars that have been repossessed by banks or other lending institutions are normally quite new, usually within a few years of the current model year, but are sold at up to seventy percent less than you might pay if you were purchasing the car from a car lot. In fact, used car dealers often attend car auctions in order to replenish their inventory. They are attracted by the wide range of vehicles to choose from since they can maximize their profit by purchasing cars at a very low price.
Live Auctions
Attending auctions can be such fun. You have different kinds of live auctions and both are unique. One is live bid where you see what everyone is bidding or there is a sealed bid where you only bid once and highest bid wins.
Live bid auctions can be quite interesting to watch and be a part of. They are the traditional style of auction that most people are familiar with. An auctioneer calls out bid amounts for the various repossessed cars and people indicate that they are willing to pay that amount for the item in question. The highest bidder will win the item, but you know what the bids are.
Auctions where you put your bid in an envelope are known as closed or sealed bid. These are not as exciting because you're waiting for the bidding to end and hoping your bid is high enough. Based on the fact you don't know what the bids are.
Internet Auctions
Internet auctions are usually very straightforward. They can be either a public or a closed bidding system as well except that you are placing bids over the Internet. As with live auctions, the highest bid wins the item. Internet auctions can be less exciting since you are not around other bidders and are completing all of the financial transactions from the comfort of your home.
Either auction you choose, the end result is the same. Everyone wants to get a great deal. An auction is the best way to buy a repossessed car.