Sourcing Auction Vehicles: What You See Is What You Get

Sourcing vehicles from auctions has become a popular way to purchase cars at a lower price. If you’re a car enthusiast looking for a restoration project or a dealer hunting for inventory, buying at auction can be a win-win. However, it’s important to know that the saying “What you see is what you get” applies strongly to these types of purchases. In other words, the condition and details you see in the online auto auction listing or during the preview are what you should expect.

In this article, we’ll explore everything you need to know when sourcing auction vehicles, from how auctions work to tips on getting the best deals. By the end, you’ll understand how to make informed decisions and avoid costly mistakes.

How Vehicle Auctions Work

Before jumping into the details, it’s important to understand how vehicle auctions operate. Auctions can take place in person, online, or a mix of both. Vehicles listed at auction are typically sold as-is, which means no warranties or guarantees. The seller provides a description and often an inspection report, but there are no returns. Once the auction is over and you win the bid, the vehicle is yours—no questions asked.

Each auction can have its own set of rules and conditions, so it’s crucial to do your research on the specific auction you’re attending. Some auctions require you to register beforehand, while others may have a buyer’s premium, which is an extra percentage you pay on top of your winning bid.

The Importance of Vehicle Inspection

In any auction, the key phrase is “What you see is what you get.” This is why vehicle inspection is so crucial before placing a bid. Auctions often allow potential buyers to inspect the vehicles ahead of time. It’s your chance to see the car in person, examine its condition, and look for any issues that may not have been mentioned in the auction description.

The level of inspection varies depending on the auction type. In physical auctions, you may have the opportunity to open the hood, check the interior, and even take a closer look at the engine. In online auctions, sellers may provide detailed photos and videos. However, photos can sometimes be misleading. It’s easy to take a good photo that hides a cracked fender or an underperforming engine, so don’t rely on images alone.

If you’re not a car expert, it’s wise to bring along someone who is or hire a mechanic to assess the vehicle. They can help you spot red flags like frame damage, rust, or engine issues. Remember, these are all issues you’ll be responsible for once you win the auction.

What You See Is What You Get: Condition Matters

Auction vehicles are typically sold as-is, meaning the condition you see during the inspection is what you’ll have once the deal is done. These cars may have cosmetic flaws, mechanical issues, or hidden damage that may not be immediately apparent.

When assessing a vehicle’s condition, pay close attention to:

• Exterior: Check for signs of body damage, rust, and previous paint jobs that might hide dents or scratches. Don’t be fooled by a shiny exterior—it’s the underlying issues that matter.
• Interior: Look for wear and tear on seats, upholstery, and the dashboard. Also, check the electronics and any features like air conditioning or navigation systems.
• Engine: Start the engine and listen for any unusual noises. Check fluid levels, belts, and hoses for wear. If the car has been sitting for a long time, there may be issues with the engine or battery.
• Tires and Suspension: Tires should have enough tread for safe driving, and the suspension should feel stable. A bumpy ride or uneven tire wear could signal underlying issues.
• Underneath the Vehicle: Look for signs of leaks or rust underneath the car. Frame rust can be particularly troublesome, and repairs can be costly.

It’s important to manage your expectations. Even if a vehicle looks good in the inspection, it might still require work to get it running smoothly. The more detailed your inspection, the better you can assess the true condition of the car.

Auction Descriptions and Reports

Auction vehicles typically come with a description and sometimes an inspection report. These documents give you an overview of the car’s condition, its history, and any notable issues. However, keep in mind that these reports are not always 100% accurate. They are based on what the seller knows or what was observed during the vehicle’s inspection, but they might miss hidden problems.

The description often includes the car’s make, model, year, mileage, and any known damage or repairs. However, auction houses can sometimes misclassify a car or overlook minor issues. For example, a description may say “minor rust,” but in reality, the rust could be extensive and require significant repairs.

If you’re unsure about the accuracy of the description, take extra care during the inspection. If an auction provides a more detailed inspection report, look for anything that seems off or contradictory. Don’t hesitate to ask the auction house for clarification on any points in the report.

Bidding Strategy: Don’t Get Caught in the Moment

One of the most exciting aspects of buying at auction is the bidding process. It can be easy to get swept up in the excitement and bid higher than intended. However, remember – if you’ve already inspected the vehicle and decided it’s worth your bid, don’t overpay just for the thrill of winning.

Here are some tips to help you bid strategically:

1. Set a Budget: Know your maximum price and stick to it. Factor in potential repairs and maintenance costs before you bid.
2. Stay Calm: Auctions can get competitive, but don’t let your emotions cloud your judgment. Stick to your plan and only bid if you’re comfortable with the vehicle’s condition.
3. Know Your Limits: If a car goes above your budget or you notice any red flags during the bidding process, walk away. There will always be other opportunities.

Sometimes, it’s better to wait for the right deal than to rush into something you’ll regret later.

Post-Auction: What Happens After You Win?

Once you’ve won the bid, you’ll need to handle the logistics of paying for and picking up your vehicle. Most auctions require payment within a certain time frame, often the same day or within 24 to 48 hours. Be prepared to make payment immediately or as required by the auction terms.

Once paid, you’ll need to arrange transportation for the vehicle, especially if it’s not drivable. Some auctions offer delivery options, while others may require you to hire a towing company to transport the car.

Keep in mind that if you’re purchasing a car for resale or for restoration, it’s likely you’ll need to perform repairs. If the car has mechanical issues, budget for those repairs as soon as possible to prevent additional damage or further issues.

Pros and Cons of Auction Vehicles

Before you jump into an auction, it’s good to weigh the pros and cons of purchasing a vehicle this way.

Pros:

• Lower Cost: Auction vehicles can be cheaper than buying from a dealership or private seller.
• Wide Selection: Auctions offer a diverse range of vehicles, from project cars to nearly-new models.
• Excitement: The thrill of bidding can make the process enjoyable for car enthusiasts.

Cons:

• No Returns: Once you win the bid, the vehicle is yours, regardless of any hidden issues.
• Risk of Overpaying: If you’re not careful, you could end up bidding more than the car is worth.
• Hidden Problems: Even with inspections, there may be underlying issues that only surface after purchase.

Final Thoughts

Sourcing vehicles from auctions can be a great way to get your hands on a car at a lower price, but it requires careful inspection and smart decision-making. Take your time to inspect each vehicle thoroughly and review all available information. Set a clear budget, avoid getting carried away in the bidding process, and understand that auction vehicles are sold as-is, with no warranties or guarantees. With the right knowledge and approach, you can score great deals and find your perfect car at auction—just make sure you do your homework first.