Archive for February, 2006

In case you were wondering why you shouldn’t buy a new car from a dealership here’s why. If you were to go out right now and buy a new car from a dealer, you’ll be paying full price less the additional extras the salesman throws in to get you to buy it.

After the first two years of the new car’s life, you’ll automatically loose up to 40% of the value of the car assuming you bought it brand new. And on top of that if your new car was five years old it’ll loose up to 65% of its original price. So the logical thing to do is to buy a car between 3 and 5 years old. So you don’t loose half the value because it’s already halved. So my advice to you is to buy a used car instead of a new car.

So in theory if you bought a 4 year old car it’ll already have lots around 50% of its original value. Thus in 2 years when you sell it you’ll theoretically loose about 15% of the value you paid for less all the running expenses. There it is, one of the secrets in saving money when buying a car.

Now here’s another secret to saving money when buying a car. Have you ever heard of a car auction? Or an online car auction? How it works is really simple. Usually cars on auctions, be it reposed cars, ex government cars, or dealerships getting rid of old stock, you really can’t go wrong when you buy a car from an auction.

When you buy from a normal dealership you have to pay the premium price when you buy at auctions you’re paying wholesale rates. One of the best ways to save money is to head to a local car auction site or you can search online for an online car auction website.

You’ll be presented with all the necessary guarantees such as misrepresentation, meaning if you buy a car online and it gets shipped to you, you inspect it and it’s not the same as advertised, you’ll be entitled to a refund. Same goes for local car auctions. You can test drive the car before you settle to buy it, but only after you’ve won the bid.

So there you have it, the two secrets to saving money on cars. Make sure you do you research before buying any car online and offline by inspecting it carefully. Good luck and I hope you save lots of money!

So what’s the difference between an online car auction and an offline car auction?

Traditional car auctions are actually more time consuming than online car auctions. You have to actually be at the auctions site to place a bid. Therefore you should live locally or you should travel there.

One of the major benefits of buying at an actual car auction is that you get to inspect the car physically before you place you bids and you get to test drive it once you’ve bought it to ensure that the car is not a dud.

However with online car auctions this is not a real issue. The only different is that you inspect the car when it arrives at your destination. You are still guaranteed from the online auction site that if the car has be misrepresented in any way on their website you should be able to send it right back. So you don’t really risk much at all. Purchasing cars only has been made safer through the years.

So here are the benefits of online car auction sites.

• Shop when its convenient to you
• Search, find and compare prices on all cars and on all websites
• Manage your bids at your own time
• No travelling to auction sites that might be hundreds of miles away from you
• Get a great deal on shipping fees
• All information on the car and images are ready for you to inspect
• Guarantee from online auction site that if the car is misrepresented you can send it back
• Buy a car that’s cheaper than dealer rates

If you buy a repossessed car or an ex government car you can get an even better deal. Look around and you’ll find these deals on the web. Just be patient and do your research carefully.

Buying cars from auctions can end up in a profit or a loss depending on your understand on cars and how the car auction process works. It is always good place to get a bargain because when you buying a car at an auction you’re not paying dealer prices; neither is you paying for a guarantee. What you see is what you get is the theory behind car auctions.

So you should have some knowledge and experience with motor vehicles before you attempt going to a car auction let alone buying one. On the end hand, what you do need is a good attention to detail, wiliness to learn and great observation skills. Once you can master the technique of buying good low cost cars you’ll be able to sell them for profit.

There are two types of car auctions. The traditional local car auctions and the online car auctions.

Local Car Auctions

When entering a local car auction you will need to pre-register upon entering. There should be staff on hand to explain to you how to register and how to make your bids and general rules of the auction. Make sure you don’t just bid on everything because if you win you bought it.

You should inspect the cars that you’re interested in. Make sure you do a through check to ensure it’s a good buy not a dud. If you want to inspect the car closer you may have to ask for permission from the staff on hand. It’s wise to check up on the cars you want to bid on and make sure you set a bid limit otherwise you will be another victim of overbidding.

When placing your bids ensure that you signal the auctioneer clearly to avoid any miscommunication. If you’re in luck you might just walk away with a really good price on a car or cars. Each time you win a bid talk to the block clerk and tell them you want to settle your accounts. One of the staff on hand should be able to walk you through the payment process and the exchange of title.

Before you settle you have to also do a final check on the vehicle. You’re also allowed to take the car for a test drive before settling on the accounts. This is a way for the auction to ensure you the buyer that you didn’t buy a broken car and that it’s functioning properly.

At last settling your accounts. Most auctions allow you to pay by credit card and check and of course CASH! You might be asked if you want to have a third party finance the car for you. Here’s a tip, if your going to do finance make sure you get your finances organised outside of the auction. Third party financing at auctions usually come with a higher interest rate.

Once you have settled your accounts you can either drive away or ship it to your destination. If you need to ship your newly bought car ask the car auction manager for a good rate on shipping. They will usually give you a better rate.

Online Car Auctions

Offline car auctions are a little different. You don’t get to inspect the cars in person however you can request images of the car. If you’re interested in online car auctions make sure if you do buy one inspect the car as soon as it arrives and if there is anything wrong with contact the online car auction site immediately.