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December 30, 2013

Some Rules to Keep in Mind About an Auto Auction

Before you actually decide to walk in an auto auction, you have to ask yourself how much are you really familiar with cars? Or do have a discerning eye or sufficient knowledge which can identify the hidden damages to the car? In an auto auction you would have little time to carefully inspect the car amongst all the drama around you. You need to have a beforehand knowledge or consent with an expert before walking into an auction.

Another important rule is to establish contact and build a relationship with the auctioneer. It’s amazing how far will you go if you exhibit good nature and strike an interesting conversation with auctioneer. Obviously, sellers won’t become your well wishers with a whip of a magic wand, but they will look out for you and help you out if you become a familiar face.

You should know about the auction rules. The auction block usually has four lights; red, yellow, green and blue. Here are some highlights of what these lights mean. Red light is the ‘as is’ light which means you are the higher bidder and car is yours. Yellow light means the auctioneer is going to make an announcement about an issue with the car. Green light means you can drive around you vehicle for inspection if you are a winning bidder. Blue Light signals a situation called “title attached,” which means the title has yet to arrive at the auction. You have to have know-how of these rules which can vary from auction to auction.

December 23, 2013

How Do I Find The Right Car in the Auction?

A step even before entering into an auction is to figure out what kind of car you want to buy. With a huge, irresistible variety of shinny cars parked in front of you, it’s hard to keep your needs in perspective. You have to narrow down your choices to a few cars which are more attuned to your lifestyle. Before you start fixating on certain group of cars, you have to take a pause and ask yourself some questions which will help you prioritize your needs.

Do you have a big family; need space for both groceries and car seat? Do you prioritize MPG over power or vice versa? Do you want your car to be more catchy or convenient?  The time you spend on answering these questions will help you figure out exactly what to look for in an auction. Moreover, it will prevent you from buying a car which seems like a lovely ride but later turns out to be unnecessary luxury or not fulfilling.

The next thing you have to consider is the budget you can spare comfortably for the car. Try looking for a car which has benefits that outweighs the cost you are supposed to spend. e.g. you have a job which has an absolute requirement of a car which can take long routes and saves on mileage. It is wise to invest even a bigger sum of money in such situation because it will save you much more in future. Also keep in mind that a vehicle loses 15-20% of its value in first year. So, avoid borrowing money to pay for something flashy which is significantly going to lose its value in the following years.

December 17, 2013

Should I Buy Car Warranties in a Used Car Auction?

Car warranties are basically another form of car insurance. They pay for the damage in case of accidents but off course they don’t happen more often. Car warranties are more commonly bought for psychological reasons than for financial safety. No matter what most companies publicise, on average, they expect to make money selling warranties rather than benefiting the buyer. Obviously, that won’t happen if they pay more for damages than they earn from selling warranties. So, if you have saved up enough for emergencies, you should preferably consider avoiding warranty.

On the other hand, if you perceive the idea of used cars being more prone to damages, you should go for the warranty and rid yourself from daily headaches of paying large bills. Even if you have made your mind, you should consider other factors as well because different companies offer different coverage options.

What car components should be covered in plan? If you have some mechanical knowledge or you have found problems in the vehicle history which are specific to certain parts, you can opt to buy powertrain warranty which generally covers engine, transmission, drive axle etc. It will keep you from spending unnecessarily and put your mind at ease.

How much is the deductible? Is the specific repair shop far from your location? etc. Your goal while buying a car warranty is to maintain a balance between your financial constraints and your peace of mind. You have to make sure that you are not paying for something which is not absolutely necessary.