Buying a car at auction can be advantageous, but there are a series of steps and details that you need to know.
Normally, a used car can be sold at auction for a value of 30% below the value charged on the Fipe table. This can be an advantage for dealers and end users who want to park a nice car in their garage but often don't have the money to do so.
However, it is necessary to take a series of precautions before adopting this business model. It is necessary for you to fully educate yourself to understand how this procedure works and what the risks and benefits are.
To help you with this, we've answered some of the top consumer questions below from car auctions. Try it:
How does a car auction work?
Designing a car auction is quite simple. Firstly, however, it is advisable to take a look at the auction notice. There are all the rules for selling vehicles, including the process of purchasing a copy and payment.
By doing this, you avoid problems due to something that was not previously reported. After that, you must observe the lots (consisting of one car each) at the auction in person or on the company's website, which will be announced one after the other.
Once the lot you are interested in has been announced, you can bid (subject to the minimum bid) and if there are more interested parties for the same lot, compete with them to decide who takes the car.
It is important to note that once the property has been purchased with a specific bid, it is not possible to cancel the purchase. If the winner of the lot does not pay the bid amount, their registration is normally blocked, which means they will no longer be able to participate in future auctions.
There are several ways to participate in car auctions. In the case of confiscated copies, for example, due to non-payment to the bank by the owner, financial institutions usually inform interested parties about the auction that serves their region or state.
To do this, you must contact the organization for more information – this can be shared via online chat, on the website or by phone, depending on the bank.
How do I find out if a vehicle has already been auctioned?
Yes, it is possible to find out if a car has already participated in an auction and was sold at that event. There are some online tools for this where you can look up the vehicle history for a small fee, like Claims.
How does insurance work for an auction car?
Therein lies one of the main disadvantages of an auction car. As most of these models have already suffered an accident, many insurance companies do not accept these vehicles. Or if they buy insurance, they usually charge higher amounts and a lower compensation, around 70% from the fipe table.