Sitting in the office of Dakil Auctioneers, Inc., Bill Rackley regularly hears the phone ring with the same question commonly asked from prospective buyers: “When will you have cars for auction?”
“People have caught on to the fact that you can find quality cars at a reasonable price,” says Rackley, a longtime auctioneer, appraiser, and consultant with Dakil.
Gone are the days where you can beef up your garage, or personal fleet, only with quality used cars from a dealership. You can score money-saving deals by visiting auction houses without the hassle of haggling with a car salesman.
Nowadays, finding cars at auctions is more relevant than ever with the ongoing coronavirus pandemic causing Americans to tighten their budgets and look for ways to save whenever an opportunity arises. Today, we’re providing car auction tips and how you can buy your next vehicle at an auction.
Before you go into an auction, you should first know how they work. This could be the difference in scoring a deal versus being stuck with a vehicle you have no interest in.
There are two types of car auctions: dealer auctions and public auctions. As the name suggests, dealer auctions generally require a dealer license. Representatives from car dealerships attend these auctions to bolster their inventory, buying cars at an affordable price before marking them up on their own lot to score a profit. Public auctions, meanwhile, are open to anyone interested in purchasing a vehicle. At Dakil, we have an auto license to ensure quality and security with our buyers and sellers.
Buying from a dealership locks you into a fixed price, whereas you bid against others at an auction without a set price. Often, Rackley says you can save 20 or 30% (sometimes even 50%) at an auction.
Here’s the trade-off with buying a used car at an auction: You inherit more miles for a better price. But, Rackley notes how most cars last several hundred thousand miles. He’s even driven some cars 400,000 miles before.
If you view a car before the auction, either in person or online, you can use the vehicle identification number (VIN) to find a history report on Carfax. This will give you a more accurate idea of any accidents or major repairs. Consider checking Edmunds or Kelly Blue Book to get an idea of what the estimated value is so you have a better grasp going in. Set a bidding range and a budget and stick to it.
Go to a reputable, local auction house, such as Dakil, if you decide to look for a car. Local auctions are often the best route to ensure a smooth process without running the risk of walking away with a bad deal. Here, various vehicles are a part of daily auctions compared to dealer auctions solely limited to vehicles with hundreds of options to choose from. For example, a business liquidation of an electrical company may feature several dozen trucks up for auction along with other commercial products.
If you’re new to auto auctions, you may consider attending an auction or two ahead of time to familiarize yourself with the process. This will help reduce any pressure or rushed feelings of buying a vehicle that you haven’t thoroughly inspected.
Car shopping at an auction isn’t for picky buyers who comb over every detail. But, don’t confuse this with lacking thoroughness in your decision making process. We’ll have more on this later.
More often, you’re there to find a bargain. Chances are, you’ll experience a letdown if you have a predetermined color, make, or model in your mind. Instead, go in with a general idea of what you’re looking for.
Buying a car at an auction works like any other aspect of an auction. You bid on the item and, if you have the highest price, you head to the counter to pay. You’ll get the title in less than 10 days if the vehicle is from a company or an individual. If the vehicle is part of a bankruptcy auction, you’ll have to get the title from a bankruptcy court.
Be prepared to pay with cash or have some other form of financing ready on the day of your potential purchase.
“I always tell people to have your financing in order and get approval from your bank,” Rackley says. “You can get a bank letter of credit so that way you won’t have a problem.”
For sellers, you must remove any liens before an auction. Then you sign a notarized title agreement, give it to the auction house, and they’ll certify mail to the new buyer. At Dakil, you’ll receive your money in 20 business days. For more information on buying and selling at auctions, check out our guide to auction certifications.
It’s important to remember auctions sell cars “as is.” Before you even think about placing a bid, make sure you inspect the car. What you pay for is what you get, and you’re assuming the risk.
“I used to make this announcement when I sold hundreds of cars a week at different auctions. I would tell them, ‘If you buy it and it falls into three pieces, you still own all three.’ We tell you everything we can about it so you can make an informed decision.”
While you won’t be able to test drive the car like at a dealership — due to liability issues — you can still inspect it to ensure there aren’t any major problems or defects.
Rackley suggests attending auctions that allow you to start the car and perform a basic checklist. He recommends checking fluid valves, such as ensuring the previous owner maintained the oil or if there’s enough coolant in the radiator. In some cases, you may be able to see a cracked head gasket that produces a creamy, white liquid. Once you start the car, check to ensure the cold and hot air work properly.
In general, there are several ways vehicles end up at auctions. Many businesses include cars and trucks as part of the liquidation process. Other times, estate sales, bankruptcy auctions, or consignment auctions feature personal cars.
You can also bid at two types of impound auctions, either police auctions featuring repossessed vehicles or private auctions featuring local junkyard and towing companies.
At Dakil, we deal with businesses and individuals who are looking to auction off vehicles. Rackley suggests 30-40% of estates have vehicles tied to them. Often, industries with fleets, such as plumbing, electrical, or landscaping, offload trucks at auctions. We’ve sold vehicles for Oklahoma Natural Gas, the city of Oklahoma City, and Enable Midstream Partners.
Your best bet to see the latest cars available is to check our upcoming auctions page. From there, you can click on individual auctions to view a catalog of items to bid on. Our quarterly heavy equipment auctions, such as the latest one Aug. 15, 2020, generally has the largest selection of personal and commercial vehicles. If you choose to attend an in-house auction, we’re practicing social distancing, providing masks, and taking temperature checks for each guest. You can read more about our safety measures.
Aside from that, various estate and consignment sales feature personal and collector vehicles. We recently auctioned off a 1981 Corvette Stingray, a 1980 Mercedes Benz 450 SLC, and a 2008 Ford Shelby Cobra. Last year, we sold a fully restored 1968 Chevy Camaro equipped with a V8 engine, a restored 1964 Chevy El Camino, and a 1972 Chevy El Camino.
Contact us today, or call directly at (405) 751-6179, if you have general questions or specific inquiries to vehicles available at upcoming auctions. Subscribe to our newsletter to stay up to speed with the latest trends in the auction industry.
