Car Auctions

Free Car Auctions For The Serious

Shoppers who are looking for an excellent deal on a new or used vehicle can try looking at free car auctions. The term free car auctions usually refers to an auction that is free to attend. Some of the more upscale car auctions charge a set fee to attend, even if the individual does not intend to bid. They may require that guests pay a small fee to attend the proceedings. Other auctions require guests to register as a bidder prior to entering the sale.

Free car auctions may also apply to auctions that charge bidders a fee on top of the sale price. This fee usually varies, but is often around 10-25%. It may also be known as a buyer’s premium, or a bidder’s premium. An individual bidder who places the winning bid will need to pay this additional fee before taking the vehicle home. For instance, the motorcycle that sells for $1,000 will actually cost $1,250 when a 25% premium is added to the cost. This fee is usually meant to pay for the cost of running the auction including the upkeep of the property and the auctioneer’s fees. A portion of that money may also go to the original owner of the vehicle. Free car auctions do not have these fees associated with their sales.

Free car auctions often do not advertise their services in this way. Even volunteer auctions such as those run by Goodwill Industries do not advertise themselves as free car auctions. Instead it is up to the potential bidders to find that information on their own. It may seem like an easy concept, but many people do not look for this information prior to attending an auction. They may think they are at one of the free car auctions, when they are actually required to pay a fee to attend, or to pay a premium on their purchases.

Take for example the man who attends what he thinks is a free car auction. He makes a bid on a small sailboat, and comes in just under his budget of $2,000. He is quite excited at this bid, and enthusiastic because he has a few hundred dollars left to spend on fixing up the boat. Then when he goes to pay for the purchase, he discovers that they charge a bidder’s premium of 25%. His $2,000 boat now costs $2,500 and he doesn’t have that much money. Had he read the details carefully, he would have discovered that he was not at a free car auction.

Free car auctions are generally easy to find because they are advertised in newspapers, on the radio, and sometimes on television or in specialty magazines. Prior to attending any car auction, it is important to read their instructions and understand the process before making a bid.