Monday, March 14, 2016

How Much Does an Auto Auction Really Cost?

There are many fees and expenses to keep in mind when bidding for a car at a public auto auction. If you end up as the winning bidder be prepared to pay more than just the winning bid.

Auctions fees
These can take on a number of forms at a public auto auction. Sometimes there is a flat fee for entering the auction and receiving a bidding number. It is also possible that you might pay a percentage of the winning bid to the auction house. Or there might be a combination of the two. In either case, be sure to understand what the auction fees will be if you are the winning bidder.

Registration and Licensing
Be prepared to register and license the car if you purchase a car at an auto auction. Especially if you are at a government auction, you will need to also provide proof of insurance. Before you go to the auction, learn the registration, licensing and title transfer fees of the state in which you are purchasing your car.

You will need to think about how to get your purchase vehicle home once you are the winning bidder. If the car is in need of repair or is not capable of being driven long distances, you will need some sort of trailer to transport the car. Renting a trailer can also add to the overall cost of the car purchase.

Be sure to figure in any costs of repairing the vehicle if it is not in good working condition. You will need to have a good idea ahead of time about how much repairs are going to cost, so that you do not go over budget during the auto auction.

It sure is possible to find good deals at public auto auctions. But there are a number of other expenses you will need to consider before knowing if it's a good deal or not.