While super-convenient, online auctions still draw a fair number of complaints — the biggest of which is that they aren't local — and come with risks. Many sites, however, are now allowing users to restrict their car search to a specific area, which limits the number of complaints, but the risks are still very much alive and well. Sometimes what you see online isn't exactly what you get. Check out the seller to make sure he or she is reputable and has a positive selling history. You don't want to be surprised when your "mint condition '67 Chevy" arrives looking not-so-mint. To be absolutely sure about what you're bidding on, consider traveling to see the car in person if it's not local. While the cost of a flight or road trip may be a lot to absorb, it may save you thousands of dollars — and quite a few headaches — later. Also, be aware of scams — which are plentiful in the online world. Doing your research and being aware of the consequences of buying online will do you a world of good in the long run.
Bidding is simple and users can follow the auctions with email alerts or simply by checking the site. If you win the bid, there are quite a few ways to pay and to arrange delivery of your new purchase. It really doesn't get much easier than that.
But if the thought of making a large purchase — like that of a car — on eBay leaves you uneasy, there are other online avenues to pursue. Professional auto auction Web sites do exist, but things work a bit differently than they do on more mainstream auction sites. The biggest difference is that you may have to pay a buyer's premium on top of the bid price in the event that you win the auction. While buyer's premiums are more common at live auctions, they can be charged during online auto auctions, too. Just do your research when signing up for an auction, and be sure you're not taken by surprise should you win the car you bid on.
Online auto auctions work a lot like on-site auctions, except there isn't usually a preview period and you can't inspect the car for damages. Reputable online car auctions should list all the information you need to make your decision, and they'll send the car to you for a nominal fee.
Payment process
Most auctions — local and online — accept cash, checks and credit cards. If you don't have the finances to buy the car outright, consider a financing plan. Most auction houses can set you up with a third-party financing offer, but often it's cheaper to go with an outside loan company. If you plan to finance your purchase, be sure to get approval before you go. Most mainstream online auctions do not offer financing plans, but sites catering to car auctions may.
Car Auction Tips
* Check the rules and regulations for the auction you're interested in before going. Some allow you to inspect the cars before bidding, while others don't. And it's pretty safe to say that if an auction house doesn't allow inspection, be leery. It's probably because they don't want you to know what's really going on under the hood.
* Before going to an auction, formulate a plan outlining what types of vehicles you're looking for, their estimated value and how much you're willing to spend. You don't want to be caught in the heat of the moment bidding higher than you can afford.
* If you're attending an auction that welcomes potential buyers for a preview period before the auction begins, consider bringing a mechanic along with you to inspect the car. Remember, there's usually no warranty, guarantee or return policy with car auctions, so you want to be absolutely sure the car you're bidding on is worth the money.
* If you are lucky enough to attend a preview period prior to auction, jot down the VIN number of the vehicle you're interested in. This will allow you to perform a car history search, which can reveal if the car has been in any accidents. Unfortunately, though, most classic cars won't be found on VIN searches because of their age. Also, you should inspect the car for any telltale odors such as mildew.
