How To: Buy a Car at Auction – Feature – Car and Driver

How To: Buy a Car at Auction – Feature – Car and Driver:

How To: Buy a Car at Auction

Six tips to make it enjoyable.

• APRIL 2010
 
• BY PAUL DUCHENE 
• ILLUSTRATION BY BRETT AFFRUNTI

Remember that old proverb, “Marry in haste, repent at leisure”? Spend too much for a car at auction, and those words will weigh heavier than your aching head the next day. And there’s the added bonus that your inanity may be memorialized on the Speed Channel. Auctions are the fastest of fast tracks—you are betting you know what you want, that you can recognize a car’s strengths and faults, that you know what it’s worth, and that you have the cool head to stop bidding at that point. The attraction of auctions is that there are rare cars to be had that are not found anywhere else. Auctions also let you avoid dealer markups or overly ambitious owners. Here are some tips to make the experience enjoyable. It’s work, but it can be fun, too.

1. READ the auction catalog (or the online version, if that’s all you have) closely. The model may be famous, but what’s the history of this example? Was it rebodied? Do the numbers match? Does it have a complete ownership trail? Is it a tribute or a re-creation? Does it seem out of place at this sale—a VW Beetle at a muscle-car auction—which might make it cheap, or alternatively incorrect (and buyers might not know)?

2. ATTEND the auction. Sure, you can bid by phone, but would you really buy a car you hadn’t seen? Did anyone ever buy a vehicle on eBay that was better than they expected?

3. REGISTER early as a bidder and provide evidence you have the money to buy a car. You’ll need a bank statement or a credit card, and expect to sign a contract that discloses the buyer’s premium (a fee added to the winning bid). Don’t show up late and face a long line; that could mean missing the car you want. Get a list of the order of the cars at sign-in and calculate when the ones you are interested in will cross the block.

4. EXAMINE each car closely. Is it original? Is it the correct color? Educate yourself on the model or take an expert with you. Understand the VIN codes or have somebody along who can. Look past the shine at the details. Is the engine correct? Does it leak, smoke, or make bad noises? Is the body straight? How good is the paint? Look for documents. If the owner is there, ask questions about the car’s history and work that’s been done. “Don’t know” doesn’t cut it. Cars that look too good to be true may well be. If you “didn’t know they made one of these,” stop and think—maybe they didn’t. I bought a left-hand-drive, four-speed Daimler to illustrate that point. Great story but not factory. The guiding rule is always: No stories.

5. BIDDING is best done where you can be seen by the auction ringmen. They watch the crowd, so make sure you’re fairly close and that they can see you and your paddle. Hanging back and joining the bidding late can sometimes work, but it can also generate another bidding surge, as somebody thinks they’re missing a bet. Set your top price and don’t go above it. Do not visit the bar; do not go with a new girlfriend or a college buddy. If you’re successful, resist the urge to turn to the TV camera with both arms extended victoriously above your head. Somebody at the IRS may recognize you.

6. SHIPPING is last, and auction houses have reputable shippers who will transport your car in an enclosed trailer. Don’t drive it yourself and get stuck in the boonies with big repair bills. There’s still a sales tax to pay; it takes effect in the state where you’ll register your car, so hopefully you’re like me and live in Oregon, where there is no sales tax.