How to buy a car at auction

Follow these tips and you could land a bargain motor.

Choose a reputable auction company 

Auctions aren't the back street affairs of yesteryear: British Car Auctions, for example, is a multi-million pound business with 21 sites across the UK. 

If you're looking for a very specific vehicle, look for auctions that list their catalogues on their websites beforehand.

Research how the car auction process works

Basically, you're buying a car `as seen', and although some vehicles do carry warranties against major defects and false claims, you sometimes have only an hour or so to detect the fault and notify the auctioneer. 

Read the small print as to what constitutes a major fault, and take the vehicle for a test drive as soon as you can. Remember that by buying at auction, you'll be buying a newer vehicle than would otherwise be the case – which offers some protection. You can always restrict yourself to buying a car no older than, say, two years, further minimising the risk of buying a faulty car.

Research the hidden costs 

The price at the fall of the hammer isn't the only cost you pay. You may also have to pay a buyer's fee.

This `levy' is how the company indemnifies buyers against proving to be stolen property, the subject of outstanding hire agreement, having a false mileage reading, or being an insurance write-off.

For a fee, the RAC's Car Data Check service will also alert you to any such problems.

Take title of the vehicle as soon as you can

A storage fee is likely to be chargeable for each day or part-day the vehicle remains uncollected. So not only are you paying out more money, you can't test drive it until you own it, and meanwhile it's sitting there in the compound at your risk, not the previous owner's.

Understand the payment methods 

Car auctions used to accept cash, telegraphic transfer, or banker's draft. Now you can pay by credit card and debit card as well. Research each, and the costs – there's usually a handling fee for credit cards, but not debit cards. Clearly, a fee of 2% + VAT on a £4,000 vehicle is worth avoiding, if you can. 

On the other hand, to pay by cash, debit card or banker's draft, you've got to have the money in your account. Be aware, too, that there's often a requirement to pay a deposit once you have made the highest bid.

First, go along to watch, not buy 

Once you've chosen your auction and researched the system and the costs, go along and watch. Don't take any money, leave the plastic at home, and go and see how it works in practice. The pace is fast and furious, with cars being driven in front of the auctioneer for only a minute or two before the hammer falls and bidding starts on the next one. Next time, tell yourself, you'll be here for real: does it feel comfortable?

Pick an example of the sort of car that you might be interested in, and follow it through from the compound to the hammer drop – this is your opportunity to listen to the car's engine, ask the driver any questions, and generally make a judgement about whether you would feel happy to bid on the vehicle. To get a feel for prices, and to avoid over-paying, take along a copy of Parker's Guide to second-hand car values, available from most newsagents. Remember, this is a practice – so that when you do it for real, you'll be able to concentrate on getting a good deal.

When buying for real, take along backup

For a start, ask a mechanically-minded friend to accompany you, if possible – they'll stand a better chance of hearing `odd' engine noises, or spotting something that's not right. And take your spouse or partner, if the car is for them – it's a little too late to discover they don't like mustard-yellow when the car is sitting on the drive! The usual rules for going to an auction apply: agree an upper limit for what you're prepared to pay, and venture beyond this with extreme caution.

If all that sounds too scary, remember this: you've nothing to lose by going through steps 1-6, but then dropping out without buying if it all seems a bit too much. So undertake the research, and then decide for yourself if it's for you. Happy hunting!

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