Avoiding Auto Auction Disasters

The auction ends and the auctioneer points to you and says "sold"! Your feeling like you just won the lottery and knowingly so, you just saved a few thousand dollars. Or did you? Did you pay close attention to the title? How about a confirmation from the auctioneers that it will pass state inspections? Being informed about the risk associated with what your about to purchase is paramount.

First of all, clean titles are your passageway to an easier transaction. I have attended auctions that had unusual title statuses and liens. Avoid these cars at all possible means. They just are not worth the headache and red tape you will run into when trying to register your vehicle. Auctioneers must legally tell the public before any bid is placed on the state of the title. It can take up to weeks to clear any title issues. And even worse than this scenario is a vehicle that looks, sounds, and seems mechanically stable but has a hidden issue. Its the hassle of having to smog a vehicle if you live in certain states that require emission testing before being issued the title. Believe me, it isn't fun to get a good deal on a car, and then find out it fails smog.

If a vehicle doesn't pass state regulated emission testing, you can end up spending hundreds or even thousands of dollars to get it to pass. A few years ago I caught a good deal at an auction that did not know the status of the emission test. The car cost me $1300 and was excellent mechanically minus a few cosmetic issues. But soon I learned an important lesson in high-risk auctions. The car failed the emission test and to my surprise, it would cost $1000 for a new computer. Now I just bought a car for almost market value and cosmetically its a little trashed. Be sure the auctions you attend are informative and have points of inspection declared.