The Common Misconception: Auto auctions are only open tocar dealers.
The Surprising Truth: Anyone with the right resources canparticipate in the same auctions as the dealers!Think about it. How much could you save if you bypassedthe dealers and purchased directly from their sources? 30%, 50%, maybe even 75%.As unbelievable as this sounds, it is possible with alittle patience and research.
As you probably already know from past experience, cardealers will do ANYTHING to get you into the car of yourdreams. Whether you can afford it or not!
I can recall a former coworker who got into a new luxuryvehicle with a little “creative financing.” The managerdivided his mortgage payment in two. His justification: As a married man his wife was responsible for the otherhalf of the mortgage….even though she was a stay at homemom! Luckily for them, they found a way to pay their hugecar payment and avoid repossession.
Unfortunately, others aren’t quite as lucky. Thousands ofpeople default on their loans everyday simply because theycouldn’t really afford it in the first place.This can work to your advantage. The banks and financialinstitutions that serviced the loans want to recoup theirloss as quicly as possible. Add to that the exhorbitantcost of storing these vehicles, and you can easily see whythe banks want to dispose of them in a timely manner. After all, the longer financial institutions have to storethese vehicles, the less money they’re going to get back.Auto auctions are the quickest way for banks to ridthemselves of repossessed vehicles.Car dealers know this, and they go to great lenghts toprotect this knowledge from the general public. After all,auto auctions are a huge source of revenue. Dealers canpurchase vehicles at a fraction of their value, and thenresell them at a huge mark-up. But what if you could avoid the dealer’s mark-up andinstead pay what they pay? What impact would that have onyour wallet?
Amazingly enough, auto auctions are not solely restrictedto car dealers. Up until a few years ago, I too sharedthis common misconception.It was only by sheer luck that I stumbled upon a websitethat allowed me to search local auctions by zip code andvehicle make that I learned the surprising truth.
I was paying dealers thosands of dollars in unnecessarymark-ups.I tried the website’s search feature out, and to mysurprise the cars listed were exactly what I wanted. Only a few years old with very low miles. Many of them werestill under the manufacturer’s original warranty! Thismade sense of course, since most of them wererepossessions. The auction house was even willing to throw in a vehiclehistory report at no extra cost and a 3 month warranty. Sure I wouldn’t get the complimentary car washes and oilchanges the dealer throws in, but that surely wasn’t worththousands of dollars in premiums. After a little hesitation I joined the auto auctionmembership site. They helped me locate auto auctions in myarea, and gain admission to them through their exclusiveaccess rights. I learned what questions to ask, and how tohandle the bidding process. It was a lot simpler then I ever imagined it could be.The day of the auction, I showed up a few hours early toinspect the vehicle I was interested in and get a feel forthe place. It must have been a slow day, because when my car came upfor auction only a few dealers were bidding against me. Since I wasn’t buying the vehicle for resale, I succeededin outbidding the dealers! It was a truely empowering experience. I got the vehicleof my dreams, and I only paid a little over half its bookvalue!What did this experience teach me? Auto Auctions can saveyou thousands in unnecessary dealer mark-ups.
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