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Auction Article

by Hello Harold

Posted on July 10th , 2019 at 10:15 AM

The process of selling a car can be described in three short words: Exhausting, infuriating, and downright annoying. When you choose to go through the whole process yourself, the above-mentioned feelings somehow become 10 times more powerful. But whoever said you had to do it yourself? As people lose their minds over the Internet and become amazed by its various capabilities, such as buying/selling a whole car, they forget that they could still do these things without necessarily using the internet. One of the many options you have when trying to sell your car is to give to an auction and let them handle the selling transaction for you.

Selling at an auction is a very convenient and profitable endeavor. It holds several benefits that you cannot receive when you are selling online, some of which are: Guaranteeing and knowing who you’re dealing with, saving yourself the worry of getting scammed/being exposed to fraud, having someone else deal with the selling procedure, etc.

Before even thinking about getting to the selling point, there are a number of things that have to be done to prepare the car for sale. Get your planner ready and write down the following checklist in it:

  • Make sure you can sell.
  • Give your car a checkup.
  • Write down its defaults.
  • Estimate a selling price.
  • Find a car auction suitable for your needs.
  • Talk to the owner or manager to discuss terms (for those wishing to participate in a regular/collector auction).
  • Assess the terms and whether you agree with them or not.
  • Get your car to the auction and prepare for what’s to come.

Make sure you can sell

Legal issues are no joking matter, nor will they ever be. Before you even consider selling your car at an auction, you need to check if you can do so to begin with. This involves checking a bunch of legal issues in order to determine whether you quality as a seller. To do so, the title of the car should be in your name as an owner or it should have a dealer’s license tied to it. Terms may defer from one country to another, but your local dealership will certainly know what it takes to qualify. Give them a call and they’ll give you the right info, or you can kiss your auction dreams goodbye.

Get your car a checkup

Hidden to the naked eye are several defects in your car that you might have not even noticed or thought were defects to begin with. While this step can be done on your own, it’s preferable to take it to an expert who knows cars like the back of their hand. Give them the time to go over the exterior, interior, engine, wheels, stain your daughter left on the cloth when she was 3, etc. Then, ask for a detailed explanation of what’s wrong, what needs improvement, and what is irreparable (if any). Take notes while he explains because you’re going to need them for the next step.

Write down its defaults

Write down a detailed list of its defaults. Afterwards, split them up into two categories: What needs fixing, and what you cannot be fixed (and thus what your buyer needs to be aware of when purchasing the car). If you have a little scratch or dent in the side of the car, you can easily fix this and improve the state of your car, which is a benefit for both the buyer and you (this will be discussed in the following point).

Estimate a selling price

After you’ve finally managed to fix that dent (sadly for you, it had to happen when you no longer needed the car), you are now at a stage where you can estimate the selling price. The selling price can be thought of as a math equation that looks like this: Good – Bad. If you’ve fixed a little bit here and there, the bad will go down, which means the price will go up. This doesn’t mean you take the price you bought the car for and subtract the damages, because a multitude of things will go into determining the price, like the mileage for example. You’re probably not a car expert and this will look a little bit hellish, but you can easily do it by referring to our article on how to rightly price your car for sales transactions (Shameless self-advertising).

Find a car auction suitable for your needs

The internet is not the only place with many, many options to sell, because there are all kinds of auctions tailored to your exact needs. From collector auctions to Internet auctions, there are many choices to choose from. The right way to choose this is to see what cars are most popular in each. Even if you’re heading down to your local car dealership, some cars are bound to be more popular than others as a result of demographics, seasons, and the overall economy. A suburban neighborhood flooded with kids will also be one that’s most likely flooded with SUVs and station wagons, because they’re the most affordable and spacious with regards to family size.

Two popular types of auctions these days (other than the regular, old-school car auction) are: collector auctions, and internet auctions.

Collector Auctions: An auction for everyone into antiques, rarities, and other wonderful objects. It’s a very specific type of auction that demands you have very specific requirements. For example, in Lebanon, should you sell a motor vehicle under the title of “vintage” it would have to be more than 10 years old from the time you wish to sell it. The same principle, take or give, applies to this type of auction: Your car needs to be a certain way to be able to sell in this auction.

Internet Auctions: You know how people just bid at auctions by raising numbers? Same thing here, except they’re shouting it at each other through laptop screens. This auction can be considered to be a virtual auction, where instead of dragging themselves over to a place to raise numbers and place bids, people do it from the comfort of their couch. In both cases, a sale is going to be made.

Talk to the owner or manager to discuss terms (for those wishing to participate in a regular/collector auction

The title of this section says it all. Meet up with the owner or manager of the auction in person to discuss terms such as the day of the auction, the selling price, the guarantee, etc.

Most importantly: The price! Stand strong in the face of potential decreases. At this stage, you would have studied the price as much as you could and lowering it is synonymous with throwing away your effort and some good cash into the garbage.

To convince a pesky manager or owner that the price you set is just fair, produce reports of the car’s condition and state and how it warrants the proposed price. A good idea would to have a professional mechanic outline all these details in a report which you can use as proof. Show them who’s boss.

Make sure to steer the conversation in your favor. Don’t succumb to their offers simply because you’re in a rush to sell, but take the time to properly think of certain propositions and to negotiate if you don’t like the sound of something. It’s perfectly alright if, upon hearing the terms, you have no idea whether you want to proceed with them or not. Ask for some time to think about things, and take your time making a decision.

Ask questions! What will happen if the bid is not high enough? If the largest bid is still below your price? Ask about absolute sales and protected prices in the auction. An absolute sale is when the car is directly sold to the highest bidder, while a protected price is the minimum price a bidder should pay for the car. Does the auction of your choice provide this? Does it not? Why not? Ask, ask, ask!

After the terms have been mutually agreed upon, you can proceed with auctioning your car in this symposium. If the waters prove to be far too troublesome, pick up your car and leave. There are many, many other auctions. Most car auctions

Get your car to the auction and prepare for what’s to come

This is it, the moment you’ve been waiting for. There’s really not much you can do here except get your car over to the auction, or on the auction if it’s online, and pray someone buys it. Good luck.

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