All You Need to Know About an Auctioned Vehicle with a Damage History
When looking to buy a used car at an online vehicle auction, many folks focus primarily on their budget and the type of car they are looking for. However, there are many other factors that need to be considered when going the online auction route, one of which is navigating through auctioned vehicles that have a damage history. We will take a look at some of the factors to consider when choosing such vehicles at an auction in this article.
THE COST
One of the advantages for purchasers at an online vehicle auction is the decreased retail price of cars that come with a damage report. Even if the repairs are immaculate, used automobiles with a damage report cost almost 60% more than cars that have not been in an accident. Not only does this allow you to buy automobiles for less money, but it also allows you to acquire luxury models from top-tier brands for the cost of a budget vehicle from an economy brand.
Finding damage in a vehicle’s past may be the opportunity you’ve been searching for if you’re one of the many used car purchasers with luxury-brand taste on an economy-brand budget. Even if the repairs were flawless, the vehicle’s history influences its value. A model that has been damaged and restored has a different value than one in its original state, much like anything else you’d buy — think refurbished phone or laptop. However, if the damage has been professionally fixed by a trustworthy provider, an accident-damaged car may still be an excellent bargain — and can help you get a better price and perhaps into a more premium model than you might have otherwise. You may also use the car’s accident history to bargain for lower costs.
THE RED LIGHT
Buying a used car at an online auction with a damage history is not a total loss depending on the condition of the vehicle. This is the light that is “as is.” If it’s on and you’re the highest bidder for the car, it’s yours, as is. Even if the car is sold “as is,” you can still arbitrate and contest the acquisition due to frame damage, flood damage, or title concerns. Some public auctions say that you have no recourse if the vehicle’s odometer has been turned back. However, under the Uniform Commercial Code, which controls sales law in most states, you have options. However, if the gearbox or engine fails, it is your responsibility.
THE TEST DRIVE
As you may be aware, new automobiles depreciate more quickly than used cars. This is a great time to evaluate the vehicle’s performance and depreciation value. Although automotive depreciation statistics aren’t always precise, drivers should be aware that most vehicles lose around 60% of their overall value during the first five years. The automobile depreciates at a significantly slower pace after five years.
When you acquire a damaged automobile at an online vehicle auction, the depreciation rate is considerably slower because it has already lost the bulk of its worth. As a result, if you want to sell the damaged vehicle you purchased, you will not suffer as big of a loss as compared to selling a car that has never been damaged.
After you’ve looked through the vehicle’s damage history, take it for a test drive to ensure everything is in functioning condition. You should also double-check the distance by counting the number of miles travelled since the accident. It’s a good idea to drive at least 19,000 miles every year and be aware of any sounds.
GET A SECOND OPINION
One of the top ten mistakes automobile purchasers make is not inspecting and testing their vehicles thoroughly enough. That’s why it’s crucial to contact a reputable mechanic ahead of time to analyze the vehicle’s damage history.
Hiring a qualified technician to do a pre-purchase damage assessment will provide you with a thorough exterior and interior examination. Pay close attention to the smallest details and follow these guidelines to make a confident purchase.
Ensure that your technician inspects the quality of any repair work as well; if the repairs were not performed by a skilled and respected mechanic, you might face more issues down the road. To ensure that everything works well, only purchase from a reputable source.
ASK FOR A VEHICLE HISTORY REPORT
You’ll want to know what you’re getting into. A vehicle history report from AutoCheck or Carfax may reveal a lot about a vehicle’s past. Many public auto auctions will also post their inventory online, including with VINs, so you can figure out which automobiles are worth your time.
Get a membership to one of these vehicle-history report services and use it to examine the automobiles you’re thinking about buying. Has the car been sold to a number of different people in the last year? If it has, it might indicate major technical problems with the vehicle. Is there an up-to-date emissions certificate? Before you attend the auction, you may learn about all of these potential stumbling hurdles.
WHAT ABOUT INSURANCE?
Don’t’ forget about car insurance. It’s critical to consider how much extra money you’ll have to invest in the car before making a purchase. The key to getting insurance is ensuring you acquire more of an asset than a liability.
Simple aesthetic damage fixes, like as scrapes, are acceptable; they may be viewed as a way for purchasers to acquire good discounts and simply restore them at a body shop. However, if a car is totaled as a result of a major collision, it is considered a total loss, which will cost much more to repair and is not worth the effort. Vehicles that have been resold as salvages may also have serious frame damage, making them unsafe to purchase. Because banks and lenders will not accept significantly damaged automobiles for auto insurance claims, salvage title autos may cause you further financial issues.
If a car has been traded in, leased, repossessed, or totaled, it’s likely that it’ll end up among the almost 9 million automobiles acquired each year at an auto auction, whether it’s for dealers or the general public. Few individuals outside of the car industry are aware of the sector’s size and scope. In terms of the sheer amount of objects sold at auction, it’s only second to Wall Street.
Auto auctions are pure capitalism, which is what attracts purchasers looking for a nice used automobile at a reasonable price. To find the best selection of used vehicles at an auction, go to RideSafely.com, the go-to resource for used cars available at a bargain, along with a plethora of useful information and tips that you can use when buying a used vehicle at an online auction.
Find out more: UNRAVELING THE MOST COMMONLY USED DAMAGE CODES FOR AUTO AUCTION
Originally published at https://auction.ridesafely.com on April 28, 2022.
