Many people will be uncomfortable with the idea of selling their car at physical auctions. In the past, it has been considered something almost exclusively for those who are working in the used car trade itself. This is partly because of the fact that selling a used car at an auction generally means selling it for less than you could get from a private buyer. As such, auction sales are commonly associated with big organisations that need to dump large numbers of cars quickly. For instance, leasing companies, fleet management companies, dealers, and the police will sometimes need to change their fleet very quickly without necessarily needing to get the highest price for their used cars.
This has, in the past, led many private individuals to be put off the idea thinking it was not for them or that the atmosphere would be too formal. However, if you want a quick sale and a new and exciting experience car auctions are ideal places for you to get rid of your car, particularly if your car is of the sort that is difficult to sell to private individuals.
The first thing to do if you would like to sell your car at a physical auction is to ring up the auction house and arrange to bring it in. What then happens is that they will give you a time to bring it along and the technicians will inspect it and draw up an accurate inspection for the auction guide. They will attempt to place a monetary value on the damage that has been done to the car over the years since you bought it.
They will then photograph your car and 'lot' it, parking it up in their lot ready to be viewed by buyers and then auctioned. It will be given a number and put into the auction program if there is one. This may be a print or online publication on selling your car on ebay or both. When you enter your car to auction it is important to ensure that when you enter your car for auction you include all of the necessary manuals and paper work including your car log book (also known as a V5C registration certificate), hand book, service book, garage receipts or anything else that is relevant.
After that point, you will need to think about reserve price. It is a good idea to take the advice of the auctioneers on this as they have an incentive to charge as much as they think they can possibly get since the auctioneers gets at least 10% of the final value of your vehicle. You will usually set some sort of reserve price below which you would not want your car to sell. This costs extra but helps make sure that you don't go home having sold your car for far less than you think it should be worth. If you just want to get rid of the car, however, you do not have to set a reserve price.
Generally, you will pay the auctioneer a fee just for entering your car in the auction. This will amount to somewhere between £15 and £30. This plus the final percentage commission and the reserve fee is all that you will pay.
Once in the auction room, your buyers will bid against one another, raising the price in standard increments with each bid until one person is left as the highest bidder. All bids are made publicly in an open room in the traditional English style of auction. One by one the cars will be driven into the hall and buyers will take a close look at it. The full details of the car will be read aloud to everyone present before the auctioneer starts the bidding process with an opening bid. A bid on a car in an auction is a legally binding contract that a buyer cannot easily bow out of once they have committed to.
If the highest bid does not meet your reserve price the auctioneer may then attempt to make an agreement between you and the buyer. You may choose to allow the buyer to buy for less than the reserve price whilst attempting to negotiate such that you get as much as you possibly can out of them. Either of you can pull out at this point if you refuse to accept the buyer's original offer. If you accept an offer from the buyer, however, the sale will go through.
Should you fail to reach an agreement with this buyer you can keep your car with the auctioneer, agreeing to enter it in future auctions and charging you the same entry price each time. They may also charge you a storage price if your car is put through a certain number of auctions. Once your car has been sold, the auction house should handle all of the paperwork and send you the funds once they have been paid by the buyer.
Content by Robert Prime