The Truth about Car Auctions

What I'm hearing from auction regulars.

2009-04-20T12:42:00.000-07:00

There's been a dynamic shift in the economy for the worse during the last 9 months. We all know this. But we all still have to drive. Living life means driving.

But what's happening is that people are so scared to spend money - even if it's just a small amount for a car at auction - that they're just milking their old and beat-up cars for everything they can. They figure they'll get a new car when the economy turns around. But you know what? That's what everybody figures.

So when the economy does turn around, I can guarantee that the auctions are going to be WAY more crowded than they are now. One guy who has hit some local car auctions told me last week, "There's just nobody at these things right now," he said. "Almost every car is a huge bargain. It's shooting fish in a barrel."

You heard the man. Shooting fish in a barrel. Like nabbing a 2007 4Runner for $3,000 or a 2006 BMW X5 for $6,000. Sign up for a site and start hunting while the hunting is good - better than it's ever been!

New Updated Rankings!

2009-04-19T09:06:00.000-07:00

I have recalculated the rankings after hearing from dozens of you about your experiences with the sites ranked below. There is a new No. 1! These are the best rankings I've put together yet, because they not only take in my own judgements and experiences but they also reflect the thoughts and experiences of hundreds of my loyal readers when it comes to car auction sites. These rankings are thorough and well-thought out; I have not seen a better resource on the web for car auctions than this blog. That's the truth. Reader reviews have given the new No. 1 auction site five stars across the board for its honesty, thoroughness and the number of auctions it gives users access to. The site is much improved and I've found more vehicles, for better prices, on our new No. 1 site than on any other. They worked to improve their database and their interface and it's paying off. Go below and check out the new rankings! Thanks!

Rankings can be found below or here.

Today's New York Times: Terrible year for Car Makers. Used and new vehicles overflowing sale lots. What does this mean? Auctions cheaper than ever.

2009-01-05T17:10:00.000-08:00

2008 may well go down as one of the worst years in the history of the auto business AND the consumer credit business. That means TWO things:

1. Car lots, used and new, are overflowing with vehicles - many of which will have to be unloaded at auction.

2. Cars are being repossessed at a record rate as people fail to meet their payments. Where do repossessed cars end up? They end up at car auctions, pure and simple.

This new year of 2009 should be the best year we've ever seen for snagging cheap cars at auction. The auction listings are fatter than ever and I've never seen this kind of volume before. Get signed up with a good auction site and prepare for the best car deals you have ever seen! Happy Hunting!

Be sure to see my car auction site rankings below.

To read today's New York Times Article on how bad 2008 was for the automakers, see here:

New York Times - 2008 was disastrous for all car makers, American and Imported.

AMERICAN-MADE CARS: They are a bargain right now!

2008-11-19T14:13:00.001-08:00

If you're interested in finding the best car deals that can be had right now - and there are a lot of them in the current climate - then you already know that buying your vehicle at auction is your best and smartest bet. What probably didn't occur to you is that American made cars, those from GM, Ford and Chrysler - are the best buys in the car world right now. People are picking up late model Chevy sedans and trucks, Ford SUVs and Chrysler minivans at less than $2,000 regularly.

The reason is that people are afraid - and rightly so - that our American carmakers won't be around much longer. Their woes are all over the news. The companies are quickly running out of cash and the bad economy is hammering them. The federal government is weighing a bailout program for the three that now looks like it may not materialize. People are afraid that nobody will be around to make American car parts or service their car in the future. Let me tell you know that these fears are unfounded. A cheap F-150 is a good deal - even if Ford hits some rough patches.

But that's okay. Here's what we have to realize: the only one of the automakers that the government will allow to go extinct is Chrysler. That is a possibility. But Ford and GM will be around. They have to be around. They are, as the cliche says, too big to fail. The government may let the companies fall into bankruptcy, but that only means that the carmakers will be able to reorganize and reemerge from Chatper 11 stronger than when they went in. They will shed their unwieldy union contracts and their pension funds and they will be able to compete with Toyota, Honda and Europe for decades.

Ford and GM have healthy customer bases overseas. Chrysler does not. If Ford and GM go into bankruptcy, rest assured that the government will supply the financing for them to exit. The car parts business and servicing business is a huge and profitable one that isn't going away. Nor are GM and Ford. Even bankruptcy, in this case, won't end these companies' reigns. They will be there in 5 years or 10 years when you need a part or a mechanic.

The moral of the story here: You will never find cheaper cars than right now. And you will never find cheaper American cars EVER. They are screaming to be bought. And there is nothing to be afraid of. These cars are the best American cars ever made, there just aren't enough buyers right now. The car market - and the American carmakers - WILL turn around. We've been through tough times before. In two years, when the automakers have recovered, your move now to buy a Chevy or Ford will look brilliant. Who said you can't get a next-to-new car for $1,200? Whoever said that wasn't living in these strange times. So jump in and make it happen. See my post below where I've rated the best online auction sites!

SEE MY POST BELOW WHERE I'VE RATED THE AUCTION SITES.

THE PRICE OF GAS HAS CRASHED, BUT CARS REMAIN DIRT CHEAP - GET THE CAR YOU WANT NOW!

2008-11-04T11:18:00.000-08:00

The price of gas, as I'm sure you know, has dropped below $3 nationwide. Our car markets, however, have not yet recovered. Our nation's auction lots are AWASH in great vehicles with few miles and even fewer bidders.

The car market will turn around. It always does. Don't wait until the car market is roaring and firing at full speed again - cars at that point will have gone up considerably in price. Buy LOW, buy now. There has never been a better time to be a shopper for a car at auction than right now, in late 2008. The deals I'm seeing are just absolutely ridiculous; cars at auction have never been cheaper. It's simply supply and demand. There's tons of supply from repo sellers and car dealers right now, but there's almost no demand.

Car shoppers are staying at home, sitting on their hands. And then watch as they all come out this spring looking to buy, and they all get burned by rising car prices. The lesson: buy now, buy LOW. This is a once-in-a-decade type of opportunity. Don't waste it. Read my posts below to learn what car auction sites are best and then get into the car you want for 10-15% of bluebook value. Good luck!

Buying Cars and getting Credit has become tougher than ever. But we have options - good ones.

2008-11-02T11:40:00.000-08:00

As we all know, the economy isn't in the best shape right now. The carmakers are in trouble and banks have pulled back hard on all of the lending, from home mortgages to car loans. And that's unfortunate for us auction hunters because there has NEVER been such a flood of cheap, almost-new cars to the auction scene as there is right now. Never. The opportunities out there are so ripe, it's unbelievable. All you have to do is look. The deals are literally everywhere.

The situation with banks, however, has made things a little tougher on us. When you go to an auction or prepare to bid on an online car auction, you need to have some plan on how to get your hands on the money to pay for your new car. You may have just landed a 2007 Toyota 4Runner for $4,500 at auction, but if you only have $1,200 in cash, you're going to have to come up with $3,300 somewhere! If you can't, then you won't be able to seize on these incredible deals.

The obvious solution is to get a simple car loan. But, as we know, getting a loan out of a bank these days can be a huge chore, and one that just isn't possible sometimes. And the best way to approach these car auctions is to do so with the financial side of the car purchase already set up to some degree, so the deal doesn't fall out from under you once you nail that perfect car at auction.

To that end, I've been looking for a great source for car loans - a place that is still lending ordinary people money to make their lives go around and keep cars - nice cars - in their garages. My conclusion is this: There is still lending going on out there, but you have to know where to go. So who still has their lending doors wide open? DriverLoans.com

This place is the No. 1 Auto Loan Network in the nation and it is still humming on all cylinders. Better yet, they're ready to help you get into the car you want at an affordable price. They will work with anybody.

I would not recommend this place unless I knew its application process was FREE and came with no obligations. It takes a minute to apply at DriverLoans.com. There are no hidden fees. Their computers can tell you very quickly what they can do for you. Again, the application is free and it takes no time whatsoever. Even if you're not sure that you're going to buy a car, getting your loan material in order is always a good thing. Then if you stumble into an auction bargain, you'll be ready!

So fill out an application here and then see my AUCTION RATINGS above and get searching!

$4 Gas means it's even more important to get your next car as cheap as you can. And small cars aren't so cheap anymore!

2008-07-28T21:36:00.000-07:00

Remember when small, fuel-efficient cars were cheap? Remember when we all wanted SUVs and nobody drove a small economy car? It wasn't that long ago. Times have certainly changed, haven't they?

What's happening now: Everyone wants to cut their gasoline bills and is turning in their big fuel-chugging pickup or SUV for a light-sipping Prius, Corolla or Civic. Makes sense to me. But what has now happened - what have the supply and demand of economics brought to us? Higher prices for small used cars! That's right - the price of used small cars has actually gone up! When's the last time a used car appreciated in value? Maybe never.

The Wall Street Journal reports that some used cars' prices are even approaching the levels of new models. If you want to buy a used 2006 Honda Civic, you can expect to pay $16,118 - or 86% of what a new 2008 model will run you. The average price of a 2006 BMW Mini Cooper runs 81% of what a new model costs. And the Toyota Prius? The ultimate gas-economy car? Forget it. A 2006 model runs 87% of what a new one costs! In the world we used to live in, the one with $1.50-$2.00 gas, two-year-old cars were worth about half of what a new car of the same model was worth. But now - for small cars - that trend has been turned on its head.

One of the problems is that Americans have been buying so many big, bigger and biggest cars during the last decade that our car makers stopped making very many fuel-efficient, small cars. So now, when we all want a Civic or a Camry, we can't get one because they don't make enough of the things. All the Ford Explorers and F-150s are sitting on the dealer lots now and not attracting much interest. The small cars, the Corollas and the Priuses, are blowing out the door - they can't keep the things on the lot. The strong demand has built up small cars' prices and now what do we have? Increasing demand and dwindling supply.

What this means: You have to work harder now, more than ever, to find a great car deal. And the best and by far the smartest place to get your car cheapest is at a Repo or Government Auction. It's not even close. Why pay $15,000 for your Civic or Prius when you can snare one at auction for $5,000? It takes a little extra work, sure, but we're talking about five-figure savings here.

The five-step car buying plan for the era of $4 gas:

1. Read my original post above and learn about the Web's most trustworthy, honest and worthwhile auction sites.

2. Select a site and sign up.

3. Form a plan. Determine what kind of car you want - be it a fuel-sipping Prius or a rugged Hummer - and set a price limit.

4. Search for your car at auction - and this is most important - BE PATIENT! Your car will come long! Patience, patience, patience... When your car does come, pounce!

5. Did I mention a budget and a plan? That's right, I did. Stick to them! And be patient! Give your search at least 2-3 months - if you want to save real dough!

The No. 1 thing to Lookout for when it comes to Car Auctions

2008-05-10T23:16:00.000-07:00

Obviously, there are cars you want and cars you don't want. There are models you're drawn to and models you simply don't like. We all have our preferences. The important thing, when it comes to getting your vehicle at auction, is separating the good cars amongst the group you like from the bad ones. If you're looking for a 4Runner, you should have some idea how to end up with the best 4Runner you can afford at auction. There is one rule for this that overrides all others: Age.

Don't buy a car just because you like the model if it's not the right year. All cars, no matter how well built, have a wear and tear deficit. Eventually, that deficit adds up and someone has to pay for it! Don't let you end up footing someone else's repair bill - someone else who put tons of miles on the car and then shifted the repair bill burden to you by selling it to you!

Aim for 2004 or newer - no matter how much you like that 2002 A4 in red, you should wait for your 2004 or 2007 model - don't get overcome with desire! Practice patience and discipline! Happy hunting!

Three Rules to Bid By

2008-03-20T19:39:00.001-07:00

If there are three pieces of essential advice I can impart to you before you set off to find your vehicle amongst the world of car auctions, they would be these:

1. Patience – You won’t find what you want at every online auction every day. Sometimes, the selections just aren’t as good. But it’s a cycle. You have to stay vigilant and check back often. Make a habit out of it. Every other day, drop in on your chosen auction site or, even better, sites, and commence a quick search of the website for the auto or autos that you’ve pegged your targets. Be persistent and consistent. The auction base is a constantly churning body of vehicles – make sure you do yourself a favor and use as many auction sites as you can afford and check them as often as possible. It’s a small price to pay for eventually snaring your dream car for 80% off of market value! So – remember THAT – that paying $40 to use an auction site is well worth it when you land that 2006 BMW 3-Series for $3,000! It will be the best money you ever invested.

2. Stay with proven sites - I’ve said this before and I will say it again here: stick to proven and upstanding websites that you can trust. I’ve tried most of them out there, and I recommend four listed on my blog here. We’ve all been swindled, one way or another, big and small, during our lives. It’s not a good feeling. Don’t get that feeling on your car search. Stay the four sites I’ve listed below and trust that your car auction search is in the best hands possible. All of these sites have been up and running for several years and have proven themselves to be legitimate and dependable sources for repo auctioned cars.

3. Set a price limit - Get your goal price and stick to it. Do your research and set a limit for the price you’ll pay for your car. If the bidding goes over that, stop. No exceptions. This way, you won’t get emotionally tied to the auction process, which can have dangerous repercussions for your pocket book—and the whole point of this is to save and make a lot of money, right!? So, with a preset limit, your choice to bid or abstain should be automatic. If the price is under your line, you bid. If it’s over, you start searching for a new auction. Trust me, nothing feels so good as when you stick to your guns, do a diligent search and find the exact car you want for a price below your limit. Now let’s get bidding!

Click here to return to main page and the 4 recommended auction sites.

Additional useful links for Online Car Auctions (there truly is some great stuff in here):

2008-03-18T09:16:00.000-07:00

Consistently Voted Best Car Auction Finder on the Web.

Top source of Government Auctions on the West Coast.

This is the benchmark place for police auctioned vehicles.

No. 1 Website for Seized Vehicle Auctions. Repossessed cars = opportunity for you.

This site has comprehensive list of Government Auctions ranging from the South up into the Northeast and the Midwest.

This site, Car Hunter, offers the best medium to find rare and high-octane sports cars at auction.

Absolute best site for surplus auctions of fleet vehicles that companies and the government use for a year and discard.

Click here to go back to main site.