Need to sell a car but don’t know where to start? Advertisements, paperwork, dealing with questions from potential buyers, meeting them again and again… Let’s face it; the experience is totally exhausting. It can make you lower the price significantly just to put an end to all the hassle and time-wasting. However, there is another way of selling your car for a good price while avoiding all those tiresome routines – auctions.
A car auction is quite a common way to sell a vehicle that you don’t need anymore, make a good profit, and not just tread water. It acts as a matchmaker, helping a seller and buyer to meet each other in a physical location or online. Auctions help to increase the interest in your car and eliminate the need for haggling, which could save you money.
How to Auction a Car
1. Find a reliable auction provider
Choosing the right company is a key to success as they coordinate and regulate all the processes from the beginning till the end. The auctions don’t have any regulatory bodies; thus, you may just check all the information available online: number of locations, number of cars sold and added daily, frequency of the auctions, types and makes of cars, and reviews. Obviously, the higher the numbers, the more reliability they present.
For instance, at SCA car auctions in Nashville, around 2,000 cars are added daily, and they are presented in more than 200 locations – and these numbers signify the trust of the customers. Besides, the choice is tremendous – from old-school Fords and Chevrolets from the 50s to ultra-modern cars like the Tesla Model Y.
Make sure that the auction company handles all the paperwork, as it is an important part of the selling routine, and check if they have online and offline access to the cars, as this adds another layer of confidence.
2. Take care of the car’s appearance
Everyone understands that cars sold at auctions are rarely brand-new and faultless, but there are still numerous things to pay attention to. Cleanliness matters a lot. The car must be spotless – inside and outside. Even a scratch doesn’t look all that bad on a clean surface.
Take your time or pay for professional cleaning, as it will increase the value in the eyes of the buyers. When they see a more attractive vehicle, they’ll be more willing to make a higher bid.
3. Conduct a car inspection
After finding a trustworthy auction house, it’s time for qualified technicians to take their lead. Upon arrival, your vehicle is examined and assessed in order to present a detailed description for potential buyers. All the damages and defects will be documented and photographed, and they, accordingly, will influence the final price tag.
An honest assessment from a reputable company can increase the appeal of a car in the eyes of buyers as well, so be sure to take a good look at all the options available to you.
4. Prepare the documents
Along with bringing the car, you are expected to provide all the related documents and manuals: the registration certificate, garage receipts, service books, if available, and the vehicle handbook. The more paperwork you have at hand, the better.
5. Set the price and the reserve
After proper evaluation and agreement on the price, the car is taken to the parking lot.
One of the options you may consider is a reserve price – the lowest fixed amount you are willing to get from the sale. Such an option is to be paid for additionally and is worth trying when you are not pressed on time. However, if you are in a hurry and just want to get rid of the piece of clutter in your garage, skip it.
6. Bidding
Once the car is allotted, it is given a specific number and enters the auction. The bidding process starts when the potential buyers make their bids, competing against each other. The one who offers the most is the one to leave with the car. A bid offered at an auction is a legally binding agreement.
What’s in it for the auctioneer?
The auction house is interested in selling your cars at the highest price possible because they have at least a 10% commission from each deal and additional fees. However, you are given freedom from all the burdens, which makes it a great option for those who don’t want to deal with all the hassle of selling a used car. Remember that different auctions may offer different terms and conditions, which is why it pays to be prepared before trying to sell your car on a certain auction site or an offline auction.
Why is the auction house a wiser decision than a private sale?
Auction houses create the situation of social proof. The more people that start bidding, the more everyone wants to get involved, thus, increasing your profit. Under certain circumstances, it is easy to recommend this option as the more profitable one.
When selling privately, you deal with one person, so there’s nobody to create a competitive environment. Yet the auctions stimulate the desire to have this exact and exclusive car. And there’s no haggling later on, of course.
Besides, auctions oftentimes have exclusive makes of cars, which is about scarcity. Our society is greedy for something that comes in a limited number, as it gives the feeling of uniqueness. Someone’s desire to own a scarce product, someone else’s longing to possess something that’s somewhat unique – all of this could possibly drive the final sale price higher than what you would receive via other means.
Selling a car isn’t something you do every day. It is not something that can be done by everyone as it requires knowledge and communication skills; otherwise, sellers risk losing money. You can either do it alone and get involved in the whole time-consuming process, or entrust it to the professionals, get good money for the vehicle, and enjoy a stress-free experience. Seeking outside help is never a bad idea if you know it will be worth it.
