Buying and selling at a car auction in the Philippines can be quite the experience. It can help to be prepared in a number of ways before finalizing your bids. This is in order to maximize the amount of money you are willing to shell out. Make sure that you thoroughly inspect a car’s interior and exterior parts to ensure that you are really getting what you paid for. If you are hesitant with your examining skills when it comes to a car auction in the Philippines, feel free to bring a friend or a professional mechanic to help you out.
Here are 10 things you didn’t know about buying and selling cars in an auction:
Each auction is catered to specific cars, eras, and audiences
If you are interested in buying and selling cars at a car auction in the Philippines, it is important to find a professional and reliable auction house. These companies have had enough experience with auctions that they only showcase vehicles that would benefit the bidders. Employed in these auction houses are auctioneers that are knowledgeable about anything and everything regarding cars, and could easily answer any inquiries that you might have.
If you are looking for a specific kind of vehicle or are interested in looking at models created during a certain era, there are a number of specialty auction houses you can look at. These companies can hold auctions that showcase a variety of vintage cars made from the 1960s. In these auctions, specialized auctioneers can suggest models that could be the right one for you. Some auction houses also do specialty auctions revolving around a certain car brand, such as an auction that specializes in the buying and selling of BMWs.
Besides live auctions, there are also a number of online auction houses that you can search through. These companies give their bidders an easier time selecting through numerous vehicles all at the touch of a button. However, in an online auction, the bidder will not have the luxury of physically inspecting the vehicle right away.
There are different kinds of auctions
There is quite a number of different kinds of car auctions in the Philippines. Each kind has its own respective advantages and disadvantages. Car auctions can be a great opportunity for you to find a high-quality vehicle at a lower price. These second-hand cars can be a good deal, but should always be well-examined to find out its history. Here are two notable types of car auctions.
Public Car Auctions
Public car auctions are open for anyone to buy and sell cars in. This provides bidders with a number of options to choose from. There could be a variety of car types, brands, and models being sold. These also have different price ranges, depending on the car’s seller. This is where you could get a good deal for a second-hand car.
However, not all public car auctions are 100% reliable. Some car auctions sell repossessed or unsellable vehicles. These are polished and repainted to make the car seem aesthetically pleasing enough to bid on. This is why it is important to thoroughly check if a car is true to its description or not.
Government or Police Auctions
The cars sold at government and police auctions can vary depending on the kind of vehicles they acquire. The cars sold here have usually been impounded and failed to be picked up by their owners. These could be impounded due to illegal parking, traffic violations, and crimes.
These auctions are also good places to find unique vehicles. These auctions can sell city or county vehicles such as police cruisers, buses, and utility trucks. More often than not, these city vehicles have been used and worn down. This could be useful for bidders who own scrap yards or are in the car part trading industry.
The vehicle you are interested in could be a repossessed or impounded car
Are you on the edge when it comes to bidding on repossessed or impounded vehicles? Well, you don’t have to be anymore. These kinds of vehicles, once properly examined, can be safe to bid on and could potentially be high-quality deals. Here are a few things you need to know when thinking of buying a repossessed or impounded vehicle.
In order to purchase a vehicle, you may opt to get a car loan. There are a number of places that you can get a car loan from, all with differing payment procedures. Once the lender accepts your loan and pays for the vehicle, you will then have a set number of monthly payments. Failure to pay for the monthly car loan can give your lender the right to repossess the vehicle. These are the second-hand vehicles that can be found in public auctions.
There are a number of reasons why the previous owner of a repossessed car could have had trouble paying for their car loan. Repossession does not equate to neglect in terms of the vehicle’s upkeep. These vehicles could be in good condition once it ends up on the auction floor.
A car auction in the Philippines that is controlled by the government or the authority of the police could be selling impounded cars. Impounding is when the police seize a car from its owner for violating multiple traffic laws or for being convicted. These are also where abandoned cars are sold. These vehicles are sold in police auctions after a certain amount of time and when the owner fails to retrieve it or pay for the impounding fees.
To ensure that a vehicle is safe to bid on, one of the most important factors is to check its Vehicle Identification Number (VIN). This can let you know about the history of the vehicle and its previous owner. Similar to repossession, impounding also does not equate to the vehicle’s neglect in terms of its maintenance. There could be a number of reasons as to why the previous owner failed to retrieve their impounded car. Do your research diligently and you could land a good vehicle.
Everything is not always as it seems
As has been discussed earlier, a vehicle found in a car auction in the Philippines may not always be as it seems. Sellers will always try to renovate their vehicles in order to make them more appealing to the bidders. Do not let yourself get charmed by a vehicle’s exterior right away. Make sure you pop open the hood to check out the engine and other important car parts hidden inside. To be ensured that the items you are looking at are of good quality, only trust professional and experienced auction houses for your bidding needs.
Vehicles being sold at auctions may look pleasing to the eyes, but may actually need certain parts repaired. Take a look at the car’s history through its VIN in order to learn about how the previous owner made use of the car. Expect car parts to be worn if the owner constantly made use of the vehicle for their daily life. Make sure to find out if the seller has done any renovations or modifications on the car. Honesty is key to developing trust between seller and bidder.
Besides asking the seller detailed questions, it is also important for you to do your own research. Illegally sold vehicles may sometimes slip through the screening process of certain auction houses. Make sure they have the complete paperwork available, and research on their serial numbers as well. Make sure that all the numbers match across all forms of paperwork as well.
Some vehicles being sold are unsellable cars
What makes an unsellable car? There are different factors that can deem a car as ‘unsellable’. Here is a list of factors that you should look at in order to determine if a vehicle is unsellable.
One major factor is the failure to maintain the vehicle throughout years of use. This could include a buildup of dirt in the interior of the vehicle and the failure to fix scratches and bumps on the car’s exterior.
Large amount of miles
If the vehicle has a large number of miles on it, make sure to bring along a professional mechanic to inspect it before placing your bid. Vehicles with a large number of miles may cost you a lot of money to repair if it has not been properly maintained. If you are lucky, you could find a vehicle with a large number of miles that is also still well maintained.
The cost to renovate is higher than the cost to purchase a new car
In relation to failed maintenance, an unsellable car is one that costs more to renovate than to purchase a new car. These could be vehicles with rusted car parts or vehicles with broken and damaged areas that are far from being fully repaired. These types of vehicles may better be suited for junkyards or for traders of car parts.
Sellers may choose to keep details from you
As discussed earlier, sellers may choose to keep certain details from you. If you do not have a lot of experience at auctions, it would be best to gain more experience by attending other kinds of auctions. Observe how auctions typically run and what kind of items are considered good deals. These would lessen your susceptibility to sellers with hidden agendas. Learn how to ask the right questions, and learn what makes a good second-hand vehicle.
If you are struggling to learn things on your own, bring along a friend who is more knowledgeable about cars or even an expert. They can help you see through the different masks and facades sellers may place on their vehicles that would want you to buy it.
You will need cash or a car loan
In order to purchase a vehicle at a car auction in the Philippines, you will need to have payment options prepared. There are a number of choices you can choose from, one being payment with cash. This could be possible for second-hand cars that are cheaper in price compared to newer cars. However, the difficulty in this would be the fact that you would need to bring around a large sum of money.
If you prefer a different payment option, you could also choose to get a car loan. You can discuss the terms of your loan depending on the company that you choose to do business with. Each company has different terms when it comes to car loans. Professionals can help draft a monthly payment plan with various price ranges depending on the capabilities of your income. However, loans require you to have a good credit score. It would be difficult for a bidder to get a car loan with a bad one. Do more research to find other payment options that would be the most suitable for you.
Besides your bid, there are commission and taxes
Besides the amount of money that you have bid, take into account that buying a car in an auction also means paying for commission, taxes, titles, and registration fees. Car insurance can also be asked of you if you opted to get a car loan. These additional fees can add up to a huge cost. Make sure that you save up and prepare more than your maximum bet at the auction.
There is an influx of buyers during tax refund season
During tax refund season, a lot more people are willing to spend more than what they usually do. This causes an increase in the number of bidders as well as the amounts they are willing to bid. Take note of these months as you could end up bidding more than you expected when you are up against a number of other interested bidders. To prevent yourself from overspending during a car auction in the Philippines, set a bidding limit for yourself. This will prevent the urge for you to spend more than you can.
Take note that due to the increase of interested bidders, auctioneers may increase the car prices during tax refund season. Do your research to find the true value of a vehicle and compare it to the sale prices in multiple auction houses. If you are looking to find a cheaper investment opportunity, it would be for the best to bid for vehicles outside of this busy season.
During the pre-holiday season, there is an increase in auction inventories
Besides tax return season, the season before the holidays also sees an influx of auctioneers and sellers at a car auction in the Philippines. In order to gather more funds for holiday shopping, a number of people will choose to sell their unused second-hand cars at auction houses. These greatly increase the inventories in car auctions and give bidders more options to choose from.
This could also be good news for people looking to purchase a car as a Christmas gift. They can choose from vehicles with different makes, types, and brands. The prices of these vehicles will also have a wide range that could surely fit into your budget.
A car auction in the Philippines can be overwhelming if you come in unprepared. Make sure that you do your research well regarding vehicles that you are interested in beforehand as well as the different auction sites around your area. Do not be afraid to ask the seller multiple questions. The more honest they are, the more ensured you are of the vehicle’s pros and cons.
Make sure to also thoroughly inspect a vehicle, as you can start to think of the cost needed for any renovations or tune-ups. These steps will make you a more intelligent bidder and will increase the chances of you getting the most out of your money’s worth.