Auction APB

If you want to have a car but do not want to put a lot of strain on your finances, why not buy a pre-owned one from auto auctions. While it is true that buying from auto auctions carries certain risks like ending up with lemons, this is not entirely unavoidable. Spending some time to research on the car you wish to buy and common sense will allow you to home in on great finds.

How auto auctions work

Cars which are sold at auction are sourced from private sellers, used-car dealerships, and manufacture-affiliated dealers. Some of these cars have a reserve value which will be the lowest figure the seller will accept, and thus the auctioneer cannot sell below this value. A sale catalogue is usually made available to buyers so they can decide which ones to bid on. As with any auction, the car is given to the one with the highest bid.

One of the most popular ways of getting pre-owned vehicles is through Japanese car auction. This is because those sold at Japan’s car auctions tend to have lower mileage and are relatively newer compared to those sold in other countries. Private buyers cannot participate in Japan’s car auctions though as this activity is reserved to Japan-based dealers holding auction membership. Most of these dealers have websites where you can select a car and place a proxy bid. At the actual auction date, the dealer’s representative will bid on your behalf up to the limit you have determined. If you are the highest bidder, it is your obligation to pay off the balance so the purchased vehicle can be shipped to you.

Evaluating a vehicle at auctions

To the risk-averse, not being able to test drive a car prior to purchase can be truly discouraging. Then again, those who buy at auctions assert that there are other effective ways of evaluating a car’s condition, for instance, by reading the inspection report.

Picking a dealership or exporter

If buying from a Japan car auctionappeals to you, make sure to get a dealer that can communicate in English well. Aside from that, you should also check if their fees are reasonable, and that they can guarantee that there are no hidden fees. Also check if they are a member of JUMVEA, the industry’s watchdog. Compare at least three exporters so you can home in on the best one. Do not forget though that fees, while a criterion in selecting which company to work with, is not the only one, nor the most important. Evaluate for promptness and quality of service before committing to one.

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