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How to Win at Car Auctions

Monday, 15 October 2018 | Mike Leano

Winning at car auctions, online or otherwise, isn't just a matter of having the highest bid. If so, the only thing you need to do is show up with more funds than the other participants. And if that were the case, the practice would've been extinct because everyone would simply look at more inexpensive means to buy a car.

But car auctions do work for buyers and sellers alike - especially for buyers - if they know what they're doing and play their cards right. Aside from making the highest bid, buyers can "win" by:

  1. Not spending as much.
  2. Getting a car that's as good as advertised.

So if you're thinking of buying a car through an auction, here are a few suggestions on how to go about it the properly.

Read the description closely

The catalogue or description provided by the auctioneer will be your first (and in some cases, only) source of information about the vehicle so make sure you thoroughly understand it. You can also get the car's specs online (e.g. fuel type, engine capacity), but important details specific to the vehicle being auctioned will be included in the description.

This information may include (but are not limited to) the following:

  • Any minor scratches and dents, if any.
  • Condition of the tyres.
  • Total distance travelled by the vehicle.
  • Registration details.
  • Any other outstanding issues.

From these details, you can already glean quite a bit about the car. For instance, if the description says the vehicle's traction control light is on, you may have need to clean/repair its dirty/faulty wheel speed sensor/s.

Likewise, having a lot of mileage (yearly and/or total) could mean a car has a bit more wear and tear, which could develop into issues sooner rather than later.

Do your research beforehand

Once you have some more information about the car you're eyeing, it's time to dig deeper. There are at least two vital details you can (and should) look into:

The value of the car
You wouldn't want to bid more than what the car is worth. To determine that limit, find out how much it's supposed to cost through websites like RedBook, CarsGuide or Kelley Blue Book.

The vehicle identification number
A car's vehicle identification number (or VIN) is a unique 17-digit alphanumeric code that's used to identify individual vehicles. You can use the VIN to look into things like a car's manufacturing history, if it's still being used as loan collateral, or if it was ever stolen.

Just be prepared to spend a little for this service. Websites like Equifax and CarFacts charge a fee ranging from $29 to $37. The Australian Financial Security Authority also offers a $2 service called a Register of Encumbered Vehicles check, which lets you search by VIN or chassis number.

Bring a mechanic along when you inspect

Unless you know your way under the hood, you should bring a mechanic with you when (not if, when) you inspect the car you want to bid on. This will be an additional expense but it's absolutely necessary. Why?

Sure, you can you inspect it by yourself and even come prepared with a checklist, but if your knowledge of cars is only at a layman's level, you will likely miss some details - and sometimes, that's what spells the difference between a good or bad purchase.

Having a mechanic along, on the other hand, means you'll know if the vehicle has any issues, and whether it's worth the purchase.

Set some funds for car repairs

Because the cars sold at auctions are typically pre-owned, there's always a chance that they already have existing issues. And this could be anything: minor dings, a faulty alternator, or even something more serious like a misfiring engine. So make sure you allot some funds for repairs, just in case.


There's also the possibility that you might have to pay for towing as well, should you decide to buy a car despite its problems.

Use ALLBIDS's maximum bid feature

To stay within your budget, use our maximum bid feature. Here's how it works:

  1. You enter the highest amount you're willing to pay for the car. Our system will keep this amount secret and automatically bid on your behalf, but only enough to beat the other bidder.
  2. Whenever other potential buyers outbid you, our system will keep bidding on your behalf until your maximum bid amount is reached.
  3. If you're the highest bidder at the end of the auction, you get the car. Of course, you'll pay only the lowest possible winning bid, and not necessarily your maximum bid.

You can continue past your maximum bid, but just know that you're already spending more than you planned - and that's not a good idea.

Eliminate competitors with a much higher bid

As a tactic, you can raise your bid by a significant amount to discourage other potential buyers, show them you're serious about the car, and bring the vehicle's price closer to a final bid value. You can do this with our instant bid feature, which immediately applies the full amount you enter.

Note that your instant bid might not necessarily be higher than the other buyer's maximum bid.

For example, if a car is currently going for $1,000 in an auction and you enter an instant bid of $2,000, the current bid will immediately go up to $2,000. But if another bidder has a higher maximum bid than your $2,000 current bid, you won't win the auction. Just remember that your instant bid needs to be higher than the current maximum bid.

Feel free to contact us if you want to know more about how instant bid and maximum bid works.

Look for car auctions with less competition

Here's a little secret: because there are so many car auctions out there, there's always a chance that a few may escape notice. You'll know you've stumbled into an auction that slipped through the cracks when you bid and there's hardly any competition, even when the auction is about to end.

Does this mean the car's a lemon or nobody wants it? Not at all. Quality cars do get overlooked. Of course, due diligence still falls on you.

Play it smart

Borrowing from the suggestions we've previously shared, here are a few additional tips on how to do better at online auctions:

  • Look for misspellings in the auction listing. These may result in lower traffic, which means it's less competitive, and results in fewer and lower bids.
  • See when the auction ends. Those that end during quiet hours could result in fewer competing bids.
  • Look for shorter auctions. Longer ones provide others more chances to outbid you, which may also lead to a higher winning bid.
  • Pay close attention during the closing minutes. That's when the serious buyers make their final push, so expect more bids during this time.

Absolute confidence

ALLBIDS runs many car auctions on a daily basis. More importantly, we provide layers of protection on every auction, which means you can bid with absolute confidence. So find the car that fits your needs today.

You can also sell your car through ALLBIDS minus the hassle. Simply contact us via phone, chat or email for more information.