Are Auto Auctions a Good Deal?
Are Auto Auctions a Good Deal?
How to Get the Best Deal on a Used Car
In Michigan, the question of dealership or auto auction for a used car is common. But maybe not as common as it should be. Whatever your assumptions, which is the better deal?
Pontiac Public Auto Auction can make a serious case for saving you money.
Used car deals depend on a few things. 5 things to be exact.
1. Price
Price is king when it comes to used cars in Michigan. The Kelley Blue Book’s Fair Market Range is a good way to check the valuation of a car that you’re interested in. It helps set your budget.
You can also look around at how dealerships are pricing certain makes and models. Then it’s only a matter of how much an auction can save you.
At Pontiac Auto Auction, bids start as low as $100 and can stay low, depending on the competition, landing you, potentially, a fantastic deal.
When dealers buy cars, they buy wholesale and save money. Depending on much they put into the car, they attempt to recoup and profit on those cars. Markups can range from 20 to 60% or more.
Let’s take a hypothetical. A 2014 Jeep Grand Cherokee in good condition with 120,000 miles might be valued at $9-10,000. The dealer likely paid far less, 20% or more. Then the dealer puts some money into the cars and marks up the price, 30, 40, even 50%.
That 2014 Jeep Grand Cherokee might have a price tag of $13,500 at your local dealer here in Michigan. But at Pontiac Auto Auction, you might only pay $10,000 or $8,000 or less! Those are potential savings of at least 20%.
Savvy buyers can sometimes score cars for half of what they’d pay at a dealer.
2. Condition of the Car
Price isn’t everything. Just because you paid less doesn’t mean you scored a great deal. You need to pay what the car is worth or less. That’s the making of a deal.
Many used cars may have been in accidents, have high mileage, or require repairs.
Take a look at our vehicle inventory. You’ll find that every car or truck comes with a condition report giving you all the details. Those details help you determine what the car is worth and therefore how much you will pay.
And remember, inspect any vehicle you’re interested in. No exceptions.
A dealer may try to upsell you. That doesn’t happen at auction. A dealer may hide something or lower the price and still overvalue the car.
Not that all dealers are shady. Don’t take this the wrong way. But at our Pontiac auction, we’re upfront about everything, and we leave it to you, the bidder, and the competition to decide how much a car is worth.
3. Competition
Perhaps you don’t want to compete with others. Maybe you just want to see a good price and go for it. Bidding can be stressful and it takes more effort.
But if you did your homework, prepared a budget, know the estimated value of the car, factoring in its condition and mileage, and are OK with losing certain bids, then you will have the discipline and perseverance to find the right car for you.
And ask any bidder, you may not win all the time, but you WILL eventually find a great car at a great price. Patience.
Our bid increments are $100. It can happen fast, but we encourage you to open an account, and please ask us any questions about the process. 😀
4. Fees
Here at Pontiac Auto Auction, our fees are on a sliding scale based on the selling price of the vehicle. Our fees are posted on our website. You can see them once you are logged in. Depending on where you live, there may be additional fees for tax, tags, and other additional fees.
5. Used Car Selection
Many auto auctions usually have a limited selection of used cars. As I write this, there are 103 vehicles on the lot. That will vary.
You will certainly have more options if you go to a big dealership. But even our smaller operation has vehicles from over 30 carmakers.
A good deal is not hard to find at Pontiac Auto Auction. With amazing savings, honesty, and new inventory regularly arriving at the lot, our public auction should definitely be on your list of where to buy your next used car.
Come see us! 618 EAST WALTON BLVD., PONTIAC, MICHIGAN 48340