How to Buy a Car at Auction

You've attended a few classic car auctions and are ready to experience what it's like to buy a car at auction.

Auctions are a great place to buy, and for several reasons:

First, you can often find cars at auctions that are not available anywhere else. Special cars, historic cars, and many prestigious collector cars are sold at auctions rather than on the regular private market or at top collector car dealers.

Second, auctions offer a greater breadth and depth of classic cars than searching websites because many cars are offered at the same time.

The third reason to buy at auction is that it is great fun. The process of bidding and hoping to be the eventual winner is as exciting as it is nerve-wracking.

For example, a 1977 Porsche Euro Carrera at an auction where muscle cars are the main attraction.

However, there are a few things to consider before buying at auction, which can be a successful adventure if you do your homework, or a disaster if you don't.

The following is a list of tips to consider when buying at auction.

Before you bid:

1. First and foremost, if you have never attended a classic car auction before, we do not recommend buying at an auction. First-time auction attendees have a lot to know and tend to get excited and bid more than the car is worth.

2. Pre-register for the auction. Usually, information and various forms can be obtained from the auction company's website. In addition to purchasing a bidder number, the bidder must provide proof of ability to pay for the purchase. Pre-registration saves time and in some cases money (some auction companies charge a reduced fee for bidder pre-registration). Pre-registration also gives you more time to consider the car or cars you are considering instead of waiting in long registration lines at the auction site.

3. Make sure the auction is the right place to buy the car you are considering If you are looking for an entry-level classic car such as an MGB or Porsche 944, buying at auction is not the place to find the best car at the best price More likely than not, it is not. Consider advertising on ClassiccCars.com or other classifieds sites if you are looking for a more common car, as more common classic cars can sell for much more than they are worth at classic car auctions. As a rule of thumb, cars under $20,000 are generally not suitable for buying at auction.

4. If you are considering buying a car at auction, be sure to do your research on the car before the auction. Go to the auction website and carefully read every detail of the description. While you are reading, look at what is not written as much as what is written in the description. If the catalog does not clearly state that the car is a matching-numbers car, it is most likely not a matching-numbers car. However, this is not always the case. Often, people assume that a car is not a matching-numbers example because they failed to do their research beforehand, and such a car can be a good deal.

5. Do further research on the car, not just the auction company's description. For example, if you are looking at an Alfa Romeo racing car and the description is short, go to the Alfa community to find out the rest of the story. My friend Lars saw a 1957 Alfa Giulietta Spider race car at the RM auction a few years ago. This data was nowhere in the description and he ended up stealing it at auction for less than half of its value.

6. define the value of the car you are considering buying, using online tools such as the Hagerty price guide and Sports Car Market magazine's Platinum Database, while searching for similar model cars for sale on ClassicCars. Search. com, eBay, and Craigslist. After determining the value of the car, establish the maximum price you are willing to pay. Don't forget to account for auction fees, sales tax, shipping costs, and the cost of attending the auction.

During the auction

1. When you go to the auction, take a car collector friend with you. Ask that person to look at the car and point out any flaws.

2. If you know an expert on a particular car, have that person come to the auction to examine the car. Having an expert independent of the auction company examine the car can save you time and grief later.

3. Do not fall in love with a car at first sight. Take a good look at the car you are thinking of buying. Look at everything. That means getting down on your hands and knees and looking at the underside.

4. find an expert at the auction company to show you the details of the car, including opening the doors, hood, and trunk. It is bad manners to do this without an expert present. You will see others doing this, but be the one to ask for assistance. That way, you will not be the one hurting the car.

5. Find out from the specialist if the owner is present, and if so, talk to them about the car. The key here is to listen rather than talk. The owner will often disclose more information by simply asking you to talk about the car. You ask short questions; the owner answers at length. While you may feel uncomfortable asking hard questions about what you and your friends saw, it is perfectly acceptable to ask if the car has ever been bumped or if the color is correct. Remember, this is an auction, not a car show. You are the buyer and the owner is effectively the car salesman.

6. Ask the auction company specialist if they have documentation on the car you are considering. Often there is a file on the car that will give you more information than the catalog description. Often there is information in the file that should have been in the description, but was forgotten or not seen. Such information can greatly affect the value of the car and often works to your advantage.

7. During the bidding process, do not get excited and become the first bidder for that car. Bid only after the initial excitement has cooled. Remember that it is not the first bidder who buys the car, but the last bidder.

8. While bidding, ask a friend you brought along to give you an idea of who you are bidding against. This way you can read the room and rival cars.

9. Finally, have transportation available ahead of time to bring the car home. Out-of-town auctions charge local sales tax on cars that are picked up by the owner without a transporter, so you may end up paying double sales tax. As strange as it sounds, some people have done this by mistake.

10. Remember that if you are the winning bidder, you will be charged a buyer's fee of about 10% on the high bid amount. However, if you purchased the item at or below the base price, be sure to celebrate. You may think that buying at auction is complicated, and you are right. However, the process of buying a car at auction is much the same as buying a car from a dealer or from an individual.

If you take these steps and do your homework, buying at auction can be a fun and rewarding experience.

This article, written by Andy Reed, originally appeared on ClassicCars.com, an editorial partner of Motor Authority.