Auctions can be a very cheap way to purchase a used vehicle. But it could also cost you a fortune, so firstly decide if this is the right avenue for you.

Proceed with caution

Many are ex-government cars, but not all will be in the same condition, and you won’t get a statutory warranty. You don’t get the luxury of time with auctions as you do with cars in a traditional yard – test drives are unavailable and there is less time to check out a car’s mechanical history.

If an auctioneer is selling a private car as opposed to a government or corporate fleet, there is a chance it could be stolen.

The good news? With the right preparation you could save up to 25 per cent on the price of a car. You can find a car auction house near you in the Yellow Pages. 

Do your research

Decide on the type of vehicle you are interested in and do a little digging. Find out what the market price is for that make and model and research recent auction prices. See if you can test drive similar models at a used car card or through a private sale to make sure this is the right car for you and your needs.

The mechanical nitty gritty

You should only consider buying cars that have a consistent and regular service history. This will go a long way to reducing the risk of inherent issues with the car’s engine, brakes and tyres – no one likes a hidden surprise that could unexpectedly cost thousands.

Don’t know a mechanic? Make friends with one fast and take them to the auction with you. You can read our guide to finding a great mechanic, here.  Unlike those with an untrained eye, a good mechanic will be able to spot potential trouble and steer you clear of bidding on a lemon. Search for a mechanic near you, here.

Don’t fall in love

It’s easier said than done, especially when you get your heart set on a little beauty. But no car is worth selling your grandmother for. Set a strict budget before the auction and don’t budge – resist the temptation to over-spend in the heat of the moment just because you want it. Odds are there will be a similar car up for sale next week anyway. If you’re a nervous bidder, rope in a friend to do it for you – they have no emotional investment in the purchase and are more likely to pull out once the bidding surpasses your limit.

Auctions can be great for those looking for a bargain and, as long as you are prepared and acknowledge the risks, it can be a pretty rewarding feeling when the auctioneer points and you and says “SOLD!”