Consider an Auto Auction for a Great Deal on a Used Car [Saving Money]

By Alan Henry Oct 11, 2011 5:00 AM 26,617 67

Contrary to popular culture, auto auctions aren't all broken-down cars and police impounds: in reality, they're often leased vehicles that have been returned to dealers and decommissioned rental fleets. If you do your homework, stick to your guns, and get a proper inspection at the auction, you can walk away with a remarkable deal.

Over at Get Rich Slowly, reader Jacq shared her experience with buying a car at auction, and some of the most important things to remember when doing so. Most of them are common sense, like doing your homework on the cars and the auctions, and making sure to stick to your guns on price (regardless of how enthusiastic an auction crowd may be.) Some of the biggest takeaways from the piece are that most auto auctions allow you to get an on-site inspection of the vehicle before you bid, and you can find out the makes, models, and conditions of the vehicles on the block long before the bidding begins. This way you don't have to start bidding on something the first time you see it, and you have plenty of time to consider your purchase before bidding on it.

Just by doing her homework, Jacq saved thousands on a used car, well below Blue Book value for it. At the same time, she lists a number of other vehicles sold at the same auction for well over their value, so your mileage may vary—especially depending on your willpower and ability to stick to your spending limits.

How To Buy a Car at Auction | Get Rich Slowly

You can reach Alan Henry, the author of this post, at alan@lifehacker.com, or better yet, follow him on Twitter or Google+. Related Stories