Why So Many People Flock To Used Car Auctions
There are many reasons to go to a used car auction, not the least of which is the great bargain you can get on just about any car. It's not uncommon to find luxury and sometimes unique cars at a used car auction either. One time, I found a very cute biodiesel converted Gremlin at a used car auction. Granted it went for a very high price, but it was definitely amusing to watch.
You might want just a little something to go from point A to point B, but that isn't the only reason people go to a used car auction. You will find just as many makes and models of people as you will cars at a used car auction, from dealers, to luxury investors, to just your average Joe Schmo.
Making ends meet
Some people make a business out of flipping the cars they get at a used car auction, sometimes fetching twice or three times what they paid. Depending on the laws in your state, you can probably sell up to five cars per year without a dealer's license. With the cost of oil, and thus heating bills going through the roof, selling cars from a used car auction can definitely help you make it through those tough winter months.
Most of the time, they don't ever touch anything on the car. Literally, all they do is get a car at a used car auction, and then list it on sites like Craig's List or eBay after doing a little investigation on the value of the car through BlueBook.com. It's a really simple way to make a couple extra bucks when you are in a tight spot.
Some people however, pick up cars at a used car auction for the explicit purpose of "suping" it up and modifying the car for racing - or just to look cool. Sometimes they sell the car, sometimes they don't. It all depends on personal preference, but either way, it's definitely much cheaper to get cars from a used car auction for this purpose than anywhere else.
A word of caution
Nevertheless, getting a car at a used car auction is a completely blind purchase. Most of the cars are not guaranteed at all, and are sold on a "as seen, as is" basis. However, from time to time you will find cars with a limited warranty, sometimes from the manufacturer, sometimes from the auction house itself. Although, you can definitely expect these cars to go for top dollar.
When you're going for a car at a used car auction, be sure to leave some money aside for repairs and maintenance. Don't tap out all your resources in order to get a car, especially if it will be your only mode of transportation. While a used car auction is an excellent resource for cars at bargain prices, you definitely get what you pay for.
Although, if you do end up with a lemon, you can list the car on some kind of classifieds and try to sell it to recoup at least some of your losses. Additionally, if you break down on the side of the road in some remote location - too far away for towing to be worth keeping the car - there are some companies that will pay you to take away the car so it's not an entire loss. They will even take off the plates and have them mailed to you.
