Transporting cars a couple miles to transporting it nationwide or coast to coast has always been a big dilemma for first time shippers. Shipping cars from residence to residence has always been an easier hassle as less to no paperwork is needed, when shipping to or from dealerships, most take care of the paperwork for the customer; however nowadays with more and more cars being shipped from auctions, the dilemma for customers has become even bigger. We have experienced many auction scenarios in the past year and have noticed many customers are not aware of a few simple steps that are required in order to enjoy a successful transportation; therefore, we have decided to go over the main points of shipping a car when bought at an auction.
The beginning of Auto Auction
First off we must understand how an auction works and what types of cars we can find here. With the ups and downs of economy, car buyers have found a new way to purchase vehicles at the price they set. Car auctioning started running as early as 1948 and it became a popular way to sell mostly used cars under an auction system. This was a great way to help remarketers sell cars and avoid big sales drops in their boards. Little by little this system is gaining popularity although it is mostly controlled by used car dealerships. Many countries use this system to get rid of second-hand cars; however in the United States most auctions are closed as only dealers can access them and keep full disclosure while doing so.
Besides closed auctions for dealers, the United States also offers open auctions for the public. These are mainly used as a dumpster for repossessed cars, aging cars from rental companies, off-lease returns; trade-ins, or even cars seized by government agencies such as the IRS, DEA and FBI. Some insurance companies also submit their totaled cars to feed the salvage car market. Although used cars are the main focus of the market, new cars are also included in the auctions, especially when dealers want to get rid of unsold inventory.
Other countries like Japan also use the auction method to sell cars; actually the most common way to sell vehicles in Japan is trough auctions. Unlike the United States, Japan offers open car auctions, however only car dealers can become members of the auction and play on the biding session. In order for individuals to sell or buy cars in an auction, they must submit them through these authorized members; this is done primarily to keep order during the auction. In Japan only professionals to biding and their rules are allowed to be part of the auction, however customers have complete access to the vehicles information.
What can I find at an Auction?
The word auction is normally a synonym of used or second-hand for many people, which are not entirely far from the truth, however “new”, are also becoming part of this great method of selling for the car industry. Here’s a quick list of what you can find selling at an auction:
Off Lease Vehicles: these vehicles are very common and popular and are one of the most submitted cars from dealers. These vehicles are returned after the lease term is over, they have a certain mileage limit in order to be submitted and require regular maintenance.
Off-rental: these vehicles are cars submitted mainly by rental companies, after a year of use, these companies submit their used fleets for auction in order to replace for new ones. These cars are usually in very good state as rental companies keep close eyes to their maintenance and well being for their customers.
Company or Fleet Cars: these cars are submitted by companies and are also leased vehicles. The variety of fleet cars is high as it can be from the luxury sedan to cargo trucks. The state of the vehicles also vary as a luxury sedan that is driven for company’s executive for meetings will be in a better shape than the company cargo truck that is used and mistreated with everyday use.
Repossessed: repos are also one of the most common types of cars you will find at auctions. Finance companies and dealers recollect these cars from unpaid accts holders and submit them to storage. If cars are not paid for and claimed after a certain period, they’re submitted to auctions for sell.
Trade-ins: these are vehicles that customers trade in for new ones at the dealership they go to. Sometimes dealers will find themselves with cars that don’t meet their requirements either because they’re too old, mileage is over limits, or car has too many damages, and they submit these cars to auctions to make extra income. Sometime modifications made after market modifications can help raise the value for the car and dealers get an extra income.
Salvage: these cars mainly come in from insurance companies. When cars have been in accidents and have been determined as total loss, they’re submitted to shops to rebuild and re-sell at auctions. Sometimes cars are torn apart and the useful and undamaged parts are sold separately.
New cars: when new inventory comes in and previous year’s cars are still on sale, dealers are forced to submit cars into auction to sell in order to make room for new inventory. They are sold in lower prices than a dealer can ever offer a customer, but at least this way they can make up for losses.
Once I win a car, how do I ship it?
Most likely the auction you’re bidding on is nowhere near where you live as is the case of many people, and once the auction ends and the car is paid for, you need the car transported to you or wherever you need it. There is no need to worry, the car transport industry accommodates to any need, and with car auction popularity growing bigger by the hour, car transportation from auctions to you is now in high demand. There are some things you need to take care of however, to make sure you enjoy a hassle free experience with no extra fees due to overseen details.
When you buy a car off from an auction, you need to pay the price it went for, plus taxes and storage fees. All this paperwork is taken care by either the person bidding for you at the auction or yourself with personnel form the auction. Once it has been paid off, auctions usually give a period of time where you can keep the car in storage free of charge or at a minimum rate until you arrange pickup or transportation. Make sure this is arranged before hand and paid in full before driver is there to pick up the car. These fees many cases are not greater than $50.00 and driver might agree to pay and later invoice you upon delivery; however this may not always be the case. Drivers are not responsible for these fees, and if he is not willing to cover this bill in order to take car, he is in all his right to decline taking the car and charge you cancellation fees. Make sure this arranged before hand to avoid misunderstandings later on.
Another important thing when transporting a car from an auction is to provide the lot number where the car is located. VIN number and color are optional, however if available, it’s better to provide them. Many auctions will also provide buyer a receipt that must be presented by driver in order to take car, if this is the case it is extremely important that you provide this receipt and any other document to your transport booking agent so they can provide the driver with this documentation. Delays due to missing paperwork can cause extra unnecessary fees. Remember that just like you have schedules to stick to, drivers have schedules they have to stick to as well in order to provide a safe and timely delivery.
Although most times you might not have a contact person at the auction for the driver to contact upon pickup in case of any emergency, make sure you are available the day of pickup in case driver needs assistance. If issue is not resolved, driver will have to leave car behind and cancellation and rescheduling fees will incur, not mentioning an extra day of storage at your responsibility.
Buying a car from an auction is a very common buying and selling channel for the car industry nowadays, if using this method, make sure you take full advantage of its benefits and foresee all the transport details to avoid any inconvenience.
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Transporting Cars from Auctions
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