Selling a car can be a big headache. Trade-in doesn’t provide nearly as much return on value as you’d like while trying to sell it directly to someone can take a ton of effort, advertising, and wasted time on potential buyers that might not come through. Fortunately, there’s another option: selling your vehicle at a car auction. In this guide, Caravan Auto Transport dives into the topic of selling at an auction and the logistics involved with shipping your auto to said auction.
Selling a Vehicle at a Car Auction
There’s a misconception about car auctions. Though people typically associate them with either high-end sales – Ferraris, Lambos, Bentleys, and other marquee makes – or think they are reserved for large organizations that are unloading a high quantity of used autos, the fact is a car auction can be an efficient (and lucrative) way to sell your personal vehicle.
Benefits of a Car Auction
The main advantage of an auction? You can get full value for your car! From a minivan to a luxury sedan, an auction can offer a list of benefits:
- Don’t have to deal with potential buyers directly
- Get full value for your auto
- Don’t have to lose money on a trade-in
- No advertising headaches associated with a private sale
- Seamless selling experience
Also, an auction house will provide much more visibility, attracting dozens of potential buyers (if not more). It’s a much more hassle-free way to sell your ride!
Steps to Selling a Vehicle at Auction
So, your next question must be, how do I go about selling my car at a physical auction?
1. Research Auction Houses
The first step is to research auction houses. You’ll want to figure out which one specializes in the sale of your particular auto and is best for your needs. Also, location is obviously a big factor. There are two types of auctions: live auction and internet auction. Internet auctions involve shipping the car directly to the buyer. We’ll focus on live auctions in this article.
2. Narrow the List
Once you’ve researched auction houses (either online and/or through a friend or acquaintance knowledgeable about auctions), you’ll want to contact your shortlist of houses. Next, decide which one to work with. You’ll need to arrange to have your vehicle shipped to the auction so that they can have their technicians look it over and provide an appraisal.
3. Set a Reserve Price
Next, you’ll want to set a reserve price. This is the lowest amount your auto can be sold for at auction. Without it, you’ll be at risk of basically giving the car away. Setting a reserve price involves finding out the market value of your used vehicle. Remember, be reasonable. Don’t set your reserve price too high or too low. Make sure to ask the auctioneer for advice. They take a cut of the final bid and, therefore, also want to maximize the sales price.
Additionally, don’t try to hide any issues or damage. Doing so can come back to bite you. Whether dealing with an online auction or live auction, potential buyers know that these vehicles aren’t in perfect condition. Always be completely honest.
4. Get Ready for the Auction
Once the auction house has received your vehicle, they will inspect/appraise it and place it in their lot. The auction house will assign it an auction number and then advertise accordingly. Potential buyers will then get the opportunity to view the vehicle at the lot. From there, your car will be presented in an auction room where potential buyers will bid against each other.
If the reserve price is met or exceeded, the highest bidder wins. If the reserve price is not met, you will have the opportunity to negotiate with the highest bidder. You have the option of not accepting it in this situation. On the other hand, bidders are contractually obligated and cannot renege on a sales commitment. If the sale falls through, you can decide whether to have the car be entered in a future auction or take it back.
5. Transfer the Title
A couple of things to also keep in mind: establishment of ownership and tile transfer. Prior to sale, you’ll need to show proof of ownership. Also, once the total cost of the auction is settled (auction fees, shipping, and user fees), you’ll be required to transfer the title to the new owner. Once transferred and the vehicle is shipped and received, the sale is complete.
Circumventing having to deal with endless calls, meetups, and the potential danger of strangers coming to your home is worth considering selling your car at auction. Not to mention, the big letdown of a low-amount trade-in deal. An auction allows you to put your car in the hands of professionals that can get top dollar for your ride. But, of course, you’ll need to get your vehicle to the auction in order to seal the deal. Below, you’ll find steps on exactly how to do that.
Shipping a Car to Auction
Okay, so now that you have a better understanding of how a car auction works, let’s take a look at the actual process of shipping your vehicle to auction.
Cost Factors
We highly recommend enclosed transport for your auction vehicle. Open transport is cheaper, but if you’re looking to avoid any potential damage (especially if the vehicle is in pristine condition or a luxury or classic car), covered and contained transit is crucial.
When choosing a car shipping company, there are several factors to consider:
- Distance: This one makes sense – the farther it needs to travel, the higher the cost. However, a longer distance can drive down the cost per mile.
- Type and size: A bigger vehicle – SUV, truck, van – can cost more to transport.
- Condition: An inoperable car typically costs more than one that runs.
- Season: Summer (and winter) tend to be the most expensive shipping seasons.
- Insurance: You will probably require additional insurance protection. Be sure to go with a company that provides comprehensive coverage.
Preparation and Options
You have several choices when it comes to shipping:
- Tow it yourself
- Have someone drive it to auction
- Ship by train
- Open carrier
- Closed carrier
Each option provides its own pros and cons, but for the sake of brevity, we’ll focus on hiring an enclosed service. This provides the best protection for your auction vehicle.
1. Request auto shipping quotes
Caravan Auto Transport provides free estimates from fully vetted, licensed, and insured auto transport professionals.
2. Schedule the shipment
Make sure that your shipment will arrive in a timely manner. Enclosed shipping can take more time, so keep that in mind.
3. Prepare the vehicle for shipment
Clean your vehicle. Make sure that you remove anything of importance. Then, take pictures. This provides documentation and proof of the condition including any blemishes or damage that the car already has.
4. Drop it off at the pick-up location
Drive the car to a designated terminal. You also can opt for door-to-door delivery. Your transporter can either pick it up at your home or at a parking lot close to your place. This is a highly convenient option.
5. Track its progress
Transit can take up to two weeks in some cases. Ask your shipping company how you can track your car’s location during transport.
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Whatever your needs, Caravan Auto Transport is here to help. We make the process super simple, from the first contact to final dropoff, with free quotes. Click here to get started and see how easy it is to transport your vehicle, from the family van to an exotic supercar, via Caravan!