Even before the pandemic, car auctions were already seen as an effective way to buy a vehicle at an affordable and truly advantageous price. In fact, many people make a living buying and selling cars. selling vehicles from auctionsThis is possible, provided certain precautions are taken.

One important thing to know about vehicle auctions is that they are completely legal, and the vehicles traded there can both be sold and traded. 

If you're thinking of buying a vehicle for a price well below market value to use as your own car, or even to resell, know that an auction is a great alternative for you. 

However, to close a good deal, you need to follow some important rules! 

As always, our goal here is to provide you with the best information about vehicles and various types of business involving automobiles. 

If you're looking for reliable information about car auctions, you've come to the right place. To find out how to buy a car through auctions, you should continue reading today! 

Car auctions, whether physical or virtual, are a great way to find excellent deals. 

The supply of vehicles repossessed by banks, finance companies, and insurance companies and put up for sale is growing steadily. 

But to succeed in this world, you need to pay attention. Check out these golden tips from the experts at Senhor Carros to succeed in an automotive auction. 

The first tip before venturing into auctions is to familiarize yourself with them through what we call a field visit. 

Our advice is simple: start by attending a car auction only as a spectator. 

This is a great way to get used to the jargon and dynamics involved in this type of deal. 

Therefore, when you're not even waiting, you'll already be ready to start bidding and consequently win good vehicles. Don't skip steps. 

The auction notice is simply the document containing all the information about the auction. It includes all the rules, fees, vehicle condition, and much more.

You need to be very careful about hidden costs in the tender. It's common to think a vehicle is cheap, but then realize there was a large amount in fines that you didn't notice. 

Therefore, our advice here is this: Read and reread the auction notice before entering the auction. 

One important point about auctions is that, even though many are conducted officially, it's possible to see the vehicle in person before the hammer falls.

The tip here is simple and straightforward: See the vehicle in person before making an offer!

Only by seeing the vehicle in person will it be possible to confirm its true state of preservation. 

It is during the inspection visit that items that may present problems are analyzed. 

Ideally, you should check if the doors are aligned, the paint color, which indicates if the car has been repainted (a sign of accidents), and of course, the engine's functionality. 

The vehicle cannot be started during the inspection; this is a rule that many people are unaware of. 

Therefore, it's necessary to pay attention to the smallest details. That's why it's important to take a trusted mechanic with you. 

Ideally, you should take a mechanic who understands car bodies. At a glance, they'll be able to assess the situation and find a wide variety of problems, and will certainly get you out of a lot of trouble. 

You'll rarely find a vehicle in perfect condition at a car auction. 

The inspection serves precisely to help you analyze and evaluate what will be needed to get the vehicle in good working order, whether for your own use or for sale. 

This tip is a must for anyone who wants to succeed in a vehicle auction. 

Buying a vehicle at auction in another state is much more expensive. This is because the auctioneer usually only delivers the vehicle with the auction receipt. 

This means you will have to wait a few days to obtain the Vehicle Registration and Licensing Certificate – which is the document that allows the vehicle to be driven. 

In other words, you'll need to pay for a tow truck to take the car home. In addition, you also need to consider the costs of traveling to and from the auctioneer.

After evaluating and setting a vehicle as a purchase goal, define a price limit that is worth paying for the car.

Stop bidding when the target is reached. Avoid being greedy and be patient. Although there are many opportunities at a car auction, it's common not to buy anything. 

Although vehicles sold at auctions are up to 50% cheaper than the FIPE table price, those who buy them will hardly be able to resell a car bought at auction for the table price.

Automobiles purchased at auctions They are usually resold for values between 5% and 10%, based on the values shown in the table below. 

If you think of auctions as a business, be aware that after deducting expenses, the profit margin on an auction car is around 10% to 20%. Therefore: be realistic!

Something important to know about car auctions is that not all auctions are the same, and there are some that should be avoided.

In this case, legal issues and insurance company problems are the most problematic for anyone buying a vehicle. 

Judicial auctions, as the name suggests, are related to legal proceedings. Therefore, the vehicle owner can file an injunction and disrupt the entire regularization process. 

In insurance company auctions, the vehicles are usually salvaged, meaning they have been involved in some type of accident, which makes their registration more difficult. 

So, our advice is this: stay away from these types of auctions. 

Vehicles at auctions held by finance companies or fleet owners are easier to register and are usually in better condition. 

Vehicles from finance companies are those belonging to people who were unable to pay their loan and returned the car to the bank or finance company. 

Fleet cars, on the other hand, are those belonging to companies or rental agencies. 

It is not permitted to cancel a bid in a public auction, and this is stated in the auction rules!

If you purchase the vehicle and then decide to cancel the purchase, you will need to pay some fines and fees, such as the auction service fee, the auctioneer's fee (5%), administrative fees, and storage time.

Therefore, if you're not sure you really want to buy the vehicle, resist the urge and don't make any offers. 

Having your bid accepted is only half the battle. 

Preparing to retrieve the vehicle is just as important as participating in the auction. 

Most of the time the vehicle is out of fuel, has a dead battery, or cannot be driven due to mechanical or documentation problems. 

If you delay pickup, you will have to pay rent for the impound lot, which can further increase the costs associated with your newly purchased vehicle. 

Another important point is to check the condition of the auctioned vehicle before removing it from the yard, since any abnormality in the car, in relation to what is stated in the auction notice, can hardly be justified after its removal. 

Therefore, inspect the entire vehicle before requesting a tow truck or car carrier, in case it cannot be driven away. 

This ensures the prevention of other expenses that could undermine your profit in case of resale. 

After participating in a car auction, the final step is to register the vehicle. 

The receipt will always be filled out with the buyer's personal data obtained through registration on the auctioneer's platform, and cannot be filled out in the name of third parties. 

Once this is done, the receipts are sent to the client for signature, notarized, and released to the buyer within a period that usually varies between 30 and 90 days.

Only after this release can the car be resold through direct sale at a store or dealership, or used by the buyer. 

Now that you know the tricky steps to... participate in an auction When it comes to cars, you just need to put into practice all the tips we just gave you to succeed in this type of negotiation!

Since we like to provide as much information as possible, there are some vehicles that should be avoided at all costs. 

To find out which models these are and how to avoid them at auctions, simply click below.