Why are auction cars cheaper? You've probably wondered why. After all, the dream of many Brazilians today is to buy a quality vehicle at affordable prices. 

And auctions are an alternative for that. But did you know that if cars produced in Brazil today didn't have taxes, their prices would be about 50% cheaper? 

Exactly! And, as we know, Brazilians have access to very expensive cars. And, with the pandemic, the lack of parts and the rise in the dollar, vehicle prices have skyrocketed again. 

Furthermore, this price increase has also affected used and nearly new vehicles. Therefore, due to all this difficulty in terms of prices, many people have been looking for vehicles at auctions. 

This is because they are inexpensive and accessible options, even if they are now a little more expensive than before. Therefore, we're going to show you why auction cars are cheaper. 

Furthermore, you will learn about the main types of auctions that exist and, most importantly, the advantages and disadvantages of this type of purchase, as well as where to find a copy in excellent condition to call your own! 

Just as important as understanding why auction cars are cheaper is knowing the different types of auctions that exist. This is because some auctions are better and others are worse for making a deal. 

Today, the three main types of auctions where you can buy a vehicle in good condition are listed below. And we'll now show you the difference between each of them. 

The manufacturer's auction, as the name suggests, is conducted by the manufacturer itself. This is one of the best auction options to participate in because the chances of the vehicle being of good quality increase. 

Even so, it's common for vehicles in this type of business to have suffered minor damage on the production line, such as a few scratches or dents, but nothing more than that. 

Therefore, vehicles sold at manufacturer auctions do not have mechanical damage, but rather only some type of cosmetic defect. Furthermore, you can acquire them for prices below those listed in the FIPE Table (a Brazilian vehicle valuation guide). 

When someone questions why auction cars are cheaper, this is one of the reasons: in financial recovery auctions, cars are auctioned purely because their owners have defaulted on payments. 

Therefore, this auction is mainly conducted by banks and financial institutions that offered credit for vehicle financing. If the installments are not paid, the institution repossesses the vehicle from the buyer and puts it up for auction. 

The auction serves precisely to allow the finance company to recover its money and avoid losses. Along with the car manufacturer auction, this is another excellent vehicle auction option to participate in. In other words, it's well worth it!

And lastly, we have the insurance company auction. As the name suggests, this type of auction is conducted by insurance companies that offer vehicles that have been involved in some type of accident. 

Within the claims process, there may be vehicles that have been recovered from theft or robbery, or that have been involved in some type of accident. 

This is a safe purchase option, but it requires attention before the auction. After all, it's necessary to research the vehicle's history to check what type of accidents it has been involved in. 

We've now reached the best part of this article. The answer to the question: why are auction cars cheaper? In truth, there's no absolute truth to this question. 

Ultimately, the reasons why auction cars are cheaper vary. The need for banks and finance companies to recoup the money "borrowed" is currently cited as one of them.

Furthermore, the intention to minimize losses on the part of automakers is another factor that weighs in and lowers prices. Moreover, in insurance auctions, claims history is the primary factor in determining prices. 

For example, it's common that in accident cases, the damage needs to be more extensive. Therefore, naturally, the price of the vehicle is lowered. 

Finally, overdue documentation, such as vehicle registration tax or licensing, is another factor that leads many vehicles to auction and makes them cheaper. Therefore, the prices are lower precisely because of the need for regularization. 

Finally, another big reason why auction cars are cheaper is the storage time, since these places are expensive to keep the vehicles. 

Therefore, one way to offset this cost is precisely to lower the prices so that the vehicle can be sold and the storage period can be paid for. It's that simple! 

Now that you know why auction cars cost less, it's time to discover the main advantages and disadvantages of this type of purchase. 

Now that you truly understand why auction cars are cheaper, you're probably wondering about the pros and cons of this type of purchase. 

So, in order to keep you informed about this type of purchase, we've outlined the advantages and disadvantages to show you. Let's take a look at each one, shall we?

Today, the main advantage of buying cheaper auction cars is the price! This is because the discounts on an auction car are 30% to 50% below the values listed in the FIPE table. 

In this way, they are much more advantageous than vehicles purchased from dealerships or car lots. Furthermore, cars bought at auction have their vehicle tax debts already paid off.

This is a major advantage compared to used cars in general, as is the diversity of models. After all, auctions usually feature everything from popular models to the most luxurious vehicles. 

Therefore, when it comes time to purchase a car, it's possible to compare the features of various options. This allows you to make a more informed choice that best suits your preferences and financial situation. 

After discovering why auction cars are cheaper and learning about the advantages of this type of purchase, it's time to look at the downsides, such as the need for cash payment.

Although they have an attractive price, in most cases you need to make the full investment upfront. Therefore, if you are thinking of buying a vehicle at auction, have money set aside for that purpose. 

In other words, there's no point in trying to take advantage of the excellent prices on cars offered at an auction if you don't have the money set aside for it. Therefore, it's important to be aware of this so you don't miss out on good opportunities.

Another disadvantage is the extra expenses associated with vehicles acquired at auctions, which are the responsibility of the owner. Therefore, it's important to keep in mind that the initial purchase price may increase, and you need to be prepared for that. 

Among the main extra expenses that tend to arise are mechanical costs. Therefore, one way to protect yourself from this is to always take a trusted mechanic with you when closing the deal. 

This type of action avoids a number of future problems. In addition, another extra expense for the new owner is related to the car's documentation. 

Therefore, taking into account all possible expenses and adding them to the price of the car is essential, as it allows you to determine whether or not buying a particular vehicle at auction will be profitable. 

Now that you know why auction cars are cheaper, you're probably wondering if this type of purchase is worthwhile. Our experts say yes!

Even though there are some disadvantages to this type of purchase, the advantages far outweigh the disadvantages. Therefore, the purchase becomes a smart and worthwhile one. 

However, as with any type of business, it's necessary to consider a number of factors and always seek the opinion of an expert. 

And to wrap up this amazing article, we have a mega gift for you: 10 safe and functional auction options where you can find and buy your copy at a lower price. 

Intrigued? Want to buy a cheaper and safer auction car? Then just click below!