Buying cars is easy nowadays. There are numerous car dealerships scattered around the metro on busy highways, their garages filled to the brim with presentable used cars. Online platforms like Olx.com and Facebook marketplace allow access between buyers and sellers in the palm of your hands, but all these don’t necessarily mean that they’re cheap, as these sellers often have huge markups. On the other hand, car auctions hardly have any.
What are car auctions?
Car auctions often sell repossessed cars (“repos”) from banks through bidding. Repos are often the cheapest because banks want to get rid of them as fast as they can. And these are opportunities for bargains as auctions usually sell cars at 30-40% less compared to the used car market.
Why not a new car?
When you buy a new car, you’re getting a car with the new car smell, an odometer at zero, and a loan that is burning a hole in your wallet for as long as the loan lasts. Buying used cars has always been an alternative to paying the premium of buying brand new, offering people who want cars cheaper alternatives for the same output. You might not be getting that new car smell and an odometer at zero, but you’re saving a lot of money.
Are new cars worth it?
There are a lot of reasons to buy a new car over a used one, but ultimately the decision to do so boils down to personal preference. Some people buy used cars because it’s their dream to walk out of the dealership, with the seats still covered with plastic, the air-conditioning cold and smelling new, but you’re paying an expensive premium just for these. Saving up to six digits off your next car purchase might give you more financial legroom.
In the end, it’s necessary to ask yourself whether the premium for a new car is even worth it. This is just us being realistic. And given that gas prices are at an all-time high right now, you should be too.
Interested in participating in car auctions? Browse our catalog here.