If you're the type of person who loves to look for a good bargain, then you may get excited whenever you hear that there's an auction. So many things go on auctions - from real estate to artworks, jewelry, and cars. However, do you think buying used cars at auctions will give you better deals than buying at a dealership? Let's examine why it's better to buy used cars at auctions in the Philippines.
Should I Buy Cars at an Auction?
The answer is a resounding yes! You can absolutely find many good deals at car auctions. Auctions are the primary tool of banks so they can sell their repossessed assets like cars and real estate.
The trick when it comes to finding a great deal in car auctions is to balance the risks against the amount you'll be saving (which is normally a lot!). If you know how to avoid the common mistakes bidders make, then you can save a lot of money and bring home your dream car.
Getting a car at an auction sounds great considering all the money that you can save. However, like with most things in life, there are advantages and disadvantages to buying cars at auctions. To know if this is the best option for you to buy a vehicle, check this list of pros and cons of car auctions. This way, you can weigh in on what you know before making a decision.
Pros of Buying Used Cars at Auctions
The vehicles being sold at auctions have very affordable prices if you compare them to buying from a distributor or a dealership. In many cases, you can save up to 40% versus the brand-new version of the car. This is why if you have a limited budget, you should consider participating in an auction. In fact, auctions are done online as well which makes it all the more convenient for you.
- Peace of Mind
You can have that peace of mind knowing the car you purchase at an auction is a good one. It's because the auction organizers ensure that everything they sell is of high quality and that the cars are in good condition. Since the goal of the auction is to sell the items, they'll do their best to make the bidders want to buy what's being auctioned off.
- Wide Range of Options
In online car auctions, you will most likely be surprised by the different models and brands that are being sold because of how affordable they are. If you're looking for vintage cars, those can be found at auctions, too. What you can expect from car auctions in the Philippines is that the prices are so cheap, you'd wish you can buy them all.
Cons of Buying Used Cars at Philippine Auctions
There's always a flip side to things so you should also be aware of some of the disadvantages of buying used cars at auctions. It's not to discourage you from participating or getting your dream car at an auction. It's simply a part of your due diligence as a buyer to know what you're getting into.
- Limited Opportunity to Inspect
Since you're participating in an auction, you won't be able to test drive the car, it's not just for online auctions. Even if you go to a conventional auctions, the best you can do is inspect the vehicle. So, there's some risk here that you should think about.
While you may not be able to test drive the vehicle, you still can inspect it before the bidding process begins. With Automart.Ph, you can even schedule an expert mechanic to help you in inspecting the car.
- Lengthy Documentation Process
The paperwork relating to your purchase can take up to a month. It's going to take time for the banks to process the documents so you need to be patient. Nevertheless, you can still use the car while you're waiting for the proper documents to arrive.
- Small Inconveniences
In an on-site auction, you may find yourself far from the auction stage so you may have trouble placing bids if you're not positioned strategically. Also, there are plenty of inconveniences because it's usually done under the scorching sun and the bathrooms on-site are limited. This is a key advantage of online auctions, such as the ones with Automart.Ph, you can inspect the vehicle online and bid on it at your own leisure because it is an online auction site.
- Secret Reserve Price
This is the seller's minimum amount that he or she is willing to accept as the bid that will win. This price also prevents a bidder from winning an auction if his bid is lower than the reserve price. Sellers are not obligated to disclose what the reserve price is. And when the price hasn't been met, the seller has the prerogative to not sell the car. It's something that many bidders don't like because it lessens their chance of getting really good deals. Automart.Ph doesn't have this reserve price. If you are the highest bidder, then you will win.
- High-Pressure Tactics
Auctioneers employ tactics so that you will bid higher. They can talk really fast so that there's only a short time for you to think and decide. There are also people planted in the audience to shout and congratulate you whenever you raise your bid. This encourages you to bid even more. It's something you should be aware of because you may spend more than you should. Be disciplined and have a walkaway price to stick to. With Automart.Ph, you can bid comfortably in your home without worrying about these high-pressure tactics.
- Buyer's Premium
Think you got a great deal? Think again. Many auctioneers charge their buyers around 5-10% additional to that of the hammer price. So, apart from the price you've bid on, you have to pay the premium. When you factor that price in, the sweet deal may not be that sweet after all. The premium goes to the auctioneer and not to the seller, to cover the administrative expenses. You don't have to pay any kind of buyer's premium with Automart.Ph because we don't charge a buyer's premium.
The Verdict: Is a Used Car Auction Worth It?
Participating in an auction can be intimidating and daunting for first-timers. But don’t worry. As you can see here, you only need to inform yourself of the risks as well as the benefits of buying a car at an auction. You can then decide for yourself if this is the best course of action for you so that you can finally get the car that you want.
With enough research, you’ll soon find that you have more confidence when it comes to joining an auction. You’ll know what to look for, how to scrutinize details, and how to bid. Ultimately, buying a vehicle at a car auction has more advantages than downsides. Especially with online car auctions in the Philippines, you can participate wherever you may be.
Why is Automart.Ph Different from Other Car Auction Sites in the Philippines?
Now that you have some knowledge about what goes on in an auction, the next step is to choose the best car auction site in the Philippines. Individuals who are looking for an affordable car have a lot of options nowadays because there are a number of Philippine car auctions available, such as ones in Paranaque and Subic.
One of those is Automart.Ph which is arguably the best and only online car auction option for you. It’s because Automart.Ph takes away all the bad characteristics that bidders don’t like in an auction. For example, you don’t have to worry about the secret reserve price, having to pay a buyer’s premium, nor getting pressured by tactics just to raise the bidding price.
Automart.Ph is trusted by many car buyers because you get truly affordable used cars. No need to worry about paying a hefty buyer’s premium. The process is transparent and you will be supported all the way as you go through your car-buying journey.
Frequently Asked Questions About Car Auctions in the Philippines
In this section, we're going to look at some of the common questions that people ask when it comes to car auctions in the Philippines. You may be asking the same questions as well. Read along to find out the answers and increase your knowledge about Philippine car auctions
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.
How much are cars at the auction?
The price of cars at an auction can vary depending on the brand, model, condition, and several other factors. What you can be sure of is that they are much cheaper compared to buying a new car at a dealership. You can save up to 40% at an auction online at Automart.Ph for what you'll spend on a brand new car.
Where can I buy auctioned cars? Where are cars auctioned in Philippines?
Car auctions, both on-site and online, are good ways to buy repossessed cars. Banks need to get repossessed cars moving and this is done through an auction. You may check the schedule of on-site car auctions in your city but another way to buy repossessed cars is to participate in an online auction at Automart.Ph. You can do it any time at the comfort of your home.
Can anyone buy a car from an auction?
If it is a public auction, then yes, anyone can buy a car from an auction. Most auctions require that you deposit P10,000.00 (sometimes more) bid deposit before you can bid on a car. If you're looking to buy a car for your personal use, you can simply go to Automart.Ph and place your bid on the car that you like.
How do car auctions make money?
Car auctions usually make money from the buyer's premium that buyers pay on top of the hammer price of the car. This buyer's premium is usually at 5%. At Automart.Ph, however, there's no need to pay this fee because there isn't any buyer's premium at all. Walang patong! Car buyers only need to pay for the amount that they've bid on for the car.
Why would a vehicle be sold at auction?
Most of the cars sold at auction are repossessed cars by banks. The banks need to move their inventory so the cars are sold at really cheap prices at auctions. You may choose to schedule an inspection on the car with an expert mechanic so that you can check the condition of the vehicle before buying it or placing your bid.
Now that you're much more knowledgeable at car auctions, you can be more confident in placing you bid on the vehicle that you like. With Automart.Ph, participating at a car auction in the Philippines is just so easy. You don't have to go to an on-site auction where it can be hot, crowded, and inconvenient. Bidding at Automart.Ph is simple and you can do it any time you want.
Automart.Ph is unlike the typical car auctions. You don't need to worry about paying a buyer's premium, there's no secret reserve price, and no pressure tactics that will make you bid beyond your budget. You have full control of your bidding process.
Take a look at the cars available at Automart.Ph today and make your first bid!
Contact us at 0927-887-6400 or chat with us using the chat function of the website, located at the lower-right-hand portion of the screen.
We hope to help you get your dream car soon!