Every time ASAP Towing hosts a car auction, people ask where the cars we auction off come from. Maybe it’s just one of the common misconceptions people have about car auctions, or maybe it’s the poor reputation car auctions have. Either way, we’re going to cover where those cars come from in this article.
Banks and Financial Institutions
You’d be surprised often cars in auctions don’t come from anything remotely related to the car business. Instead, a lot of cars sold at auction are from financial and other lending institutions. Commonly known as repo cars and repo vehicles, these are vehicles people have defaulted on and now these institutions are trying to quickly sell them to earn their money back.
These are great buys, and are generally a much higher quality than other vehicles you’ll find at car auctions. Sometimes banks host their own car auctions while other times these repo vehicles end up at a more public or city-wide car auction.
A lot of people trade in their used car when buying a new one, but that used car isn’t always sold by the dealership. More often than not, your trade in was sent to auction to garnish the highest price. Selling a car at auction can be cheaper than trying to fix up an older vehicle and make it presentable for a dealership.
These cars can range in quality, but are normally great buys. A lot of people plan on trading in their car, so they maintain it better to earn a higher value and discount on their new car.
Used car dealerships also send cars to auction, so be sure to check your facts before attending the auction. If you see a sign saying a vehicle is from a dealership, don’t just assume it is better quality than others.
Used car dealerships aren’t always distinguished from new car dealerships, but their quality is certainly different. Used cars are more likely to have problems and need maintenance over new cars. When you see a car from a dealership, make sure you find out which kind it is.
Find Out What’s At Your Auction
When you’re not sure what’s being sold at your local car auction, there’s an easy way to find out. You can call the business office of whomever is hosting the car auction and ask who has cosigned cars for the event you want to attend. If they pushback and refuse, you might have just saved yourself the headache of dealing with a dishonest car auction.
Just like most anything in life, you just need to do a little research before diving into a car auction. Call ASAP Towing to discuss our car auctions or find out where our cars sold at auction come from.