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The Common Misconception: Auto
auctions are only open to car
dealers.
The Surprising Truth: Anyone
with the right resources can
participate in the same auctions
as the dealers!
Think about it. How much could
you save if you bypassed the
dealers and purchased directly
from their sources? 30%, 50%,
maybe even 75%.
As unbelievable as this sounds,
it is possible with a little
patience and research.
As you probably already know
from past experience, car dealers
will do ANYTHING to get you
into the car of your dreams.
Whether you can afford it or
not!
I can recall a former coworker
who got into a new luxury vehicle
with a little "creative
financing." The manager
divided his mortgage payment
in two. His justification: As
a married man his wife was responsible
for the other half of the mortgage....even
though she was a stay at home
mom! Luckily for them, they
found a way to pay their huge
car payment and avoid repossession.
Unfortunately, others aren't
quite as lucky. Thousands of
people default on their loans
everyday simply because they
couldn't really afford it in
the first place.
This can work to your advantage.
The banks and financial institutions
that serviced the loans want
to recoup their loss as quicly
as possible. Add to that the
exhorbitant cost of storing
these vehicles, and you can
easily see why the banks want
to dispose of them in a timely
manner.
After all, the longer financial
institutions have to store these
vehicles, the less money they're
going to get back.
Auto auctions are the quickest
way for banks to rid themselves
of repossessed vehicles.
Car dealers know this, and they
go to great lenghts to protect
this knowledge from the general
public. After all, auto auctions
are a huge source of revenue.
Dealers can purchase vehicles
at a fraction of their value,
and then resell them at a huge
mark-up.
But what if you could avoid
the dealer's mark-up and instead
pay what they pay? What impact
would that have on your wallet?
Amazingly enough, auto auctions
are not solely restricted to
car dealers. Up until a few
years ago, I too shared this
common misconception.
It was only by sheer luck that
I stumbled upon a website that
allowed me to search local auctions
by zip code and vehicle make
that I learned the surprising
truth. I was paying dealers
thosands of dollars in unnecessary
mark-ups.
I tried the website's search
feature out, and to my surprise
the cars listed were exactly
what I wanted. Only a few years
old with very low miles. Many
of them were still under the
manufacturer's original warranty!
This made sense of course, since
most of them were repossessions.
The auction house was even willing
to throw in a vehicle history
report at no extra cost and
a 3 month warranty.
Sure I wouldn't get the complimentary
car washes and oil changes the
dealer throws in, but that surely
wasn't worth thousands of dollars
in premiums.
After a little hesitation I
joined the auto auction membership
site. They helped me locate
auto auctions in my area, and
gain admission to them through
their exclusive access rights.
I learned what questions to
ask, and how to handle the bidding
process.
It was a lot simpler then I
ever imagined it could be.
The day of the auction, I showed
up a few hours early to inspect
the vehicle I was interested
in and get a feel for the place.
It must have been a slow day,
because when my car came up
for auction only a few dealers
were bidding against me. Since
I wasn't buying the vehicle
for resale, I succeeded in outbidding
the dealers!
It was a truely empowering experience.
I got the vehicle of my dreams,
and I only paid a little over
half its book value!
What did this experience teach
me? Auto Auctions can save you
thousands in unnecessary dealer
mark-ups.
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