Putting your car up for sale at auction can be a convenient way to make money quickly, especially if your vehicle is in a decent condition and has been well serviced. Of course, like any auction, if your car doesn’t sell and fails to reach its reserve price, you will still need to pay the entry fee regardless. Here, we look at some of the key benefits of selling your car online and some useful tips.
Set your reserve price accordingly
It may be advisable to set a reserve price in case there is little interest in your car at the auction. Without this minimum benchmark, you could end up losing thousands of pounds and end up selling your car for practically nothing. Indeed, situations like this can be a lucrative way for traders to make money on items that have limited demand. However, if you set a reserve price that is too high, you may not sell your car at all, which is why it is important to think carefully about the price you choose beforehand.
The person who makes the highest bid at the auction automatically becomes the new owner of the vehicle as soon as they have made their payment (and cleared any commission costs incurred by the service provider, though it’s becoming more commonplace for websites to waive these charges altogether in order to remain competitive). However, do bear in mind that the selling price of a used car will typically be several thousand pounds less than the standard price, which is mostly due to the fact that cars lose a significant proportion of their value as soon as they starting being used and change from having a ‘new’ status to a ‘second hand’ status.
Don’t attempt to bid for your own car
Bidding for your own vehicle is not necessarily going to convince others to outbid you. Doing so is often referred to as ‘sharking’ and is heavily frowned upon by auction sites, with many choosing to take action against the user if they find evidence of foul play. The best tactic is just to sit back and let nature take its course. Occasionally, there might be someone who buys your car well above its original reserve price. However, like anything in life, auctions do involve a certain amount of luck and will often depend on whether the right bidder happens to be at the right place at the right time.
A faster way to make a sale
Probably one of the best advantages of auctions is that they can generate a much quicker sale than a private arrangement. If you need to make money fast or if you’re a car dealer looking to remove some of your vehicles as quickly as possible, an auction may be the best solution, even if you are likely to make less money than a private sale. Perhaps you have had trouble selling your car to a private dealer and you simply don’t have the space to store it in your garage or driveway. In this case, an online auction is the most practical way to remove your unwanted vehicle and make a reasonable amount of cash at the same time.
If your car is not sold for its reserve price, you can consider making a compromise with the highest bidder or opt to enter your vehicle in the venue’s next auction. You will still need to pay the same entry price and you will also be required to pay for storage costs if your vehicle is stored for a certain amount of time. However, it may still be worth the costs if you do happen to find a buyer that is willing to pay above your reserve price.