Car auctions... Safe? Good deal?

[Motegi]

I just wanted to get some car buying advice from fellow NSXers.

My wife and I are looking to purchase a used '04-'07 MDX as an "extra car" mainly for utility purposes and those times when we need to transport more than 5 adults (a couple of times a year). As you can see in my sig, right now we have three sedans and an NSX. When we plan trips to Lowe's/Home Depot for gardening supplies and for larger items like TVs/furniture we usually have to make multiple trips or "borrow" an SUV from family. This is amounting to several times a month and so I think it's time we had a larger vehicle of our own. The only problem is that neither of us want to use an SUV as a daily driver so purchasing an older one as an "extra" car is what seems to make sense.

That being said, one of my wife's co-workers says she can get almost anything at auction if we just tell her what we are looking for. I've never purchased a car through an auction and am wary about purchasing an older MDX sight unseen.

What is the best way of buying a vehicle at an auction? Are certain auctions more reputable? Aren't most cars that end up in auctions those that dealers found were unsuitable for sale?

Finally would I really save that much by purchasing though an auction versus finding one by a private party or local used car dealer?

 

[NA1MT]

Only gaurantee you will get from an auction is that there isn't one. I would buy car from auction only if I was there to inspect before purchase.

 

[Motegi]

Only gaurantee you will get from an auction is that there isn't one. I would buy car from auction only if I was there to inspect before purchase.

At an auction what type of inspection can you do?

Just a static inspection of the interior/exterior?

Can you actually start the engine/test the electronics/drive it?

 

[Ponyboy]

I just wanted to get some car buying advice from fellow NSXers...

First gen MDX's go from year 2001 to 2006. The second gen MDXs start from model year 2007 to 2013. There are significant differences and variances in prices from first gen to second. The first gens have a history of fragile transmissions although I have yet to encounter a single one with a bad one.

That being said, one of my wife's co-workers says she can get almost anything at auction if we just tell her what we are looking for. I've never purchased a car through an auction and am wary about purchasing an older MDX sight unseen.

People buy cars sight unseen all the time. Actually about 28 million were bought and sold through sites like Cars.com, Autotrader.com, and ebay last year (2011). Most auctions have the cars available to see online. I'd ask your wife's co-worker to let you see what's available online and then go from there.

What is the best way of buying a vehicle at an auction? Are certain auctions more reputable? Aren't most cars that end up in auctions those that dealers found were unsuitable for sale?

The best way is to be well-prepared before the auction: 1) run an AutoCheck or Carfax of the cars you're interested in beforehand, 2) decide on a price point you're willing to play with, and 3) inspect the cars you're interested in on the day before the auction starts, 4) get a post-sale inspection so that you have even more peace of mind. Certain auctions are more reputable and I'd stick with ones affiliated with Manheim or Adesa. Cars at auction can either be vehicles traded in, off lease vehicles, fleet vehicles, private sale vehicles, etc. Some are definitely suspect but some are simply awesome and some of the best cars you'll find. It just all depends on the car and the deal.

Finally would I really save that much by purchasing though an auction versus finding one by a private party or local used car dealer?

Again, it all depends on the car and deal. You can probably save 10-20% provided your friend's coworker doesn't want any sort of commission or buyer's fee.

Hope that helps.

 

[Motegi]

First of all, thanks for all of the excellent information and tips!

First gen MDX's go from year 2001 to 2006. The second gen MDXs start from model year 2007 to 2013. There are significant differences and variances in prices from first gen to second. The first gens have a history of fragile transmissions although I have yet to encounter a single one with a bad one.

My parents currently own both a first gen and a second gen MDX and I assisted them with purchase both new at the dealers so I know a little about each. In my case I chose the range btw 2004-2007 because I think these will fall in me and my wife's desired price range for an "extra" car. I am not particular about 1st gen or 2nd as we like them both. The 2nd gen SH-AWD and DVD-A doesn't matter as much as this wont be a daily driver.

People buy cars sight unseen all the time. Actually about 28 million were bought and sold through sites like Cars.com, Autotrader.com, and ebay last year (2011). Most auctions have the cars available to see online. I'd ask your wife's co-worker to let you see what's available online and then go from there.

Actually, I purchased my NSX sight unseen from a Prime member on the other side of the country but was reassured with two separate PPIs I paid for by area Acura dealers and the fact that it was a Prime member. In the case of an auction I wouldn't have the benefit of a formal PPI...

The best way is to be well-prepared before the auction: 1) run an AutoCheck or Carfax of the cars you're interested in beforehand, 2) decide on a price point you're willing to play with, and 3) inspect the cars you're interested in on the day before the auction starts, 4) get a post-sale inspection so that you have even more peace of mind. Certain auctions are more reputable and I'd stick with ones affiliated with Manheim or Adesa. Cars at auction can either be vehicles traded in, off lease vehicles, fleet vehicles, private sale vehicles, etc. Some are definitely suspect but some are simply awesome and some of the best cars you'll find. It just all depends on the car and the deal.

A post-sale inspection wouldnt really provide me with any recourse after the sale correct? It would just show me what I need to fix?

On an auction vehicle how do I know if the timing belt service has been done (if the mileage is btw 80k-120k)? Do I just assume that it hasnt and have it done again?

Again, it all depends on the car and deal. You can probably save 10-20% provided your friend's coworker doesn't want any sort of commission or buyer's fee.

Hope that helps.

I don't think that there would be any fees involved. So a savings of 10-20% would probably mean we could swing for a newer vehicle with lower miles!

 

[robr]

I had my friend's online Mannheim account when I was looking for my RL. I learned a ton, including auctions aren't for me. Each vehicle generally had a very thorough PPI done beforehand and you really needed to do your homework before the auction, know exactly which vehicles you were interested, your max bid and what time the auction would be. It also helped to know who consigned the vehicle to auction (ie, financial institution is much safer than Joe's Used Cars). When the car came up for auction, you'd see in a small video window the car pull up, bidding went for a fixed (IIRC) 20 or 30 seconds, then it was over, just like that. No time to think or second guess. There were also auction fees of several hundred $$. I wouldn't be comfortable having someone else make those decisions for me.

 

[DocL]

My family has bought many cars from the Manheim auctions without any problem. We only buy cars with low miles that still have a remainder of the OEM warranty. At some of these auctions they disclose if the car has an accident history and branded title. I think you are safe if you stick to a 2-3yr old car with a factory warranty. One thing to remember is that 4wd SUV prices go up this time of the year at the auctions.

 

[DRIFTER]

Use a dealer you trust. Sure the Auction is used by dealers to dump their crap they cant sell. But there are good deals if you do your homework and buy right. Some auctions are better then others. I go to different auctions for different types of cars. I drive a different car every year. I can buy a car at the auction drive it for a year flip it and make money on it the following year. I have been doing this for years.

 

[Ponyboy]

A post-sale inspection wouldnt really provide me with any recourse after the sale correct? It would just show me what I need to fix?

A post-sale inspection would give you some recourse after the sale (for a small fee). Including, but not limited to, having the seller buy the car back minus auction transaction fees.

On an auction vehicle how do I know if the timing belt service has been done (if the mileage is btw 80k-120k)? Do I just assume that it hasnt and have it done again?

For my company, we just assume that if there is any question...that there isn't...we just change the out the timing belt and perform any other associated service items.

I don't think that there would be any fees involved. So a savings of 10-20% would probably mean we could swing for a newer vehicle with lower miles!

Yep, you'll be able to afford a newer car. I wouldn't worry so much about miles. Good luck!

 

[Motegi]

A post-sale inspection would give you some recourse after the sale (for a small fee). Including, but not limited to, having the seller buy the car back minus auction transaction fees.

Really!? I didn't realize this! So if there is a big mechanical issue that was not disclosed prior to the auction and is only discovered in a post-sale inspection then you can request that the seller buy the car back? Does this happen often? Is the seller required to buy it back?

Yep, you'll be able to afford a newer car. I wouldn't worry so much about miles. Good luck!

Don't the miles mean more than the chronological age? As in the fact that the drivetrain components have had more wear and tear?

 

[Teej]

All an auction has to do is start the car. No test drive permitted. Many auctions have their own onsite master mechanic but there is no guarantee the cars they auction off will run more than a few feet. This is not to scare you and discourage you from buying a car at an auction as many of those vehicles are in pretty good to great shape.

You just dont want to walk into an auction and buy a car with the intent of getting something with no issues. Best case scenario you get a steal with very few problems but in most cases, look to spend quite a bit more money on fixing the vehicle to where you want it.

Many cars arrive at auction via repossession, seizure, or bankruptcy. Its the banks last chance at salvaging something even if the vehicle value was written off. The bank gets a percentage, the auction gets a percentage, Uncle Sam gets a percentage, and you get a vehicle.

The best auctions are probably dealer auctions, where you have to send someone who is a licensed dealer. Auction houses know they have to have vehicles at least somewhat more conditioned than at public auctions. Dealerships send representatives much more equipped to diagnose a vehicle on the spot than an average consumer. Tools that can instantly measure the thickness of the paint to see what kind of body work and paint job were performed.

On another note, I have a friend that went to a public auction last year and walked away with a 2009 Range Rover HSE for $12,000. The only problem with it was the passenger cup holder was broken.

 

[Ponyboy]

Really!? I didn't realize this! So if there is a big mechanical issue that was not disclosed prior to the auction and is only discovered in a post-sale inspection then you can request that the seller buy the car back? Does this happen often? Is the seller required to buy it back?

I would talk to your friend and the auction they frequent about particular details. But if they are affiliated with Manheim or Adesa, a post-sale inspection will give some recouse if the vehicle is misrepresented. If you find issues that were not previously disclosed, then you'll go through an arbitration process, with the intent to get out of the deal.

Don't the miles mean more than the chronological age? As in the fact that the drivetrain components have had more wear and tear?

MDX's are very reliable vehicles. I wouldn't let mileage dicated on whether one is good or not.

 

[guanacoracing]

The best auctions are probably dealer auctions, where you have to send someone who is a licensed dealer.

^ This.

You have to find out what your wife's co-worker is talking about when she says "auction," whether an Adesa or Manheim or something else altogether.

This is usually what auto brokers do if you contact one and ask for a specific vehicle that you're looking for: they scour the auctions.

As some have mentioned, you do get good deals.

- - - Updated - - -

The best auctions are probably dealer auctions, where you have to send someone who is a licensed dealer.

^ This.

You have to find out what your wife's co-worker is talking about when she says "auction," whether an Adesa or Manheim or something else altogether.

This is usually what auto brokers do if you contact one and ask for a specific vehicle that you're looking for: they scour the auctions.

As some have mentioned, you do get good deals.

 

[DRIFTER]

Public auctions are garbage! Repo auctions cars are bought as is with branded titles to reduce sellers liability. Dealer only auctions is the place to get the deals. Most cars the public buys off a used car lot / dealership are auction cars. Dealerships try to hide the fact the cars come from the auction because of a public misconception that auction cars are garbage. I can just about do everything I would do when buying a car from a private seller at the auction. If its something major is wrong with the car, it can be arbitrated (the dealer gets refunded). My business has only had to arbitrate a car one time in 30+ years of business. If you know what you're buying and do your homework you can find great deals.

 

[PHOEN$X]

FYI: 15,000+ Sandy-ravaged cars headed for auction