What's wrong with buying an auction car? See disadvantages!

What's wrong with buying a car at auction?? What are the possible disadvantages of purchasing a vehicle at an event like this? Is it worth it to stop buying a car at the dealership and buy it at auction? What are the possible origins of vehicles that are traded at an auction?

Buying a new car is many people's dream. However, in recent years the value of vehicles has skyrocketed towards constant increases, largely due to the pandemic that struck us in 2020. From then on, the lack of materials for manufacturing, delays in demands and a decrease in revenue led automakers to increase 0km prices.

This increase also ended up influencing the increase in vehicle prices used, as their commercialization has increased exponentially. In this way, consumers are looking for new ways to buy a car in good condition, but at lower prices. That's when auctions appear.

In today's content, we will cover the subject even more, explaining to you What's the problem with buying a car at auction? (if there are problems, of course). So, if you are worried about making a purchase of this type and want to know more about the subject, we recommend that you follow us to the end of the content for more details. Come on, read with us!

What is a car auction?

Before knowing what the problem is with buying a car auction, you need to understand what an event is about. In a short and direct way, a car auction is like any other, however, the difference is that the product sold is a car. Therefore, many people choose to participate to save money.

Still, some people are worried about the origin of the vehicle, especially when they find a car (apparently) in perfect condition, without any scratches. How can such a good car be being sold at auction? That's what we'll talk about a little later, so keep reading.

How much does an auction car cost?

You must also be curious to know the amounts charged for a good at the Banco do Brasil auction, right? Well, about the prices, know that they are well below what you might think, especially the beaten cars. Often, a simple crash that will cost around R$7,000.00 to fix, lowers the price of the car by almost R$25,000.00 (or more).

In general terms, the “rule” (in quotation marks because it is not a true rule, but a mathematical estimate) of 40% is used. It is estimated that a Santander auction vehicle is sold for a value of 40% to 60% of its market value, which appears in the FIPE table. Thus, if a car costs R$100,000.00, at an auction it can fetch between 40 and 60 thousand reais.

Thus, it is an economy that varies a lot downwards, making the purchase worthwhile. Another practical example is if this 100,000 car is crashed. Depending on the size of the crash, this vehicle can be worth less than 10 thousand reais (irreversible cases) or 20-30 thousand reais in cases where the vehicle can still be recovered.

What's the problem with buying a car at auction?

But after all, what's the problem with buying a car at auction? In short, there is no problem, at least not from a practical point of view, since the purchase occurs as in any other situation: the name of the new owner is transferred to the registry office, the vehicle is inspected, and, finally, , the procedure is completed at the dispatcher.

 However, many are concerned about the origin of the vehicle. However, as long as you know which auction to buy from, there are no problems with that. But how so? Well, if your vehicle is purchased at finance auctions, there is a good chance that it will be complete and without scratches, as it was seized for non-payment.

On the other hand, if you buy it at a Federal Highway Police auction, there are chances of having crashes, exorbitant fines that need to be paid, etc. So, prefer financial auctions.

This was our guide on what's wrong with buying a car at auction. We hope we have answered your questions on the subject. If you still have it, comment below and we will respond. To the next!