The purchase of a car is always a pretty big one, whether it is brand new, used or on auction. For this reason, it is always suggested that you have an idea of what you’re looking for, how much it is worth and how much you are willing to pay. When looking at auction cars, you have a good chance of securing a decent deal. However, financing the auction car is another conversation as you will need to have the funds available if you secure the winning bid. Without further ado, can you buy a car with auction finance?
Car Auction Finance
Car auction finance is in place to assist auction-goers that would like to secure the winning bid on an auction car but can’t make the purchase amount. It is basically a loan offered by the auction house to complete your bid and keep the auction payment processes moving smoothly.
A successful bid generally has to be fulfilled soon after the auction has taken place, which adds pressure to bidders that are lacking in the funds that are required. Auction houses will typically need about 10% of the total purchase amount in order to grant auction finance.
Buying A Car With Auction Finance
The simple answer is yes, you can buy a car on auction finance. If this is the case, the auction house you have chosen will arrange for finance to be pre-approved before the auction takes place. This is so that the bidders can make an offer with no concern for the funds they have available. Many car auctioneers work in partnership with financial providers for this purpose.
To get an idea of your budget, we suggest using a car finance calculator. This will help you get a clear view of the auction finance you’ll need and the price range you can safely bid within.
When you apply for auction finance there are a few mandatory formalities that take place, much the same as applying for any loan. You will need to provide credit history, personal information and identification. Once your application is successful you are free to bid at your leisure.
Once You’ve Placed Your Bid
Once your action finance application has been approved and you’ve placed the winning bid, you are free to enjoy your new set of wheels. You will then pay off the auction finance amount in a string of monthly installments at a discussed rate. The car will remain in the legal possession of the finance lender until the full amount has been repaid.
In conclusion, yes you can buy a car with auction finance. Buying a car can be daunting, from figuring out what your budget looks like to finding the right auction car for you to placing the winning bid, so there is comfort in knowing you can fall back on auction finance to secure the car for you. To learn more about auction finance, get in touch with Motus Auto Auctions.