Vehicle Auction: Is it safe?

Discover the advantages and disadvantages of purchasing a vehicle at auction

Benefits

Vehicle sales at auction end up being well below the list price, costing up to 30% less. This is because the vehicles sold are, for the most part, seized due to some irregularity with the law.

Another major advantage is the variety of models and the condition of the vehicles, with options ranging from popular models to high-end ones like Ferraris and Porsches.

Disadvantages

The vehicles auctioned are mostly vehicles seized for some irregularity with the law, therefore they have particularities such as: irregular documentation, excessive interest on arrears, accidents that were not reported to the buyer, mechanical damage, among others.

It is possible, however, to circumvent these issues, or make them more of a part of your financial reality, as, in auctions that really follow the laws, it is possible to check the vehicle's documents, check the state of conservation and possible mechanical damage beforehand. of the purchase.

How to minimize risks of the purchase

There is no guarantee on a vehicle purchased at auction, which is precisely one of the things that makes them cheaper, so choosing a trustworthy auction house is the first step to avoid any unpleasant surprises.

If the auction vehicle presents a mechanical problem, the responsibility for repairs lies with the buyer, that is, yours, so be sure to check all the conditions of the vehicle you are purchasing before bidding on it.

Before venturing into the world of auctions, have some money set aside , something you can afford to lose. Plan ahead, because auction vehicles require cash payments and usually have a deadline to settle the debt, sometimes incurring penalties if you don't pay on time.

Vehicle documentation is also the buyer's responsibility, so check the vehicle's fines and taxes before purchasing.

Idec tips when purchasing

The Brazilian Institute for Consumer Protection ( Idec ) has some tips for when you are buying a vehicle at auction:

• Participate only if you have money set aside: Payment is in cash and has a deadline.
• Take the vehicle to your trusted mechanic: make a safe assessment.
• Do not agree to pay anything more than the value of the vehicle: according to Idec, this is not legal and must be reported.