If you’ve been looking into selling your vehicle, you may have noticed that online auctions for cars are becoming increasingly popular.
Which makes sense, if you think about it. Do you really feel like driving from dealership to dealership to collect offers, choose from a limited selection of cars for your trade-in, and try to decipher who’s ripping you off and who isn’t? As for online classifieds, they only solve half the problem. But they can’t save you from the good old tire-kickers, lowballers, no-showers, or downright scammers of this world.
Long story short, online car auctions have gained significant ground in the post-pandemic world. Keep reading to learn what they’re all about, what to watch out for, and how new technology is changing the auction market to your advantage.
What Are Online Car Auctions & How Do They Work?
Most online car auctions work like traditional auctions. Sellers or consignors put their vehicle up for auction, and interested buyers compete against each other by placing bids during a specified timeframe. When the time is up, the highest bidder wins the car. Participating looks something like this:
1. Choose an auction site.
2. Register as a seller or bidder.
3. List your car for auction or start bidding on the car you want.
The exact process varies from site to site, so it’s important that you understand the differences before getting started. For instance, not all auction sites are open to the public. You’d have to partner with a licensed dealer or broker in order to participate in certain auctions. And, depending on the auction, you can expect to see a wide selection of vehicle types in varying conditions, from like-new to mildly damaged or even salvage titles (written-off vehicles that must be repaired, inspected, and certified before they can be registered again as rebuilt).
Why Are Online Car Auctions So Popular?
Much can be said about the thrill and excitement of bidding for your dream ride, or of watching buyers fight to outbid each other for your precious wheels. But there are more good reasons why online car auctions are gaining popularity, with ease and convenience being the most obvious ones. In today’s digital culture, few things are more appealing than the speed, safety, and convenience of getting things done from the privacy and comfort of your own home.
Greater exposure is another advantage. An online auction won’t just save you the trouble of driving to the auction house or dealership and dealing with loud crowds or pushy salespeople— it will also open you up to a much wider range of listings to choose from, and a much larger audience of buyers looking for a car like yours. This will significantly raise your chances of finding a real bargain, or of someone wanting exactly what you have to offer.
And because online car auctions move so much faster, it could all happen in a matter of minutes or hours rather than days, weeks, or even months.
What Are the Disadvantages of Online Car Auctions?
For all the benefits they have to offer, some online car auctions can be confusing and, unless you’ve done your homework, they may hold pitfalls or unwelcome surprises. Here are some key things to keep in mind when selecting a platform:
- The more bidders you compete with, the harder it will be to win the car you want.
- If you’re the seller, there’s no guarantee you’ll get the best value for your car. And you may not be able to back out of the sale.
- Many sites require you to pay a fee for participating, plus extra fees for things like delivery or inspection, Carfax reports, etc.
- You’ll also pay a security deposit before you can start bidding. If you win the auction but decide to not go through with the transaction, you’ll lose that money.
- Auction cars sold on an as-is basis. There is no warranty, no refunds, and you may not even be able to do a test-drive.
- Not all sites guarantee the protection of your payment or private information. Choose only reputable auction sites to avoid the risk of fraud.
Get the Best of Both Worlds
Online car auctions are a great alternative to dealerships or online marketplaces, if you’re willing to put in the work and choose carefully. The good news is that new and emerging technologies are simplifying the process while minimizing the risks for car owners looking to sell, trade, and buy their next car.
For example, MintList uses advanced AI technology to generate an accurate listing and help secure the highest possible bid for your car via a fully transparent 15- or 45-minute online auction. Unlike typical car-bidding sites, the inspection process is fully automated—no one comes to your door. There are no fees—MintList even pays for the Carfax report—and there’s no obligation to sell. If you accept an offer, your payment is guaranteed to arrive within 24 hours.
Moreover, you can use that money to purchase your next vehicle from an extensive new and used car inventory spanning over 100 trusted partners across Canada. Opt to buy entirely online or reserve your car for a test-drive with a 100 percent refundable deposit. Whichever you choose, your new car comes with a comprehensive 60-day or 3,000 km warranty.
MintList also offers an exclusive trade-in program that saves you thousands of dollars in sales tax. That’s because the selling price of your used car goes directly to the new car. So you only pay tax on the difference—even if you’re buying from a different dealer.
So, are online car auctions the way to go? One thing’s for sure: The rise of innovative platforms make buying and selling a car easier, safer, and faster than ever. They can help you get top dollar for your car, save thousands in tax with your trade-i. And avoid the hassle and uncertainty of in-person negotiations. That is, of course, if you choose your online car auction site wisely.
Visit mintlist.com to learn more.