What’s the best way to buy at a car auction? You could get a real bargain

Not for the faint-hearted. This method suits people who know what to look for in a car like used car dealers. Cars sold at auctions will be cheaper but there are risks involved. There is no warranty offered nor will you be allowed to take a test drive. You are only given an opportunity to inspect the car and the most start the car. Things happen fast at auctions and for the inexperienced it can be a daunting experience. Go as a spectator for the first few times to see what happens, leaving all means of payment at home, like you credit cards and carry less than RM100 in your wallet to prevent an impulse purchase. Take along someone who knows about cars. It pays to be cautious and do plenty of homework. Decide how much you want to spend before you go and stick to it. Each vehicle has a form attached to the windscreen giving information on its background and or a copy of the registration card. Listen carefully to what the auctioneer says, keep your head and don’t get sucked into the excitement. Many cars are ‘sold as seen’ which reduces your legal rights if the vehicle turns out to be faulty. No auction house will not let you test drive the car. Inspect as best you can, including starting the engine. At the fall of the hammer, you will need to make a deposit, usually of 10 per cent or RM500 and you have 7 to 14 days to make full payment or else your deposit will be forfeited.
Payment is required mostly by cash or bank cheque however some now accept credit cards. At the time of purchase, you should be given a receipt and the completed transfer of ownership form. You will need to sign a set of JPJ transfer ownership documents for the car and give this to the auction house office and the appropriate transfer fee. Many auctions now have finance company representatives available on site to provide loans to buyers. Mostly these are their own cars which they themselves have repossed and are now looking to recover their investment.