Thinking about selling off your old car? You might consider listing it at the local auction house. Auto auctions allow people to buy used and sometimes new cars at discounted rates. By listing your vehicle, you allow the public to place bids until the highest bidder wins. Another popular auction option is the online powerhouse eBay.com. On eBay, you can not only list your car, but you can set a minimum price for selling it, through a process called reserving.
The major question people ask related to the auction is can I get what my car is worth at an auction? This depends on multiple factors. First, you need to determine the cars market value and eliminate your personal opinion of what the car is worth. Websites such as Kelly Blue Book provide an industry standard when it comes down to determining worth. I would advise printing out a blue book estimate when making this decision.
Next, take in account if the car is currently running well and if the car is currently leased or financed. These 2 variables make up a major part of your overall decision. If the car is currently being financed through a company, you need to be sure that your sale price is more than what you currently owe on the car. People trade in cars daily with more money owed than the car is worth, causing them to have the unpaid balanced rolled over to the next car. This is what’s referred to as being “upside-down” on your loan. In the case of an auto auction, the bank will not release the title to the buyer until the entire car is paid off.
Another thing to take in consideration is the popularity of your vehicle. If you have a hot, trendy car in good shape, you may get more than it’s actually worth at an auction. Overall, just pay attention to all the variables above to ensure you put yourself in the best position. Besides, only the market can determine what your car is worth, not you.