An auto auctions can be a great place to find great values for people in the market to buy themselves a different car. Sadly, it can also be a nightmare for people who bid without thought or preparation. Here is one important question to consider: should you pay with cash at the auction? The answer is simple: NO!
Many have debated this point, over the years, but there are 3 distinct reasons that support this stance. First off, when you pay with cash, it’s much more difficult to prove your purchase. You may obtain a bill of sale or a receipt, but for some this may not be enough.
Secondly, with cash you forgo the option of having the transaction recorded electronically. Some auctions provide the chance to pay via debit or credit card . Knowing this, if you pay by one of these cards, your transaction is recorded on your bank or credit statement. This allows you not only assurance but proof, if needed down the line.
Lastly, who would want to walk around with such a large sum of money on their person? Let’s say your bank is 10 miles from the auction. You withdraw $5,000 USD for the auction and prepare to commute. Just think of how many problems that could occur in transit from the bank and arrival at the auction, problems like robbery and loss of cash (It’s happened to many others before you). These may seem far-fetched, but depending on where you live, they could be very real.
Some don’t seem to have issues with going to auctions with cash, and some auctions only allow cash, so you’ll need to do your due diligence when determining your plan. In closing, when attending auctions, be safe, make sure you can prove your purchase, and ensure you’re protected on all fronts, cash or not.