Tip #1

Know your budget. Its easy to get carried away with bidding especially if you find a car that you fall in love with. Determine exactly how much you can afford and stick with it. You must also consider the cost of title work, taxes and plates. Its a good idea to get a quote from your insurance company too. If you are financing, make sure this is arranged ahead of time because once you bid you are legally obligated to purchase the car if you win. If you are paying cash, make sure you have enough. Your bid is legally binding.

#2

If at all possible, try to see the vehicle in person before you bid. If you can’t, at least view all pictures carefully and contact the seller with any questions. You should ask questions before you bid not after. You can also have the vehicle inspected by a third party for a reasonable fee. The ebay sponsored company for this is sgsauto.com. They will go no matter where the vehicle is located. Its also advisable to view a carfax report. Some vehicle auctions already have the report pulled for you to view.

#3

Carefully read all the terms and conditions of the auction. Make note of any defects the seller mentions. Most sellers have specific payment instructions and a deadline for you to pay for and pickup the vehicle. When buying from a private owner, make sure you get the
title when you hand over the cash. Make sure it is signed in the appropriate place. When purchasing from a licensed dealer this is not neccessary as they typically have 30 days to provide you with the title. Dealers must abide by state laws and they can often provide you with 30 day tags whereas a private owner cannot.

#4

A word about warranties. If the vehicle is sold “as is”. That means if it breaks in 2 pieces you own them both. The seller has no obligation to fix anything if your state allows “as is” sales. This is why it is important to inspect the vehicle prior to bidding. A dealer may provide a warranty but a private owner cannot and will not. Ebay offers limited service contracts that you can purchase. This is not a bad idea because these are used cars and mechanical problems can arise at any time.

#5

About bidding. If you are not registered on ebay, I suggest you do it now. Why? Because you can place vehicles you are interested in on your “watch list” to keep track of them and narrow your selection down from there. If you really want the car, bid your max. Why? Because an infamous “sniper” may outbid you in the last second. Wouldn’t it be a shame if you watched a car all week with the intentions of winning it and someone outbid you in the last second because you were playing around bidding in small amounts. Like I said, decide on your max early and don’t get carried away with it.

#6

If the seller offers to sell you the car outside of ebay, decline the offer. Why? Ebay purchase protection only covers “on ebay” transactions. Plus, you want to have the purchase documented in case of any issues. You also want to be able to leave feedback for the seller about your buying experience.