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Look for low reserve or no reserve auctions. Reserve price can often be as high as the car's retail value. Low reserve should be some where between wholesale (or trade-in value) and private party price. Some recommend looking for "No Reserve" auctions to bid on, but I don't agree with this because if the highest bid is below fair market then the seller could potentially cancel the listing before the auction ends.
Does the seller allow you an out? Bid only on auctions where sellers allow you to cancel after you inspect the car. Don't buy a car until you've had it inspected first...especially sight-unseen.
Obtain a vehicle history report. A vehicle history report can provide useful information, such as who holds the title to the car and whether the car has been in an accident that was reported to authorities. You'll also find out whether the car was ever reported stolen, salvaged or damaged.
Get the car inspected by an ASE-certified auto mechanic, if you brought the vehicle at auction or via private party. Schedule a mobile vehicle inspection with a professional mechanic or an auto inspection service that will go to the car if it's not located in your area. This is a great benefit. An auto inspection can identify hidden problems and help you avoid a costly mistake.
Now, keep in mind that an auto inspection isn't a warranty and won't guarantee a car is free from defects or that the inspector has identified all existing problems. But do keep in mind that sometimes, though, an auto inspection will uncover problems not reflected in the vehicle history report that could cause you to walk away from the purchase.
So don't rely solely on the vehicle history report to make your purchase decision...get your purchase inspected too.
Contact a mobile vehicle inspection service like carchex.com and arrange for a mobile vehicle inspection at a nominal cost. There are many good ones out there so do your research and choose wisely. It's important to get the seller's OK to do this first, and then provide the auto inspection service with the seller's contact information.
Confirm seller's contact information. Before you send payment, verify the seller's proper name, full address, phone number(s), email address, etc. You may even want to do a quick background check. You may want to visit netdetective.com where you can do this online. Again, there are a lot of service providers in this field, so do your research.
OK...so everything should match up. Be wary if the seller is located overseas; my suggestion is if you aren't in the international auto business or into buying expensive, exotic foreign cars, then deal only with U.S. sellers. You should be able to find the vehicle you want state-side.
