Have you ever wondered why truck motor auctions in Boston MA offer cheap deals? If so then you are not alone. Most people who ask this question have never attended an auto auction before or simply don’t understand why and auction is different than any other method of buying a truck. There are several unique characteristics that an auction provides buyers which are not available through any other method of purchasing a truck. Binder standing these characteristics, you will quickly see why truck motor auctions in Boston consistently report cheap deals for truck buyers.
1. The Trucks Are There for a Reason
Simply put, cars and trucks are added to auctions for a reason. It is because they could not be sold at the price the owner wanted to get for them or they did not sell quick enough. It is important to not confuse this with thinking that the trucks did not sell because they are low quality. In fact, you can find fairly new trucks at repossession auctions with less than 20,000 miles which sell for well below the market rate.
If a truck couldn’t be sold at the price the owner wanted, then it likely came from repossession. Lending institutions will normally try to sell the trucks they repossess for one to three months. In most cases, they will not be open to much negotiation and their prices based upon the amount of previous loan which was unpaid. If someone bought a new truck and had a repossess six months later than the lending institution will be asking about the same amount as a new truck dealership. As a result, most people are going to spend that much money and the bank will send it to auction.
If the truck is being placed at auction because it not sell quickly enough then it could have come from a variety of places including used truck dealerships, lending institutions, private sellers, or could be previous fleet vehicles. Big businesses and government entities which maintain a fleet of vehicles will almost immediately turned to an auction setting in order to get rid of them. This is because they are selling those vehicles specifically to liquefy their assets. When liquefying your assets, the longer the asset stays static, the longer you do not have cash to expand your business, pay bills, or purchase new fleet vehicles. This makes quickly selling them essential, even if it means they are sold for a lower price.
2. The Auction House Always Wins
Another reason that truck motor auctions in Boston MA offer cheap deals is because the auction house always wins. If someone wants to get their truck listed and it doesn’t sell, the auction house still gets a listing fee. If it does sell, the auction house gets the listing fee plus a percentage of the total sale price. This means that there is no incentive for the auction house to turn down a bid. The only way your bid would not be accepted is if the owner of the truck set a reserve. A reserve it is the minimum amount they would accept for the truck. The best part is that even if you do not meet the minimum bid, you can still negotiate with the seller after the auction closes to pay a price close to your original bid.
Another reason auction houses like to have cheap deals for their trucks is because it makes advertising easier. Auction houses love to tell you how much you’re going to save on a truck because that means more people will show up and bit the next auction. While that does mean you may gradually see more competition, that doesn’t mean your competition will actually be bidding on the same truck you are. At many auctions, a few featured trucks will get a majority of the attention which gives you an opportunity to get cheap deals on the other trucks which were listed.
As you can see, there are two driving forces behind the growing number of cheap deals on used trucks at Boston MA truck motor auctions. First, the trucks are there to be sold quickly, even if that means it is at a price significantly lower than the market value of the vehicle. Second, the auction house wins regardless of how much you pay. This means they have no incentive to drive up the prices and make your truck more expensive than it needs to be. All you have to do is be willing to pay bid increment (ranges from $1 to $50) more than anyone else interested in the truck you want.