Buying a car through an auction is a great way to acquire a number of vehicles at reasonable prices. But most car buyers tend to take into consideration only their final winning bid without taking into account an important detail: the location of the auction vehicle.

The location of the auction yard has a great impact on the total price that you will have to pay for your car purchase. The transportation, towing, storage, exportation, and delivery prices can vary depending on the location of the vehicle. Whether you are buying through dealer car auctions, car auctions online, or export cars from auction, you need to know about location-related expenses.

This article will help you understand why the location of the auction yard is important when buying cars from vehicle car auctions and how to calculate your expenses correctly.

Why Auction Vehicle Location Is Important

Although the auction price of a vehicle may make the latter seem like a good buy, there will be changes in the total cost of purchase when logistics come into play.

• For instance, consider two similar vehicles of equal market value;
• Vehicle A, which is located near the buyer or the port of destination.
• Vehicle B, which is located far from the buyer and will require long-distance transport.
• Although Vehicle B has a lower bidding price, it could prove to be costlier due to transportation costs.

That is why potential buyers need to take into consideration the location of the auctioned vehicle.

Transportation Costs Can Change the Final Price

Among the main location-based costs is that of transport.

If you win the online auction, your next step is to transport the car from the auction site to:

• Your home or office
• A car dealer
• A workshop for repairs
• A transportation company
• A port
• An export terminal

Depending on the distance to the destination, transport costs may become very high.

Bidders should plan their transportation costs, particularly when buying cars from remote auction sites.

For cases where the car is not operational due to damage or mechanical problems, you will have to engage professional towing services.

Distance from Major Ports Matters for Export Buyers

Location also plays an even bigger role in purchasing cars to be exported at the auction.

It will be necessary to transport the car from the auction site to the main port for exporting. The distance between the auction site and the port can affect the cost of inland transport.

Costs that export buyers will have to consider include:

• Vehicle transport to the port
• Towing fees
• Loading fees
• Port handling
• Shipping
• Exporting paperwork
• Customs clearance

Buyers should therefore look at the total route taken by the car before buying.

The low price at the auction does not necessarily imply the lowest cost.

Auction Yard Location and Dealer Car Auctions

Car auctions usually have buyers that frequently buy many cars at a time. Location management may thus be an issue that such buyers have to deal with.

While a dealer buys several cars from the same location, the process of transporting the cars may become easier as compared to the buying of vehicles from various locations.

For instance, in the case of a dealer buying many vehicles, the following strategies may help in minimizing transportation expenses:

• Buy several cars from one auction yard;
• Combine transportations;
• Employ one shipping company;
• Organize pickups in an efficient manner.

In buying many cars, even small amounts of money saved during transportations may matter a lot.

In view of the above, dealers must consider location in the procurement of auction cars.

Storage Fees Can Increase Your Costs

The location of an auction yard will also have some bearing on the speed and ease of collecting your vehicle.

After buying a car through a vehicle car auction, you need to be aware of the collection deadline and begin making the necessary arrangements.

If the car stays in the auction yard past its collection deadline, storage or yard fees may become applicable.

The reasons for delay could include any of the following:

• Payment delay
• Loss of documentation
• Logistical issues
• Export problems
• Repairs required

Taking precautions beforehand can save buyers from unnecessary storage fees.

Find out the location of the vehicle before bidding.

Local Buyers and Overseas Buyers Face Different Costs

The effect of location varies according to where the buyer comes from.

For Local Buyers

A car that is close to the buyer may be easier to get. The buyer can calculate:

• Local towing costs
• Fuel costs
• Delivery costs for the vehicle
• Time for collection

For Overseas Buyers

This situation becomes more complicated. For the overseas buyers, in addition to the auction price, the following may have to be considered:

• Inland transport
• Port delivery
• Shipping costs
• Exportation documents
• Custom duties
• Destination country import needs

For overseas clients, the location of the auction vehicle must be determined prior to the bidding.

How to Compare Vehicles in Different Auction Locations

When comparing vehicles, do not simply select the cheapest current bid.

Rather, determine the total estimated cost:

Total Cost of Vehicle = Bid + Fees for Auction + Transport + Storage + Repairs + Shipping + Any Other Costs

For instance, a vehicle that is more expensive but closer to the port of exportation can turn out to be more cost-effective compared to a cheap one far away from the port.

The same method should be used when comparing dealer cars and online car auctions.

Questions to be Answered Before Bidding

Before making a bid, buyers should consider asking:

• Where is the auction vehicle?
• How far is it from the buyer's destination?
• How much will transport costs be?
• Is the vehicle able to drive itself or must it be towed?
• What is the deadline for picking up the vehicle?
• Are storage costs incurred for missing the deadline?
• How far is the vehicle from the export port?
• What sort of shipping will be needed?

Answering these questions in advance can help prevent unexpected expenses.

Why Location Should Be Part of Your Bidding Strategy

The auction process requires taking into account the total value of the car and not just the lowest winning bid.

It is necessary to determine the maximum budget that includes all expenses for the buyer.

In other words, if the buyer has a budget of AED 50,000, then he should not spend AED 50,000 only for the purchase of the car, because some of the budget needs to be reserved for additional expenses.

Such an approach is especially relevant for purchasing exported cars from auction.

How Galaxy Cars Auctions Can Support Buyers

The Galaxy Cars Auctions offers an online platform where buyers can search for vehicles. It assists vehicle buyers and provides various automotive services like vehicle inspection, towing, shipping, and vehicle repair and maintenance.

Such services could be useful in planning the transport of vehicles after they have been bought. Nevertheless, buyers must find out the exact vehicle location, collection procedures, costs involved, and transport plans before bidding.

This is especially true for dealers and international buyers that may be handling several vehicles.

Tips to Reduce Location-Related Auction Costs

These are some measures that one could take to control their costs while buying vehicles:

• Determine the location of the vehicle being auctioned.
• Determine the cost of transporting the vehicle before the auction.
• Compare the vehicles on the total cost of purchasing rather than only the price of the bid.
• Plan for the retrieval of the vehicle before the end of the auction.
• Avoid any possible delays which will lead to extra cost.
• Take into account the distance from the closest export point.
• Arrange for joint transport when buying several vehicles.
• Determine the cost of towing for those vehicles that won't be able to run on their own.

Conclusion

Vehicle location is one of the significant elements in determining the full purchase cost of a car. The lower the price of the auctioned vehicle doesn’t necessarily equate to a better buy if other related costs such as delivery, transport, and exportation costs are taken into consideration.

Regardless of whether you will be joining dealer car auctions, buying cars from online car auctions, or buying export cars from auctions, always consider the location of the auctioned vehicle before making your bid.

By knowing the overall cost of collecting and transporting the vehicle, buyers can make more educated decisions. Through a reliable vehicle car auction site like Galaxy Cars Auctions, buyers can find good vehicles while planning for the logistics to come afterwards.

Always bear in mind that the best auction deal is not the car with the lowest winning bid but the one that provides the best deal once all costs are accounted for.