Used car contract

WorldGarages

WorldGarages

Administrator World Garage

The American car market is the largest market for buying and selling cars in the world. In the US, there are 800 cars for every 1000 inhabitants. Almost every automaker has special developments aimed at the North American market, and many automotive innovations are developed primarily for the American buyer.
On the territory of the United States have their own production facilities all the iconic manufacturers. Realizing how huge the market is and how high the purchasing power of the average American, this should not be surprised.

American auto market - the largest in the world

Most Americans update their fleet after 2-5 years of operation of the car. This contributes to the excellent credit conditions, when with a good credit history, you can get a loan at 1% per annum. In addition, insurance companies offer conditions under which even the smallest damage can serve as a pretext for the client to get a brand new car.

These circumstances create a precedent in which the us secondary market receives a huge number of cars in very different condition and age, and as a consequence of the large flow — lower prices. Thus, in the US market you can buy a great car at a really low price.

American auctions – what's the difference

The most common way to sell used cars are specialized insurance auctions. As a rule, such trading platforms sell cars with some damage. The volume of daily sales at the three largest auctions is simply amazing-up to 50 thousand cars.

The largest auctions in the US are Copart, IAA-Insurance and Manheim. Each of them has its own characteristics. Copart insurance auction is the largest car auction that sells vehicles "as is". This means that the staff of the auction, when taking the car to the auction, do not conduct any pre-sale preparation and sell in the condition in which it was received. There were cases when the car was bought with a variety of "additions", ranging from the remnants of food, ending with a variety of things left by the previous owners. At this auction, you can pick up the car at the lowest price.

Copart insurance auction

Auction IAA-Insurance is also engaged in the sale of cars that have been subjected to an insured event. Among the lots can be found as a machine "as is" and prepared for sale. The auction has its own staff of mechanics who are engaged in the restoration of damaged cars. As a result, some models of machines can be more expensive only due to the fact that they have been repaired and are fully ready for operation.

Auction IAA-Insurance

Manheim is a closed type insurance auction. The peculiarity of this organization is that only official dealers, as well as accredited companies, have the right to participate in the auction. As a rule, lots in Manheim have no damage, are in perfect condition and do not require any repairs. Due to the limited access and condition of lots, cars from this auction have the highest prices among similar auctions.

Auction Manheim - How to select and buy cars

Most companies are engaged in export of cars at the professional level more than 12 years. During the work, we have worked out the optimal system of search and selection of cars at various auctions. The primary task of each Manager of the company is to bring a good car to the client. The task of "sell whatever" is never worth it.

The main rule of the Manager when looking for a car is to make sure that the car is really in good condition. Search favorites are always cars that have received primary damage and put up for auction for the first time. Such machines are usually in excellent condition, even despite the damage. Another point: the car with the primary damage, almost never has hidden defects, its history is clean, and its documentary history has no pitfalls.

How to select and buy cars

Before entering into trading on a particular lot, the Manager conducts a mandatory check of the car for all available tools. Inspection of the car on the photos, check the car on the national bases of Carfax and AutoCheck. Car search by VIN-VIN number to make sure that the car has not previously been in an accident, not sold at auction and not subjected to cosmetic repairs. If the Manager sees that the car has passed all the necessary stages of verification, he decides to start trading.
But before that, a contract is necessarily concluded with the client, which guarantees the fulfillment by both parties of their obligations. In addition, the client specifies the budget, which is planned to allocate for the purchase of a car, which includes all costs, up to the statement of the car on the account after repair. Based on the amount, the Manager is obliged to name the price of the car at which it will be purchased at auction in the United States.

If during the auction, the price of the lot will exceed the previously indicated budget, the Manager either leaves the auction or agrees with the client to increase the budget for the purchase, but not more than a couple of hundred dollars. Work on search and acquisition does not finish until the desired car that meets all customer requests, will not be purchased in his name.

According to the rules of the company, the client has the right to monitor every stage of the Manager's work. In the process, the client can make adjustments, change the budget or give instructions to find other options.

Payment for the car and the services of the company

Our customers pay the cost of the car and the company's services exclusively through the Bank. Payment for the car is carried out directly to the auction account, in any convenient Bank on SWIFT system. From the moment of winning the lot, the client has 3 days to make the payment, as the delay in payment is fraught with the imposition of sanctions by the auction on the buyer, which is our company. Each auction has its own charging penalties, which ranges from 800 to 1000 US dollars.

Payment for cars and company services

Since the profitability of the conditions that our company provides to its customers directly depends on the status of the company at auctions, we have to insure ourselves against various factors that can affect our reputation. That is why, taking the client's order, we take a security Deposit in the amount that corresponds to the fine of the auction, if the client for some reason decided to abandon the already winning lot, or did not pay for the car in due time. The security Deposit is sewn into the cost of the car.

Thus, the client does not transfer cash, does not transfer funds to obscure accounts, and works on a transparent and secure system that provides 100% security of cash transactions.

The American car market is the largest market for buying and selling cars in the world. In the US, there are 800 cars for every 1000 inhabitants. Almost every automaker has special developments aimed at the North American market, and many automotive innovations are developed primarily for the American buyer.

2019-02-28
WorldGarages
Administrator World Garage
https://worldgarages.com/news?type=articles&category_id=18

Previously

​Car Auction in Canada

Further

How to negotiate a used car

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