Finding a fantastic deal on a car at an online auction can be an exhilarating experience. As a first-time bidder on AutoBidMaster’s online auctions, navigating the online auction process might feel daunting. The difference between preliminary bidding and live bidding can be a bit confusing at first. In this article, we’ll explain the difference between the two bidding methods and show each of their advantages and disadvantages.
What is Preliminary Bidding?
Preliminary bidding, also known as proxy bidding, allows you to place a maximum bid on a vehicle before the live online auction even begins. This lets you set your spending limit in advance. The system will bid for you automatically, and will only bid up to your maximum amount.
Here’s how preliminary bidding works:
- Find the Vehicle: Before the auction even begins, find the vehicle you want to bid on by browsing through the online auction inventory.
- Set Your Maximum Bid: After factoring in estimated repair costs, titling and registration fees, and any other costs such as transportation, insurance, etc, set your maximum bid – the highest amount you’re willing to spend on purchasing the vehicle.
- Submit Your Proxy Bid: On AutoBidMaster’s online platform, you can enter your maximum bid amount. This becomes your proxy bid.
Once your proxy bid is in place, the online auction system will automatically enter bids on your behalf during the live auction. It will enter bids incrementally, so you don’t have to worry about not getting the best deal possible.
Benefits of Preliminary Bidding:
- Convenience: Many people use this bidding method because they don’t have to be present during the auction. Once you set your bid, you can go on about your day as usual.
- Focus on Multiple Auctions: IF you have your eyes set on different vehicles, you can use preliminary bidding so you can participate in multiple auctions at the same time.
- Discipline: The auction process can be very exciting, and it’s easy to get swept away in the bidding process. Setting a maximum bid ensures that you will stay within your budget.
Drawbacks of Preliminary Bidding:
No Real-Time Adjustments: Once you set your proxy bid, you can’t adjust it during the live auction unless you cancel it and re-enter a new bid amount. This can be a disadvantage if the bidding activity is less competitive than expected.
What is Live Bidding?
Live bidding is basically the online equivalent of bidding in a traditional in=person auction.You must be present during the online auction in order to participate. You wil
Here’s how live bidding works:
- Join the Live Auction: You’ll simply login to the auction platform to join the auction when it starts.
- Monitor the Bidding Activity: The platform displays the current bid amount along with the number of bidders. You’ll also see a countdown of how much time is left in the auction.
- Submit Your Bids: As the auction progresses, you’ll submit your bids as you compete with other bidders.
Advantages of Live Bidding:
- Real-Time Adjustments: You’re able to adjust your bids based on the competition. For instance, if bidding is less active, you might time your bidding closer to the end of the auction.
- Sense of Control: Live bidding offers a sense of control and excitement throughout the auction process. You can see how your bids compare to others and make strategic decisions in real-time.
Disadvantages of Live Bidding:
- Requires Active Participation: You need to be present and focused during the live auction to participate effectively. This can be inconvenient if you have scheduling conflicts.
- Potential for Bidding Errors: The fast-paced nature of live bidding can lead to accidental mistakes. It’s crucial to be mindful of your bids and stay within your budget.
- Emotional Bidding: The excitement of the live auction environment can sometimes lead to impulsive bidding decisions that exceed your budget.
Choosing Between Preliminary Bidding and Live Bidding
The best bidding method for you depends on your individual circumstances, preferences, and risk tolerance. Here’s a breakdown to help you decide:
Use Preliminary Bidding If:
- You have a strict budget and want to avoid the temptation of overbidding in the heat of the moment.
- You have scheduling conflicts that prevent you from actively participating in the live auction.
- You’re interested in multiple vehicles and want to participate in several auctions simultaneously.
Use Live Bidding If:
- You’re comfortable with the fast-paced environment and enjoy the excitement of real-time bidding.
- You want the chance to potentially secure the vehicle at a lower price by strategically placing bids based on the competition.
- You prefer to have more control over your bids and want to make adjustments throughout the auction process.
Additional Tips for Success in Online Auctions
Regardless of whether you choose preliminary bidding or live bidding, here are some additional tips to increase your chances of winning a vehicle at a great price in an online auction:
- Research the Vehicle: Thoroughly research the specific vehicle you’re interested in, including its model year, mileage, condition, and typical market value. Review the online auction listing details and vehicle history report (if available) to understand the vehicle’s background and potential repair needs.
- Set a Realistic Budget: Before you start bidding, determine the maximum amount you’re willing to spend on the vehicle, considering not just the purchase price but also estimated repair costs, registration fees, and potential insurance costs. Stick to your budget to avoid overspending.
- Inspect the Vehicle (if possible): If the online auction platform allows, try to inspect the vehicle in person before bidding. This can help you get a better sense of its condition and identify any potential issues that might not be readily apparent in photos.
- Understand Auction Fees: Be aware of any additional fees associated with participating in the online auction. These can include buyer’s fees, transportation fees, and document processing fees. Factor these costs into your overall budget when determining your maximum bid.
- Bid Incrementally: When live bidding, avoid placing large bid increases. Instead, submit smaller, incremental bids to gradually increase your offer and avoid accidentally overbidding.
By understanding the differences between preliminary bidding and live bidding, and following these additional tips, you can approach online car auctions with confidence and potentially find the perfect repairable vehicle at an exceptional price. For a more comprehensive understanding of the online auction process at AutoBidMaster, visit our Help Center.
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