Author Topic: Help me buy a car at a auction!  (Read 4664 times)

teltic

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Help me buy a car at a auction!
« on: June 22, 2015, 10:48:59 AM »
Hi everybody!

I need a car.  Theres a GSA auto auction (government cars sold at auction) tomorrow in Salt Lake City.  I've attached a spreadsheet for 9 cars I'd be interested in buying.  I've checked the ratings for these cars & how much they are currently going on craiglists. 

After thinking about it... Is this good for my mustache? Looking at how often I go get gas, I refill an average of every 2 weeks. I currently drive a 2007 Chevy Malibu.  30 mpg average.  My tank is a 12-13 gallon tank so I'm driving 360 miles a week.  You're probably thinking, "why are you buying a car if you already have one?".  I'm helping my brother (selling car to him) who will be coming home within the next month.  I'd also like a new car okay?  Dammit I'll admit it!

They are 2-3 years old.  So a lot of depreciation has been taken by the government (thanks Obama).  I feel like most depreciation of car is during the first 5 years, so I have a hard time thinking I will still take a big hit for the next 2-3 years.

Long story short, 10k on a 2-3 year old car to drive 360 miles a week.  How smart/dumb am I?
« Last Edit: June 22, 2015, 10:50:32 AM by teltic »

teltic

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Re: Help me buy a car at a auction!
« Reply #1 on: June 22, 2015, 11:05:47 AM »
Further questions would be...

Insurance:  Liability or Full coverage?  I would like to do liabiltiy only to save money, but maybe since its is a little more expensive of a car I should do full for a year or two?

Payment:  Pay in full or get a loan & invest?  I have enough in the market to pay in cash, but is that smart?  I believe if I get a loan I have to get full coverage insurance.

forummm

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Re: Help me buy a car at a auction!
« Reply #2 on: June 22, 2015, 11:08:57 AM »
How confident are you that you'll be able to tell whether there are mechanical conditions with any of these cars? Who knows what you'll be getting. Some may have been barely used. Some may have been really abused.

teltic

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Re: Help me buy a car at a auction!
« Reply #3 on: June 22, 2015, 11:13:14 AM »
That is true.  I will be able to inspect them today ( I plan to do so after work).  I will not be able to drive them, but I will be able to turn the engine on and sit in the car.  I believe that risk will drive the price below the blue book value.  I'm not very car savvy, so I think if anything this will be an advantage for me, since others will not be able to drive them as well...

Higher risk, but I believe the lower price will be worth it.  I bought my current car (2007 chevy malibu) this way... Which has turned out good.  For some reason I feel more confident that they have been driven & maintained by the government...

I guess the real question is paying $8-10k on a car worth it?  Less repairs for me... But maybe a $5k car with 100k miles is more mustashian?

forummm

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Re: Help me buy a car at a auction!
« Reply #4 on: June 22, 2015, 11:27:41 AM »
Maybe the cars that aren't 3 years old yet will be under warranty. Do you know what the in service date is (when the warranty begins)? It can be months later than the date on the driver door well (the manufacture date).

teltic

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Re: Help me buy a car at a auction!
« Reply #5 on: June 22, 2015, 11:40:42 AM »
Hmm, good question.  Is there a way to find out?  Is it typically the manufacture date on the door panel?


Looking at each cars warranty, they are transferable 5 year/ 60,000. 

dudde_devaru

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Re: Help me buy a car at a auction!
« Reply #6 on: June 23, 2015, 06:02:33 AM »
The Murica govt uses a Hyundai? :O

forummm

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Re: Help me buy a car at a auction!
« Reply #7 on: June 23, 2015, 07:04:39 AM »
Hmm, good question.  Is there a way to find out?  Is it typically the manufacture date on the door panel?


Looking at each cars warranty, they are transferable 5 year/ 60,000. 

Maybe the cars that aren't 3 years old yet will be under warranty. Do you know what the in service date is (when the warranty begins)? It can be months later than the date on the driver door well (the manufacture date).

CmFtns

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Re: Help me buy a car at a auction!
« Reply #8 on: June 23, 2015, 07:42:25 AM »
Are these like corporate cars that government employees drive?

If so I doubt they are abused and probably have perfect maintenance records. Usually companies will record mileage very often and then get maintenance right on the dot.

Also, I cant Imagine some old public school board official drifting and doing burnouts in his bad ass government issued Hyundai Elantra.


teltic

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Re: Help me buy a car at a auction!
« Reply #9 on: June 23, 2015, 08:35:32 AM »
Yes these are all government employees driving this.  I'm with you on that I don't see them abusing these cars, and you'd think they would regularly maintain them.


The auction is in 4 hours... I plan to go, but still can't decide whether I should get one.  My thoughts are...

1. Should I buy a 3 year old car at auction for less than blue book.... or buy a 5 or 6 year old car knowing the major depreciation is over (although there could be more repairs)
2. If I buy the car, do I get a loan?  2.5% is what I'll get.
3. Liability only or comprehensive insurance? 

If I choose liability only, I don't think I can get a loan.

teltic

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Re: Help me buy a car at a auction!
« Reply #10 on: June 23, 2015, 08:36:37 AM »
The Murica govt uses a Hyundai? :O

I'm just as surprised. Ha!

GoldenStache

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Re: Help me buy a car at a auction!
« Reply #11 on: June 23, 2015, 08:38:30 AM »
I'm with you on that I don't see them abusing these cars

Highly disagree.. Ride them hard and put them away wet.

forummm

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Re: Help me buy a car at a auction!
« Reply #12 on: June 23, 2015, 08:52:38 AM »
It's easy for people to get caught up in the emotions of auctions. I regretted the only 2 things I've ever bought at one. Stay cool and only go for what you want at a price that's a really good deal for a car you've examined thoroughly. There's no problem in walking away with your cash in hand.

Elderwood17

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Re: Help me buy a car at a auction!
« Reply #13 on: June 23, 2015, 09:13:31 AM »
Are these like corporate cars that government employees drive?

If so I doubt they are abused and probably have perfect maintenance records. Usually companies will record mileage very often and then get maintenance right on the dot.

Also, I cant Imagine some old public school board official drifting and doing burnouts in his bad ass government issued Hyundai Elantra.

Agree.  I have a BIL that has bought government fleet cars in the past with good success.  The key is if the vehicle meets your overall needs and is consistent with your overall car expense goals.

teltic

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Re: Help me buy a car at a auction!
« Reply #14 on: June 24, 2015, 08:22:13 AM »
Welp, bought a 2013 Hyundai Elantra for $9300.  Blue book was around $10,500... I'm tempted to just flip it and make that 1k & downgrade to a crappier car... haha!  I've never spent so much on something!  Shaved a bit of my mustache off. haha

Jeremy E.

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Re: Help me buy a car at a auction!
« Reply #15 on: June 24, 2015, 08:42:02 AM »
Welp, bought a 2013 Hyundai Elantra for $9300.  Blue book was around $10,500... I'm tempted to just flip it and make that 1k & downgrade to a crappier car... haha!  I've never spent so much on something!  Shaved a bit of my mustache off. haha
Congrats, 38MPG! I'd go with liability insurance.... I always go with minimum insurance... preferrably none when it's an option. Insurance companies aren't trying to save you money, they are trying to get as much out of you as possible.

Mirwen

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Re: Help me buy a car at a auction!
« Reply #16 on: June 24, 2015, 10:00:27 AM »
I have a 2013 Hyundai Elantra GT (hatchback) and I absolutely love it.  It's the perfect car for me.  It's not exactly mustachian, but I value avoiding repairs more than most.  I think you'll be very happy with the car if you decide to keep it.  I wouldn't put too much stock in the KBB value, but you could probably sell it for what you paid for it so you didn't overpay.  Let us know if you decide to keep it we want to hear what happens!

tvan

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Re: Help me buy a car at a auction!
« Reply #17 on: June 24, 2015, 10:16:40 AM »
Are elantras reliable?

teltic

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Re: Help me buy a car at a auction!
« Reply #18 on: June 24, 2015, 11:03:24 AM »
Chances are I'm keeping it.  Just a big purchase for me!  Figuring out the last details....

Liability & pay in full vs comprehensive insurance & loan

$9300 + $30 per month vs. $9300 loan at 2.5% + $60 per month.

(60*12)/9300 = 3.87%

Basically, I'm down to should I get a loan and invest my $9300 (if my calculations is accurate, I just need a (3.87 + 2.5 = 6.37%) 6.37% returns in the market to break even or just pay it off and do liability.

My calcuations doesn't have any value on comprehensive insurance, other than I have to pay more. haha.

I think I'm leaning on just paying it off & do liability only.  There is market risk I'm not considering... But there's also the risk of crashing my car I'm not considering either...