The current sub-prime mortgage and credit issues are all we seem to be hearing about, almost on a daily basis. But it may have a definite impact on the Car Auctions industry in the not too distant future, if not already.
The impact could be felt in two different ways, and it's not clear whether or not they will balance each other out. One thing is certain though, and that is that there will be some great buying opportunities for those able to take advantage of them!
The first thing to think about is that the availability of finance and credit has tightened up a lot recently. This means that for those folks who were intending to get bank finance, to fund their next car purchase from the car auctions, they may find that they no longer qualify. This in turn could mean less bidders and therefore less competition for you at the Car Auctions.
The flip side is that for those people who financed a Car with organizations that were happily handing out loans to almost anybody. These people may find their loans being recalled (depending on the original terms and conditions of their loans) as the loan providers get into difficulty themselves.
The thing is, we could have the situation arise where there are more vehicles being offered for sale by auction and less people bidding, due to their inability to secure the needed finance.
We may even begin to notice a lowering of the quality of the cars being offered for sale at some of the auctions. It is really important that you don't just rush out and buy at the first car auction you attend. Take the time to do the proper research, as outlined in our Free Guide Book & Buyers Checklist, to make sure you get the best possible deal.! You need to constantly be aware of how the retail market prices are being affected by the lack of credit and auto loan foreclosures.
Less likely to be affected by the current credit squeeze are the Government and Federal Car Auctions. The reason is that the main source of vehicles for these auctions comes from expired leases and seized cars, usually from criminal activities.
Overall, the current credit squeeze may present some great buying opportunities for those bidding at the Car Auctions. With a little patience, good research, and commonsense, it's probably going to become even easier for you to afford your dream car.!
Get the newly updated Guide Book & Buyers Checklist with secret tips and resources to help you win at the Car Auctions, Free Now for a limited time from www.AutoAuctionsGuy.com
Happy Motoring
The Auto Auctions Guy
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