A car auction can be the place to find yourself a bargain. It should not be surprising, therefore, that so many people buy their next car at auction. What, though, must you do in order to get the bargain of your dreams? The following five tips can help you to succeed:

1. Go to an auction without bidding, or watch a video of one so that you are fully conversant with how the auction system works.

2. Decide on which car you are going to bid on and do your homework to make sure you know the auction value. Look carefully at the car! Unless you are a mechanic, it's a good idea to take one with you.

3. Check you know how much you will have to pay, including the buyer's premium. You will regret exceeding your budget if you allow the feverish atmosphere of the auction to tempt you to do so!

4. Opting to bid against as few rival bidders as possible is a sound strategy. Try, if you can, to avoid bidding at weekend or evening auctions; weekday auctions are less well attended.

5. Consider getting second hand car warranty and car depreciation cover for your auction car. In case those two terms are new to you, there are more details below. You may not find insurance thrilling but being insured can relieve you of a lot of worry. Once you have bid at an auction you are committed and usually have no chance of retracting.

used car warranty

One in three cars between four and nine years old will break down every year and, as everyone knows, most repairs are expensive. Thus a new head gasket or clutch can cost not far short of £400 whilst the cost of a replacement gearbox or turbo might cause you to faint! That's why a used car warranty makes sense. Of course, you can take the risk and pay for the repairs as you go along, but that can work out very expensive if the worst should happen.

Second-hand car warranties vary according to the type of cover you go for as well as other factors such as the make of car, its age and the mileage. But remember this, the cost of just one year's cover could pay for itself if you have just one breakdown!

car depreciation cover

This type of policy is a very clever buy for those in the know. But what exactly is it? It's a policy whereby a specialist insurance company will recompense you for the total loss of your car in an accident. Unfortunately, this is highly unlikely to be the amount you actually paid for it. This is the reason for the existence of gap (Guaranteed Asset Protection) insurance. New car depreciation starts the minute you drive it off the forecourt. Not all cars depreciate at the same rate, so bear this in mind when bidding for the older car you are likely to find at an auction.

If you have car depreciation cover, then you will receive the difference between what you bought it for and what it is worth at the time of the accident - so the insurance covers the 'gap' between the two prices. The relative cheapness of such insurance could surprise you.