Wednesday, November 24, 2004

Should I buy my old car at an auction?

Hmm... what to do.


My car was stolen two months ago from my apartment, a 1995 Honda Accord in good condition. Three weeks later, with the car still unrecoved, my insurance company declared it a total loss and gave me a good price for it. Then a couple weeks ago, the car was found--of all places, near Wild Oats on a street called Oakdale, just one block south of California Blvd in Pasadena. (Not only was it found near Wild Oats, but the thieves left an energy drink and a Wild Oats shake in the car!)

I saw the car and removed all my stuff from it as I gave it over to the insurance company. I saw that the mileage changed less than 50 miles, so the criminals didn't go far. The car still runs, and has very minimal damage due to the theft--they just filed down a Honda key and got in through the passenger side. The insurance company, having settled the case with me by paying me out, will be selling the car at an auction sometime soon. But they told me where the auction lot is and the car's stock number so that I could try to buy it if I want. I still don't know what day the auction will be, but probably within the next few weeks.

So my question: Should I try to buy back my old car at an auction? I had not yet bought another car because I was busy and didn't have the time, or didn't want to bother, so I still have the insurance money. The pro argument might say that I could get back my old car for much less than I was paid by the insurance company, and thereby have extra money and my old car back. The risk involved with buying cars at an auction is that you don't know the car's history, whereas I do know my own car's history.

Except for those last 50 miles, which the con argument would rest upon. Sure, the car runs, but is it messed up in some expensive-to-fix way which only taking it to a mechanic would determine? The best strategy might be to have a predetermined price-cap, above which I won't be willing to buy the old car. But either way, it might be exciting to try.

1 Comments:

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11:18 PM, January 28, 2006  

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