How does the process work?

Once we know the range of vehicles that you are interested in, we will give you a list of the different ones available at the auctions or dealers near you. At a minimum, this information will include year, mileage, exterior and interior color. The best thing is to be as flexible with these details to allow us to buy you the vehicle with the best value. After the vehicle is purchased, the paperwork and a temporary license plate will be mailed to you. In addition, a temporary receipt/buyer’s order will be emailed to you to allow you to take care of insurance and financing (unless you’d like us to help with financing). At this point, please mail us a check for the total amount due. If you are financing with us, please mail a check for the amount of your down payment. We are happy to do your financing for you with our bank network or you may finance on your own in your area. After you receive the permanent paperwork and temporary license plate, you will then be able to go to the auction to pick up the vehicle.

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How does the pricing work?

Based on past auction data and information on what these vehicles are selling for in your area, we will be able to predict the auction price to within about a $500 range. In most cases, we will be right in the middle of that number. In some cases, it can go to the top, and in rare cases, even higher. We just need to know when you want us to stop bidding because it is no longer the best offer. On a dealer owned car, we can tell you exactly how much it will cost.

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How can you ensure the quality of the vehicle?

The first thing we do is read a pre-auction inspection report that will tell us any dents, dings, or scratches on the vehicle and their severity. The inspection also gives an overall rating of the vehicle's condition. Many vehicles that we buy sight-unseen are under factory warranty. In those cases, if there is an unseen mechanical problem, the manufacturer will fix the problem at no cost to you. On vehicles that are not under factory warranty, if you desire additional protection, we have warranty options listed below. Purchasing a vehicle directly from our inventory in Richmond, IN - or arranging for the vehicle we purchase for you to travel through Richmond - is a great way to ensure that a vehicle has been inspected and serviced. See the appropriate vehicle inspection checklist for more information:

Vehicle Checklist: Under 100,000 miles | Vehicle Checklist: Over 100,000 miles

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I’ve heard that vehicles at auctions are junk. Is this true?

This is a common misconception, primarily because small local auctions can be that way. However, almost all of the vehicles that we purchase are coming straight out of rental or lease and are low-mile, well maintained, low risk vehicles. You may not know it, but these are the exact vehicles that end up on the lot of your local car dealers. The only difference will be that they may have had a few small dent repairs and will be charging quite a bit more than we will.

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What details will I know about the car?

In addition to the basics mentioned above, we would be happy to provide a detailed options list and any dents reported on any vehicle that you are particularly interested in from the original list.

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Am I able to see/drive the vehicle before purchasing?

If you are buying something from our inventory in Indiana, of course you can. But if we are getting it at another dealer or at an auction, you cannot. On some of the vehicles, we can get pictures, but you have to be a dealer to go into the auction.

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What if I pick it up and something is wrong with it?

If the vehicle is under factory warranty, any mechanical issue will be fixed by any dealer of that manufacturer. As far as condition, we counsel people to be prepared to spend $200-500 reconditioning the vehicle. Considering that you’re most likely saving over $1000 by purchasing this way, this is still well worth it. Most people pick the vehicle up and spend only $5 on a car wash and are completely satisfied. However, some find it necessary to get the vehicle detailed (around $100) or take it to a paintless dent repair shop (approximately $50/dent) to remove a few dents. If damage is more significant than $500 and we were not aware of this, we will work with you to get the issue resolved. In the end, we will ensure that you are still better off financially by choosing us over your next best option. If the vehicle is an absolute disaster, you will not be forced to purchase.

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What kind of warranty options do I have?

We have developed a list of warranty options that are available on almost any vehicle:

Factory Warranty

This is by far the best available option. Most vehicles are 3 year / 36,000 miles, but some now have 4 year / 50,000 warranties. In this case, any car you buy from us or pick up at an auction is covered bumper-to-bumper at 100% of any problems. The major things not covered by most factory warranties are: brake wear, tire wear, or accident damage.

Auction Warranty (if you are picking up directly at an auction)

For $100 for 7 days or $125 for 14 days, an auction will offer us a warranty against major mechanical issue and even frame damage discovery (from a previous accident). If you are picking this vehicle up at an auction and it’s NOT covered by a factory warranty (and we haven’t inspected it), we would highly recommend at least getting this option.

Extended Warranties

MATS can sell you an extended warranty from one of a number of reputable warranty companies we work with. Click on the Finance & Warranties link for more options.

30 day 50/50 warranty (<100k miles)

All vehicles that we sell that are out of factory warranty but have less than 100,000 miles come with a 30 day / 1,000 mile “good faith” warranty. In other words, if something breaks on the vehicle (or was broken when you got it and we missed it) within 30 days, we will in good faith work together to resolve the issue. Operating on very small margins as we do prohibits us from making the same kind of promises a regular dealer can, but we certainly want to make sure that at the end of the day, you were better off going through Covenant Autos than any other source.

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Can Covenant Autos help me with financing?

Yes, we work with several banks in our area that give us very good rates. It also makes the paperwork that much simpler – you’ll receive all the paperwork at once for the purchase and the financing and won’t have to be dealing with 2 separate groups.

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At what point am I financially committed to a vehicle?

After you give us the word to purchase the vehicle on your behalf.

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Can I buy an inexpensive/high mile vehicle at an auction that isn’t close to Indiana?

You can, but we strongly recommend against it. This would certainly be a way to get a high-mile vehicle for a lower price than you could elsewhere, but we could not vouch for the mechanical quality whatsoever. If you are willing to take on 100% of the risk, we are happy to purchase for you.

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Am I required to pay sales tax?

You will pay Indiana sales tax (7%) if you pick up the vehicle in Indiana and will receive a credit for the amount paid when you go to the BMV to register and pay tax in your state. If you pick up out of state, we will issue a document stating you did not take delivery in Indiana and therefore will not be paying Indiana sales tax. You will then pay the full amount of your state’s sales tax when you register.

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