Penny auctions online can be great places to get good deals, but they can also be money traps if you do not know how to use them properly. There are a lot of pros and cons to this system that you should take into consideration before you start to use a penny auction site. Here is a look at what those pros and cons are so you can decide what you want to do for yourself.
An obvious pro is that you can get a really cheap rate on a product if you win the auction. You can buy a $500 Apple product for $15 online and obviously save a ton of money on the base unit, even after paying shipping.
Another pro is that you can setup automated bidding to work when you are not around so you can still get a good deal even if you’re away. The bids will go up a penny at a time, and you can set your system to bid in that process just as you want it to.
A con of even the best penny auction site is that it is risky to use. If you invest 30 bids in an item that you do not even win in the end, you can toss a lot of money around that you get nothing from.
You also can’t tell if the product you are buying is fake until you actually see it in person. You have to trust the auction holder without many other options. If you can do that though, you may be able to score a good deal or two from the penny auctions you participate in.