Auto auctions sell cars to the highest bidder, with sources including government surplus and seized vehicles, repossessed cars, dealer surplus, and private sellers. Buyers should inspect cars and be prepared to pay a deposit, transport fees, and have no warranty or guarantee. Auctions can be held online or in person.
Auto auctions are events where cars are sold using the auction method, with buyers placing bids and cars being sold to the highest bidder. Some auctions are open to the public, allowing anyone to attend, while others may be closed. Auto auctions can be a great way to buy a car on the cheap, for people who are familiar with cars and know what they’re doing. People who lack experience may find themselves making an unwise purchase at auction.
Stock at an auto auction can come from a number of sources. Government auctions include surplus government vehicles being sold, along with cars that have been seized by government and law enforcement. Auto auctions can also include vehicles repossessed by salvage companies, cars donated to charity, dealer surplus cars, or cars from private sellers who have decided to sell their cars at auction.
Attendees at a car sale typically have the opportunity to examine the cars offered for sale, but may not be allowed to drive them. Visual inspection gives buyers the opportunity to determine if the cars have any major problems and sometimes there is information available about the car. This information may include service records or an appraisal from a mechanic, depending on the type of auction. In other cases, inspection may not be allowed as buyers blindly bid on cars at auction.
Buyers may be required to put down a deposit to bid on the auction, ensuring they have the funds to back up their bids. In all cases, once an offer is accepted, the buyer must immediately present the money to claim the car. Some auctions arrange transportation and shipping on request, usually for a fee, while others expect buyers to drive the cars off the lot. The cars are also provided without warranties, which means that if problems develop with the car, the buyer cannot file a complaint with the company that ran the auction. Titles may still have liens on them, and cars don’t necessarily pass smog tests.
Bids at an auto auction vary widely. Specialty auctions, such as classic car, luxury car or charity auctions, can feature very high-quality vehicles, along with an opportunity for people to inspect the vehicles and receive full information about their service records. Government car auctions can include a range of vehicles from unreliable government vehicles retired after a period of service to new top-of-the-line cars seized from drug dealers. If possible, buyers should examine cars prior to purchase, preferably with the assistance of a mechanic.
Auction formats also vary. Some auto auctions are held online, allowing people to bid from anywhere. Others require bidders to be present in person, and some auctions offer a combination of bidding options, such as telephone bidding.
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