How Does Auto Auctions Work

Advantages of Buying a Car at Auction

An automobile purchased through an auction has a number of significant perks and is more comfortable. Buyers of cars have the benefit of looking over a wide range of models and brands all in one location at an auction for cars.

A car auction provides an unique opportunity to purchase an automobile. There's no requirement for price negotiations, as when purchasing a car direct from a dealer or private seller. Due to the high-stakes nature of the bidding process , and the absence of any overhead costs that come in running an auto auction house as opposed managing a typical dealership that has salesmen. Prices tend to be much lower than those obtained at other places. Additionally, as many auctions provide warranties on the cars they sell potential buyers may feel secure in their purchase because they are aware of some options available to them should the vehicle they purchased is damaged in the future.

How Does Auto Auctions Work

Frequently Asked Questions

Public auctions provide no warranties or guarantees. Banks, on average, have the best inventory at the best prices. According to Edmunds, these are the vehicles to look for at public auction. They are usually repossessed cars and trucks that the lender simply needs to sell for a profit in order to make up for losses.

GREEN LIGHT: Indicates that the vehicle is subject to the auction's arbitration provisions. Any vehicle selling for $3,000 or less is sold AS-IS and cannot be arbitrated for any reason other than an odometer or title discrepancy, regardless of the light.

Most of the vehicles auctioned are government surplus vehicles. This happens when different government agencies purchase new vehicles, and they need to dispose of the old ones. Other vehicles in these auctions are also government-seized vehicles that have been confiscated for various reasons.