Can anyone go to car auctions? The answer can be complicated – yes and no. Let’s take a look at why, and how you can access the majority of vehicle auctions.
When it comes to buying a car, we always look for the best deals, especially on the pricier models and makes. However, when making your rounds and checking out all the local dealerships, the general prices on cars may seem high, or the deals offered just do not seem to be good enough.
If your mind is not completely set on what you want, you might settle for a car being sold by someone individually instead of paying that dealership price tag. On the other hand, you might instead be interested in buying a specific model and after tirelessly searching for that specific model on the local market, your searches turn up null and you have no options laid out before you.
If you find yourself in a situation where you cannot seem to find anything good, you may have an interest in an auto auction. Such auctions are notorious for having good cars being sold at lower-than-market-value prices. Now the question which will be answered in this article is if you can go and participate in these car auctions in the United States.
What are Car Auctions
When one thinks of an auction various ideas pop up including buying high quality for a low price and competitive bidding. In total contrast, auto auctions are auctions geared towards selling various types of cars including, rebuilt, salvage-titled, used, and, even occasionally, new cars (and many other automobile types). In the same way that there exist various types of auctions like merchandise or property auctions, there exist car or auto auctions. That being said, an auto auction is a term that covers many different types of auctions. In such, auto auctions can be split into 2 groups: public auctions and dealer auctions.
Public Auctions
Public auctions get cars or even motorcycles from various sources, including rental companies, insurance companies, individual sellers, and companies replacing their fleet of vehicles. Several rental companies replace their vehicles after three years, and some individuals change cars regularly.
Although it is easy to assume that a public auction is open to the public, most of the time that is not the case. Occasionally some public auctions may have a section or sections that are open to the public, while the majority of the collection of cars is secured for only dealers to bid on.
Dealer-Only Auctions
Dealer auctions are auctions geared towards salesmen. As these auctions are where dealers get their stock, the prices on the vehicles are at a much lower price tag than those found on the dealership lots. That is what makes these auctions so advantageous.
The only way to get in these auctions and be able to bid is to hold a dealer license. Dealer licenses are only obtainable by undergoing a long and complex process that can vary from state to state. This means that unless your life-long dream is to become an owner of a car dealership, it would not be in your interest to take such a long route just to participate in these auctions. But you don’t need to worry because there is another way to get into dealer-only auctions without having to take that long and arduous route. You can use a proxy bidder.
Alternatives for Buyers Without Dealer Licenses
As I mentioned before, there exist online auctions that allow individuals that are not licensed to be able to bid on cars on auction. Now, even though these auctions are held online, the same rules apply. What changes, in this case, is that there are websites like Auto Auction Mall that will serve as an intermediary and supply their own dealer license for individuals like yourself to bid and purchase your own car at an auction value.
How do Online Dealer Auctions Work?
What are also called Proxy bidders (mostly online dealer auction sites), these sites function as the intermediary between the seller at an auction and the interested buyer. A proxy bidder like Auto Auction Mall already holds a dealer license, which gives them the legal right to participate and purchase vehicles at dealer auctions. What they do, then, is give you access to the auction inventory, letting you select the vehicle or vehicles you are interested in. They will then bid on your behalf, up to the maximum bid you have set.
Further Reading
- Rebuild Vehicles: Buying at Insurance Salvage Auto Auctions Online
- What does the Manheim Market Report (MMR) mean in Car Auction?
- How Car Dealers Make Money When You Trade-In Your Car
- How Car Dealers Make Money When You Trade-In Your Car
Depending on the proxy bidder you selected, the process can be more or less smooth for you. On Auto Auction Mall, for example, you have expert professional support to streamline the whole process from bidding to purchasing to insuring, which makes the whole experience a lot less stressful for the buyer.
Why Auto Auction Mall is a Good Choice for an Online Car Auction
Auction Auto Mall has one of the largest databases filled with used, like-new, pre-owned, and salvage cars. You can search for any type of car, make, or model you want using the available search functions located on the website.
Many consumers rate AAM higher than other sites because of the extensive database of used cars offered. The best quality customer service is offered to anyone and their representatives are available to help you at any time. The representatives at Auto Auction Mall will walk you through the process, help you to bid, and make sure to acquire the vehicle you want without any hassles or headaches.
Another plus side to AAM is that they have financial advisors ready to work with you and help you finance the vehicle you choose. Offers made include low down payments, low-interest rates, and some of the best deals available on an online auto auction site to date.
When buying vehicles from an auction, whether new, used or salvage, it is very important to learn as much as possible beforehand. If you are not a specialist, then it is highly recommended to consult someone that can give you insight into the condition of the car you are interested in. If you do happen to not know anyone that can do so, then I recommend you get in touch with the experts on Auto Auction Mall, and they can answer your questions regarding bidding and choosing the right car. Good luck with getting the car you want!
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