Car auctions have been gaining in popularity over the recent years. So it’s no wonder more and more private buyers are asking the same question. How do car auctions work? To start with, there are initially two types of auctions: public and closed auctions.
Public auctions are open to anyone and there you can find cars ranging from old beaten up heaps of metal to new vehicles. Overall, the quality of these cars can be poor, which is why it is advisable to have someone with you who can inspect the car and who knows what they are looking at. Public auctions are often used by private sellers, auction companies, dealers, even the law enforcement to dispose of their vehicles.
Dealer auctions are a bit different. Only those who have a dealer’s license can attend these auctions. This is where either new or almost new cars are sold. There are ways for private buyers to attend dealer auctions as well, but that is a completely different topic.
How do Car Auctions Work?
So how do they work? You can either attend in person or try an online car auction. Cars are listed with a starting price. If you are interested in a car, after inspecting it, you can set your maximum bid, and once the car hits the floor and comes up at auction, the car bidding process begins. You must know that there can always be more potential bidders on any given car so expect multiple bids and for the starting price to go up. But as long as you stick to your maximum budget, you should not have issues with overspending. If you don’t buy that exact vehicle, another one may come across soon enough.
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Attending auctions in person can be a bit hectic and overwhelming for a first-time buyer, so online auctions are maybe a better choice. In addition, online auctions allow you to set your search parameters only to show you the cars you are interested in. You can also set the maximum budget, and the bidding can go without you.
If you have placed the winning bid, the car is yours. However, there are certain auction fees to look out for, but this can always be researched and asked for beforehand so you can include it in your budget. The rules for auctions are pretty straightforward. You find a car you like, you research, set your maximum bid, you bid and you buy. And yes, auctions are where your local dealers buy their inventory, which means that the prices at auctions are way below that.
Salvage Auto Auctions Buyer’s Guide
Insurance companies usually assign salvage titles to cars when they decide that repairing them isn’t worth the cost to the owner. Once the car is retitled as salvage, it is sold to a rebuilder who repairs it and will auction salvage cars for auction car bidding. It is usually given a salvage title after it has been repaired.
Make sure you understand what salvaged cars are before you buy one at a salvage car auction. You should also be aware that you may need a different car insurance company than the one you use now. If you drive your car hard, salvage auto auctions can save you a lot of money, making it an excellent purchase.