- A car auction is used by many different entities. Governments use a car auctions to sell impounded cars. Individuals use this forum to sell unwanted cars. Dealerships sell trade ins and purchase cars from the auction and individuals purchase from car auctions, hoping to get a good deal on a vehicle. A car auction can also be set up at car shows, so that people may buy and sell hot rods, street rods, antique and other collectible cars.
- In a private auction, there is often an auction fee for the seller. The fee is determined by the auction house. Fees are collected whether the car sells or not. There may be a percentage fee due to the auction house (from the seller) if the car sells over the reserve price.
- If the auction is a government auction, the cars are lined up according to the list. The auctioneer moves from car to car, up and down the rows, auctioning off each car. If the auction is a private auction, auction house employees help the owners to line the cars up according to the auctioneer's list. The cars are driven or pushed in front of the bidders. In both cases, the auctioneer has a card with the car's information on it. He reads the information from the card, then starts the bidding process.
- Once a car comes in to be auctioned, it is checked over by auction personnel. The car is checked for any problems, such as brake problems, suspension problems, other engine problems and transmission issues. Auction personnel will then put a reserve price on the car based on the year, make, model and the problems, if any, with the car. If the auction is being held at a car show for specialty cars (as outlined above), this step is skipped--the car owner is responsible for setting the reserve, repairing and cleaning up the car.
- Each car is then assigned a number. A list of the numbers is given to the auctioneer, who then calls the cars off in the order of his list. The auctioneer will start lower than the reserve and take bids, trying to drum the price of the car up between bidders. It is the auctioneer's job to get the highest price he can for the car. If the bidding does not hit the reserve, the vehicle is not sold that day. In the case of a government auction, the car goes back on the lot for the next auction. In the case of a private auction at a car show, the car goes back with its owner.
