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Step 1
There are basically 2 types of car auctions. Those open to the public, and those open only to licensed auto dealers. We will only explore the auctions open to the public, since you are most likely not a licensed auto dealer.
Public Auctions include:
Towing or Salvage auctions. These are only recommended to the savvy car buyer and those with mechanical ability. These auctions usually require the buyer to obtain their own titles from the State Dept Of Motor Vehicles. This is not in many cases an easy task, and is almost always timely. All vehicles are sold AS-IS, and you normally are not allowed to drive or test them prior to purchase.
Collectible Car Auctions. All vehicles are generally sold AS-IS, however, you normally have the option of having a preview of the vehicle. You may bring a mechanic if you choose. There is normally a lot of receipts or vehicle history from the owner available.
Governmental Auctions. A true government auction is a great way to buy an everyday type of vehicle. Normally trucks, vans, cars, trailers, and even tractor type vehicles are offered. These auctions are usually ABSOLUTE which means the items sell to the highest bidder....REGARDLESS OF PRICE! Caution should be exercised to make sure the auction is a true government sponsored auction, and not just someone "reselling" something they bought at a government auction.
Other Public Auctions include the liquidation of an estate in the event of the death of an auto owner, closing business auctions, bank repossession auctions, and consignment auctions. -
Step 2
To Bid you normally will be required to provide positive ID such as a drivers license. You may also be required to prove ability to pay for purchases in the form of a bidders card deposit. These deposits should be returned to the bidder if they do not make a purchase. You will be provided a bidders number. You are responsible for all bids offered with that number.....do not let someone else use it, or you will be responsible. Make sure the auctioneer or ring person (bid assistants) see you making a bid. If they miss your bid, you do not get a second chance. Also, remember NO bids can be rescinded. Make sure you know the amount you are bidding. Remember, there are no friends at an auction. You may bid against anyone else, just as they may bid against you.
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Step 3
If you are the successful highest acceptable bidder, you will be under contractual obligation to complete the purchase. You will pay all taxes, transfer fees, usually all state required inspections and smog tests, and any additional bidders fee. This fee is to pay the auction company for the conduction of the auction and the costs paid by the auction company. This is usually a percentage of the bid amount, although there may be a set fee per purchase.
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Step 4
As with all purchases.....it is always your responsibility to make sure of what you are doing. Make sure to understand fully all terms and conditions of the auction. The auctioneer and his/her staff will help you throughout the auction to understand the process. Ask questions if you are not sure. Do your homework on the condition of the car before the auction date if possible. Set your maximum purchase price and bid accordingly. Have a great time....and good luck with your bidding.
Comments
chrisardolino said
on 10/10/2009 I bought my last car at an goverment auction in Dover, De. A 2001 Honda Civic LX for $3,200.00. Its definitely something worth looking into, alot cheaper than a dealership. Sometimes there hard to find but If you use Gov-Auctions.org you'll be on top of the ones in your area.