Automobile Auction Rules
Automobile auctions are venues in which sellers can offload an old vehicle and in which canny buyers can snag a great deal on used cars. However, there are a number of rules governing both the buying and selling of cars at an auction. While specific regulations vary between auctions, there are a number of rules common to most events.
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Have a Bid Card
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Only bidders who have a received a bid card--usually a large paddle that, when held up, is visible to the auctioneer--are allowed to bid at auto auctions. This allows the company running the auction to restrict buying to approved buyers, who will be required to present a photo identification proving they are at least 18 and possibly to leave a cash deposit.
Pay For What You Buy
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If you bid on a car and you win it, you have to buy it. How much of the total price a buyer must pay and the form of payment vary between auction houses. In some, such as the Lake Placid Festival of Cars Auction, a buyer may be required to pay the full amount in cash shortly after the purchase; another, such as Good Buy Auto Auction, will accept a down payment paid by personal check.
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Cars Sold 'As Is'
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Auction houses, such as American Auto Auction, seldom offer warranties or any other form of guarantee on the cars they sell, instead preferring to sell the vehicles "as is." This means that if a purchased car doesn't make it out of the parking lot, it can't be refunded or exchanged. However, many auctions allow buyers to inspect the cars before purchasing them.
Register as a Dealer
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A dealer who wishes to buy a car must register himself as a dealer before bidding. Whatever cars the dealer buys are then listed in a database accessible to companies, such as CarFax.com, that offer vehicle history reports. Whoever ends up buying the car from the dealer is then better able to trace the car's past owners.
Auctioneer Rules
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In agreeing to participate in the auction, a buyer agrees to abide by the auctioneer's rules. In an auction such as that run by Metro Auto Auction, the auctioneer has the finally say on all disputes that arise in the course of the auction. This can include disagreements over misheard or near-simultaneous bids. If a buyer bids and the auctioneer does not hear them, the buyer has no chance to appeal.
Taxes and Fees
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Most cars sold at auction are sold without a license plate. The new buyer is required to pay all taxes, registration charges and transfer fees that come with the car. The new buyer must in most cases purchase insurance for the car.
No Cameras
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Most auctions forbid the use or cameras or recording devices on the premises.
House Voids on Bids
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Most auction houses reserve the right to decide, for any reason, not to accept your bid.
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References
Resources
- Photo Credit a car in a car show image by Gary from Fotolia.com
