Auctions are set up so that people can bid a dollar amount for a given item and the person who bids the highest amount wins that item. There are several types of auctions including farm, farm, livestock, and even auto auctions. Many people have the misconception that only car dealers can attend car auctions. This is very untrue, as there are thousands of auto auctions across the United States that are open to the public. Read the FAQs below to learn more about public car auctions and how they work.
Where do auto auction vehicles come from?
Many auto auctions are known as government auctions, and vehicles come from a variety of sources. Some of the cars have been driven by federal, state, and local government employees. When these employees get a new vehicle to drive, the used cars are auctioned off to the highest bidder. Law enforcement agencies often have to take possession of vehicles for searches and other reasons. If these cars are not returned to the owner, they are eventually sold at a government auction. Another source of many of the auction cars, trucks and SUVs is repossession. People who stop making payments on their vehicle will be recovered by the lender that owns the vehicle. Many of these vehicles have hardly been driven and have low mileage.
Are Auto Auction Vehicles Reliable?
Cars and trucks that are sold to the highest bidder at auction are generally very reliable. Vehicles driven by government employees rarely have more than 40,000 actual miles. Since many of the repository cars are not very old, they are also a very reliable ride.
How does the auto auction process work?
When you first arrive at the auction, you will be able to see all the vehicles in the lot. You won’t be able to take a test drive, but you can look under the hood and start the vehicle. You should also take this time to inspect the interior of the car and check its features. Make a note of each car you are interested in buying so you can bid on it when the auctioneer puts it up for auction. If the auctioneer starts the vehicle at a price you can afford, you can bid on the vehicle. If no one bids against you, you will pay the initial price of the car. If others are also bidding on the vehicle, the price will increase in increments and you can keep bidding until the price is too high for your budget or until others stop bidding. When everyone leaves the bidding except you, your last bid will win the car.