Auto Auctions | How-to Guides for running your business from Work.com

As in any auction, an auto auction delivers a chance at a killer deal knotted to a risk of paying big for a pile of junk. With auto auctions, the result you get depends upon your skill at appraising an item and bidding, and also upon the integrity of the auto auction. There are virtually no warranties or lemon laws to bail you out when you make a bad buy at a car auction. Caveat big time emptor.

That said, a savvy buyer willing to take a risk at auto auctions can indeed buy a used car or truck for a fraction of its book value. The steps are much like those at any other auction:

Gain entry: Some auto auctions --such as "wholesale" or "salvage" auctions -- admit only licensed dealers, but others are "public auto auctions" "police auctions" or "government auto auctions" open to anyone. You'll still have to register (online or onsite) to get in.
Research & Inspect: You may find some information about the cars online before the auto auction day. On the auto auction day, you will have an opportunity to check a car over before bidding. How much opportunity varies -- some car auctions don't make a car available for inspection until shortly before bidding, and often you won't get a chance to drive. If you have access to a computer between the time you learn the car's Vehicle Identification Number (VIN) and bidding, you can run an AutoCheck or Carfax history report.
Bid: Once the car auction auctioneer opens bidding on a car, just raise you hand whenever he or she calls out an amount you are willing to bid. Assistants are usually on-hand to make notes of bids.
Pay: When the auto auction closes, if the auctioneer declares the car "sold!" to you, you'll need cash, a casher's check or a credit card to cover not only the amount you bid plus sales tax, but often also another 5-10 percent of the bid amount in a "buyer's premium." Acceptable payment methods and any fees or premiums should all have been spelled out for you at registration; keep them in mind when bidding.

Action Steps
The best contacts and resources to help you get it done

Visit multi-source public auto auctions

There are third-party car auction companies that gather together used cars from a wide range of commercial sources: retired fleet, lease, and rental cars; cars repossessed by banks; and cars taken in trade by dealers ("consignment" cars) who expect to get a better price at auction than on the lot. They auction these at huge circus-style events (with hot dog vendors and balloons!). You'll find the greatest range of choices in model, age and condition at such auctions, but may learn less about a car's source and history than you would at more focused auto auction. The auctioneers have a lot of cars to sell, so things move fast.

I recommend: If you live in the area, check out the New York Auto auction; before going, you can even apply online for financing. Verastar hold auctions all around the southeast, while Brasher's holds events in California and all around the Northwest. The National Independent Automobile Dealers Association has a directory of auto auctions by state.

Tap into government auto auctions and police auctions

Just as with rental agencies, government agencies auction off cars after they have exceeded a certain mileage limit. At police auctions, police departments auction off their older cruisers and vans, as well as vehicles they have seized from criminals.

I recommend: The U.S. Government Services Administration sells its retired fleet vehicles (40,000 per year) at government auto auctions held around the country. CheapCarFinder.com offers one-stop shopping for repossessed and seized vehicles, by ZIP code, as do Gov-Auctions.org and AutoBeyond.com.

Surf to online car auctions

The first name you may think of when thinking online auction is eBay, and indeed eBay Motors auctions vehicles for dealers and private parties. But there are many more online public auto auctions specializing in used cars and/or trucks, as well as online dealers who sell direct online and ship cars nationally. The obvious extra gamble to online car auctions is that you can't examine the actual car (except in photos) before bidding, unless the car resides nearby and the seller is willing to show it. Some sellers will offer an inspection period after you win the vehicle; if there are any major defects the seller did not disclose up front, you can cancel the deal. Bear in mind that if you buy a car from far away, you'll have the additional expense of having it delivered or traveling to pick it up.

I recommend: In addition to eBay Motors, you'll find Monster Motors. Proxibid gives you live, online access to bid on live auto auctions as they happen.

Tips & Tactics
Helpful advice for making the most of this Guide

Cars sold at auctions may not have clear titles, leaving the buyer to straighten out title issues after the sale. The car auction is required to notify you of title troubles in advance; some use a system of colored lights to describe title status: green means clear title, yellow means there may be some small problems, red means no title available.
Have a recent used-car price guide, such as the Kelley Blue Book, handy so you can look up the book value of a car while at an auto auction, where you should always expect to pay well under the book value.
When buying from an online auto auction, you may be able to limit your search to cars for sale within your geographical area, so you can check them out before bidding.

The official source of Auto Auctions is the Auto Auctions page at Business.com

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Guide to Auto Auctions

Public auto auctions offer great deals for those not faint at heart

Visit multi-source public auto auctions

Tap into government auto auctions and police auctions

Surf to online car auctions