Auctions are set up so that individuals can bid a dollar amount on a certain item and the person who bids the highest amount wins that item. There are various types of auctions including estate, farm, livestock and even auto auctions. Many people have the misconception that only car dealers can attend auto auctions. This is very untrue as there are thousands of auto auctions all across the United States that are open to the public. Read the frequently asked questions below to learn more about public auto auctions and how they work.
Where Do Auto Auction Vehicles Come From?
Many auto auctions are known as government auctions and the vehicles come from a variety of sources. Some of the cars have been driven by local, state and federal 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 aren’t returned to the owner, they are eventually sold at a government auction. Another source of many of the auction cars, trucks and SUV’s is repossession. People who stop making payments on their vehicle will have it repossessed by the lending institution that owns the vehicle. Many of these vehicles have been barely driven and they have low mileage.
Are Auto Auction Vehicles Reliable?
Cars and trucks that are sold to the highest bidder at an auction are generally very reliable. Government employee driven vehicles seldom have over 40,000 actual miles. Since many of the repo cars are not very old, they’re also a very trustworthy ride.
How Does The Auto Auction Process Work?
When you first arrive at the auction, you can look at all the vehicles that are on 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 out its features. Make a note of every car that you’re interested in buying so that you can bid on it when it’s being auctioned off by the auctioneer. If the auctioneer starts the vehicle out at a price you can afford, you can make a bid on the vehicle. If no one is bidding against you, you’ll pay the starting price for the car. If others are also bidding on the vehicle, the price will raise in increments and you can continue bidding until the price gets too high for your budget or until the other people stop bidding. When everyone drops out of the bidding except you, your last bid will win the car.