My name is Greg Smokes and I have spent decades bidding in car auctions and helping public bidders with their first visit. If you are curious about buying an auction car at a public car auction, I hope this guide will ease your concerns and get you started.
There are lots of great dealerships and online marketplaces(such as Cars and Bids or eBay Motors), but there are few places that offer what a car auction that is open to the public can as far as selection and low prices go.
Car auctions can be found all over the United States[Click to learn how to find local car auctions near you]. They usually operate weekly sales and offer an extensive selection of used cars, trucks, vans, SUVs, etc that are often in decent condition.
My favorite part about car auctions: They’re a TON of fun! You’ll see.
Used vehicle auctions are a great way to snag a deal on a preowned car if you know what you’re doing. There is a reason people tend to avoid them because they can feel quite overwhelming at first. However, in my experience, I find that most first timers enjoy the process greatly.
Do not worry, public auctions are very accommodating to first time bidders and will walk you through it the entire way. Auction cars are usually a great value for the patient buyer.
Types of Used Car Auctions
There are two main types of car auctions in the United States: dealer auctions and public auctions. Dealer auctions are only open to licensed dealers, while public auctions are open to anyone.
Public auctions are usually divided into government and police car auctions and also public wholesale car auctions. You will find city and county police cars, bikes, buses, and utility vehicles at the police car auctions.
Meanwhile, a public wholesale auto auction will have used cars from local car dealers, bank repossessed vehicles, and insurance/salvaged cars are usually sold separately at their own auctions.
Dealer auctions require a license because of the vehicles being sold at wholesale price. However, there are occasions where online platforms allow public access to these exclusive auctions.
How a Used Car Auction Works
Auctions often enable you to attend in person or an online used car auction, and each vehicle is typically assigned a number and displayed in a catalogue, giving a brief description.
Online auctions can make it easier to find what you’re looking for, as you can select your search parameters. You will also be able to set a maximum budget to bid so the bidding can go on without you.
If attending in person, you’ll want to find the list of vehicles that will be auctioned off and note the corresponding numbers. You’ll also want to inspect each car before bidding on it (this is very important and a step I often see auction beginners skip).
The cars are usually lined up in the order they will be sold in, so you can take your time walking around and inspecting them.
When the auction begins, the first car will be driven onto the stage and its number will be called out. The auctioneer will then start the bidding at a predetermined price. People will then be able to bid on the car and if they are the highest bidder, the car is theirs to take away once payment is taken and documentation exchanged.
What to do Before Attending a Car Auction Open to the Public
If you’re considering attending a car auction in the United States, there are a few things you should do beforehand.
First, look up the auction, find out the timings of everything, where you need to go and how to collect your bidding card and any additional action fees payable if a vehicle is purchased. Showing up to an auction unprepared can result in a stressful experience and possibly cause you to arrive late.
Next, find out what kind of cars will be auctioned. Browse the listings to see what vehicles may be of interest to you. Take note of these so you know what to look out for on the day.
You may also want to attend a preview day to get an idea of what will be available and have a good look at the vehicles that interest you. Be sure to do some background checks on the cars you are interested in as the cars are made to look their best, but they may have a history you don’t want to be buying into.
Finally, when considering how much you want to spend in the auction, I suggest that you also keep in mind auction fees and taxes that will be added to the bid price. Do not let these catch you off guard.
Be strict with yourself and know what you are prepared to pay for the vehicle based on its worth to you and remember that there are often auction fees to add on to the final price as well as any applicable sales tax.
The auction will disclose the amount of the fees and what taxes they collect when you complete your bidder registration.
My Advice for First Time Bidders at Public Wholesale Used Car Auction
I highly suggest that you plan on arriving early. Some auctions start as early as 10 a.m. and some even earlier. You’ll need to register for a bidder’s badge and asked put down a deposit, which is typically $100 to $500.
I remember this one time in Philly, I rolled up to this auction late, and man, was that a mess. The lot I was after, a cherry ’08 Tahoe, was already on the block. I had to elbow my way through the crowd just to get a glimpse.
By the time I got a bid in, the price was already higher than I wanted it to be. Missed out on that deal, and it taught me a lesson: Get there early! You need time to check out the cars, get a feel for the auction’s rhythm, and figure out where you want to be when your target cars come up.
When you win the bid on a car, your deposit will go toward the car’s purchase price; if you don’t win the bid, you’ll get your deposit back when you return your bidder’s badge.
Once you have done the bidder registration, you will most likely want to inspect the cars you are interested in before you decide to bid. The auction will usually allow time for this before the bidding starts. Once the bidding starts, it’s important to pay attention to the other bidders and try to gauge how much they’re willing to pay.
The auctioneer will announce each car as it comes up for sale, and will usually give some information about the car — such as its make, model, and year in addition to information on the title status. To start bidding, raise your bidder’s badge high in the air when the auctioneer points to you and states the opening bid price.
If no one responds to the opening bid, he’ll keep lowering the price until someone does respond by raising their badge again or giving him a nod of approval. If someone else outbids you and you want to keep going, simply raise your badge again or nod your head once more.
Remember that all bids are binding; if you’re the highest bidder when the auction ends, you’ve just purchased a car.
You will then need to pay and fill out the required paperwork. You will also need to arrange to get the vehicle home or arrange insurance to be able to drive the vehicle home yourself.
Remember that it is very important to understand the auction rules and fees or you could end up paying over the value for a car that does not suit your needs or costs you a lot of money to repair.
Bidding in a public wholesale car auction in person tends to be less risky for a first time auction buyer than an online auto auction. However, you can click here for a list of free online car auction sites.
SEE ALSO: List of Public Car Auctions at Car Dealer King’s Auto Auction Directory
Last updated on February 9th, 2025 at 02:45 am
