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What You Need to Know About Vehicle Auctions 

Car auction

There’s more than one way to purchase a vehicle. While commonly used by dealerships themselves and by the government, auctions are a somewhat less common route to ownership. If you’re curious about how an auction works, we’re here to help you understand a bit more about this exciting way of buying a car.  

Types of Vehicle Auctions 

When seeking out an auction, you might come across a few different types: 

Public – This is where you’ll want to go if you want to try your hand at purchasing a vehicle in person through an auction. Public auctions often have a variety of vehicles to choose from including new or almost new, old clunkers that need some attention and even classics that have already been restored.  

Online – Another possibility for purchase is through an online auction. You won’t be able to see the vehicle in person, but there will be a complete description and photos. Then, you select the car you want to bid on and participate through your computer, phone or tablet. 

Government – Sometimes you can find interesting options through government agency auctions. There will be more than autos here, so if you’re seeking other transportation options like boats, motorcycles, recreational vehicles (snowmobiles, go carts, etc.), or even small passenger planes, this could be a good fit.  

Private – These auctions will be closed to the public. Most private auctions are for licensed vehicle dealers (such as dealerships). While you won’t be able to participate in this type of auction, you might still be able to get a vehicle from this sale by seeking which dealership bought it and reaching out to them for subsequent purchase.  

Tips for Bidding at Vehicle Auctions 

If you haven’t participated in a vehicle auction before, but would like to try, here are some tips and tricks to make the most of your first event.  

Do your research

There will often be a list of vehicles that are coming up for auction provided in advance. Look through the list and determine which vehicles interest you. Then, do some research on their value, how much any needed repairs might cost as well as purchase a report for the VIN (vehicle identification number) so that you know if the vehicle has been in an accident, totaled and other important details.  

Set a budget

It can be easy to get caught up in the moment, particularly if you get into a bidding war with another party for the same car. Set a budget that makes sense for your financial situation and the vehicle itself. Then, stick to it. If the bidding goes above what you have determined you can spend, you need to bow out.  

Confirm fees

Many auctions have a “buyer’s premium” which can be from 10%-30% of the cost of the item. The fee goes to the auction house and is not passed on to the seller. This needs to be factored into your budget when bidding. You might also be charged tax depending on the situation and the state where the auction is being held. Also, if you’re bidding online, check what fees will be applied to ship the vehicle to you if it isn’t local enough for you to go pick it up.   

Let the Bidding Begin

Purchasing a vehicle through auction can be a good way to get a deal. If you’ve done your research and stick to your budget, your new car could be one gavel pound away!  

Want to know more about vehicles purchased at auction?

Contact any of our dealerships to learn more about any vehicles they are placing up for auction or those which they have purchased at auction.    

 

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While great effort is made to ensure the accuracy of the information on this site, errors can occur. Please verify all pricing information with a customer service representative. This is easily done by calling us or visiting us at the dealership.

Customer may not qualify for ALL Rebates shown. Some rebates are stackable and others can and cannot be combined. See Dealer For Complete Details.