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Using Auto Auctions

How to make sure you don't buy a lemon at automotive auctions

By Michelle Cramer
A vehicle auction is a means of purchasing a used vehicle under the stated value of the car. More often than not, vehicles at a live car auction are the result of repossessions, confiscated due to criminal activity or salvaged. Online car auctions are usually someone simply selling their used car, much like in a newspaper ad, except the price isn’t set.

While you can obtain a great deal on vehicles at an auto auction, it’s important to make sure that you’re getting what you pay for and aren’t stuck with a lemon. Using auto auctions means paying attention to the following:

1. Know the value of the vehicle before bidding at auto auctions.

2. Check every mechanical function of the vehicle that you can before the car auction starts.

3. Run a vehicle history report for a car offered in a public or online auto auction.

 

Arrive at public auto auctions early

It's a good idea to arrive an hour or two early at a live auto auction. This gives you the opportunity to take your time viewing the available vehicles, without the hassle of crowds, so that you can make completely educated decisions about your purchase. Take a Kelly Bluebook, Edmunds book or NADA guide with you to determine the average resale value of the vehicle, so you can make sure you don't overbid.
Try: Refer to CarBuyingTips.com for a guide on used car auto auctions for a variety of recommendations to make sure you get the best, and most reliable, deal on your purchase. The New York Better Business Bureau warns about advertisements and claims about auto auctions that consumers should be aware of beforehand.

Examine vehicles thoroughly before considering an auto auction bid

There are a number of things you should look for on cars you have interest in purchasing to make sure they're worth it. While you can't test drive the car, you can run some basic diagnostic checks to make sure it works sufficiently. For online auto auctions, you're bidding on a car that you can't see, so you have to trust the seller's information. Ask the seller every question you can think of about the car before bidding. You should also check into the auction site's buyer protection policy.
Try: Auto Broker Magic provides a list of things to test in order to separate the good vehicles from the bad. ConsumerReports.org offers helpful advice to make sure the vehicle isn’t a lemon.

Run the VIN through a history check before purchasing from automotive auctions

Before the auction, whether public or online, sign up for a vehicle history report account with a reputable provider, preferably with the ability to run multiple reports, since you will be looking at a lot of vehicles. Take a pocket PC with you to live auctions (or keep a friend on call that has Internet access). When you find a vehicle that you like, run the VIN number through the vehicle history report service and make sure it hasn't had extensive damage or other value degrading incidents. The auction company or seller might provide a history report, but you can't be certain it's accurate, so it's better to run your own.
Try: Visit DMV.org to find out what information a vehicle history report provides to you. AutoCheck offers unlimited reports for 90 days for around $25.

 

  • Remember that you must pay a buyer's premium on top of your winning bid at live automobile auctions. Basically, this is a fee to the auctioneer, usually between 5% and 10% of the selling price. So, if your winning bid is $5,000 for a car, you will be paying an additional $250 to $500.

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