| A car auction is a like any other where a | | | | Another problem associated with online |
| commodity is sold to the highest bidder. Most | | | | auctions is that the seller may ask friends |
| potential customers attend an auction | | | | to make false bids just to hike the price of |
| believing that the price of a used car would | | | | the vehicle. In addition, you may have to |
| be substantially lower than the market value. | | | | travel long distances to pick up the |
| However, this is often not the case. In | | | | purchased vehicle. |
| addition, car auctions are infamous for | | | | |
| marketing flooded and stolen vehicles, which | | | | In the other types of auctions, you can |
| are bought by unsuspecting customers. | | | | inspect cars before bidding. Therefore, |
| | | | arrive at the auction site well in advance. |
| In general, there are six types of car | | | | Check whether all the VIN# stickers in a car |
| auctions. They are as follows: - Wholesale | | | | match. Otherwise, it was either stolen or |
| car auctions: These are held by car dealers | | | | repaired with the parts of another car. |
| for other car dealers. - Public car auctions: | | | | Ensure that the car comes with the title. If |
| These are open to all. - Company car | | | | you are in a hurry to buy and no title is |
| auctions: These are open to employees of the | | | | available, at least ensure that the contract |
| company. - Police & Government car | | | | states exactly when the title will be |
| auctions: These are usually open to all | | | | provided to you. Otherwise you will have to |
| customers. - Bank, Insurance, and Salvage car | | | | run around for it. Before you bid, remember |
| auctions: These are open only to car dealers. | | | | that you will have to pay a buyer's premium |
| - Online auctions: The most recent addition | | | | in addition to the price of the car. This |
| to car auctions, they are open to all. | | | | could be 5 to 10% or lesser; find that out |
| | | | earlier. Furthermore, check out the traffic |
| Although all auction types involve a risk | | | | light behind the auctioneer to find out |
| component, online auction is possibly the | | | | whether the status of the car title is red, |
| most risky. This is because, you bid only by | | | | yellow, or green. Everything about the title |
| seeing the car's features and photo on a | | | | is fine if the light is green. Ensure that |
| website. If you become the highest bidder, | | | | title status is mentioned in the contract. A |
| you are bound by contract to pay even if you | | | | Vehicle History Report is important in these |
| have not seen the car in person. Sellers | | | | types of auctions too. |
| often give incorrect or false information | | | | |
| about their car. Therefore, run a used car | | | | The main intention to purchase from an |
| title check on the VIN# to verify the | | | | auction is to obtain a used car at a rate |
| seller's claims. The seller may not list the | | | | much lower than the market value. Therefore, |
| VIN# and may provide wrong information about | | | | decide on the model of the car, check your |
| the model, year, tax payments, and insurance | | | | bank balance, and decide on the price you can |
| cover of the car. A Vehicle History Report | | | | go up to before bidding. Don't get carried |
| will enable you to verify these factors. | | | | away by all the bidding activity around you. |