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