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