F.A.Q
How does this work?
Are auto auctions legal?
Auto auctions seem too good to be true. Are they?
What is an “open” auction?
What is the difference between a government-run, police impound and a repo auto auction?
Where can I find auto auctions?
What is the condition of the autos, and how can I check out the one I want?
What if I don’t find anything I want?
Will I have to pay any additional fees at the auction?
What if I have other questions not answered here?
How does this work?
Autos purchased under government contract, seized by police agencies and repossessed by banks are put up for auction by their respective agencies because it is cheaper to sell them at a loss than to store them indefinitely. Most autos on the auction block are only 2-3 years old and have 40,000 miles or less on the meter. Auction houses have regular auction dates as well as a list of vehicles for sale on each date. Most allow for a pre-sale inspection so that you can check out any autos that interest you. You can obtain a Carfax report for each vehicle and arrive early on the day of the auction to make any last minute checks on the auto you desire. If it is your first trip to the auction, it is a good idea to ask a lot of questions, watch how things operate and listen closely. Auctions happen quickly. You should have a price in mind that you are willing to pay and stick to it to avoid getting caught up in the excitement and paying too much. Depending on the individual auction house, you will likely be asked to pay at least a partial payment on the day of the auction and the remainder within 48 hours.
Are auto auctions legal?
Yes! Thousands of autos are repossessed by banks and seized by police each day. Even more are sent to auction by governmental agencies. All of these vehicles are legally available for auction. Many times, the agency selling the auto at auction will set a reserve price which is the lowest they are willing to accept for that particular piece of property. This way, they don’t lose money on the transaction. Most of these reserve prices, though, are well below retail prices.
Auto auctions seem too good to be true. Are they?
They are not too good to be true, and they are legal. The reason more people don’t utilize this method of purchasing an auto is because they don’t know about it. Auto retailers purchase many of the vehicles on their lots in this way. They get them at up to 90 percent off of retail prices and mark them up for sale, so it is to their advantage not to let the public know about the great deals available to them.
What is an “open” auction?
An open auction is open to the general public. Most auctions are in this format. There are, however, a few closed auctions that only auto dealers or those with certain licensing may attend.
What is the difference between a government-run, police impound and a repo auto auction?
The biggest difference between the types is the source of the vehicles. Government auctions receive autos from agencies such as Homeland Security, the DEA, Border Patrol, FBI and IRS to name just a few. State, county and local governments also regularly auction surplus property. Police impound auctions are just what the name indicates. The autos here have been seized by police agencies as the result of illegal activity. A repo auto auction is held by a bank or finance agency that has repossessed property that a buyer could not pay for. Also, in government auctions, buyers pay no fees or registration charges. Other auctions run by private auction houses may have a 5 percent fee tacked on to the top of your bid. This is the auction house’s income.
Where can I find auto auctions?
There are auto auction sites in every state. In most cases, anyone over age 18 with a valid picture ID can attend and participate. Auctions are held either monthly, quarterly or annually, depending on the auction house. Just about any type of vehicle can be found. The best thing is that most people don’t know they exist.
What is the condition of the autos, and how can I check out the one I want?
Most of the autos up for auction are only 2-3 years old and have traveled less than 40,000 miles. Many auctions offer the Carfax report for the autos, or you may obtain one yourself by visiting the pre-sale inspection and obtaining the VIN number of the auto you wish to bid on. In addition, there is typically a free 3 month warranty offered by private auction venues. Many auto auction houses also offer extended warranties that can be purchased. These are similar to the extended warranties auto dealers offer.
What if I don’t find anything I want?
Thousands of vehicles come into the used auto auction market every day. If there is nothing you wish to purchase at this time, check again later. You can always obtain multiple run lists for various dates from the auction venue of your choice.
Will I have to pay any additional fees at the auction?
Government-run auctions do not require additional fees or registration costs. That being said, most auction houses attach an additional 5 percent “buyer’s premium” to your purchase price. This is the auction house’s income. However, the standard tax, title and licensing fees apply.
What if I have other questions not answered here?
Please email us here.