Guide to used car auto auctions

When we are in the market to purchase a used vehicles, most people think used car dealership. But what happens when that used car dealer wants to put a price tag on a vehicle that no one wants to pay? He doesn't sell it. That is where the auction comes into play.

Used car auctions are more often than not, for used car dealers. It's where used car dealers bring their over-aged or unwanted vehicles to sell, and where they purchase more inventory for their lot to sell. How else do you think they make all that money off that one vehicle? Because they purchased it at a nominal price and sell it for retail.

Approximately 90 percent of all car auctions out there are for dealers only. So unless you are a dealer, or know someone who is, you can't get in. You can't even look to see what is in there for sale.

There are some auctions out there that are open to the public. The biggest difference between these types of auctions is the quality of vehicle that is being auctioned off.

Typically at an auction that is open to dealers only, the types of vehicles range greatly in price, age and quality. You will have some vehicles that are newer and some that are a little older, some that will cost thousands and some that will only cost hundreds. Quality will range from vehicles that will need no work to some that will need minor work or work that will not take much to get that car up to 100 percent.

Auctions that are open to the public on the other hand have an "anything goes" policy. And it means just that. Public auctions will carry vehicles that may only get you around for a week or vehicles that will need thousands just to get it in running condition.

Keep in mind that there are auctions out there that will only deal with vehicles that have been heavily damaged in accidents. These auctions are called impact auctions. These should only be used if the buyer is mechanically inclined and has a passion for body repair.

No matter what type of auction that you decide to attend to purchase that used vehicle, there are certain steps that should always be followed before and during the auction process.

1. Assess your financial situation

Don't walk into the auction without having any idea of what it is that you can afford to spend. Keep in mind that the vehicle will need to have at least some repairs done to it to conform to your state safety guidelines, whether it be brakes or a windshield.

2. Arrive early

Make sure that you are there well before the bidding process begins. Once that vehicle is on the auction block there is no opportunity to look the vehicle over. Getting there before will give you the opportunity to drive the vehicle, check its fluids and even smell the fumes that come out of the tailpipe if you wish.

Make sure that if you are not mechanically inclined that you bring someone with you that is. This will give you a better understanding of what it is that you are looking at and what you will be getting yourself into. No one will tell you what the vehicle may need, and they don't have to.

If the auction has a website where they post vehicles that will be for sale, check it out. You might save yourself some time by knowing whether or not something you are willing to buy is even for sale.

3. Make sure you bring enough cash with you

Whether or not you are fully planning on buying something make sure you have cash. Unless you have been purchasing from that specific auction for awhile, they most likely will not accept a check. No matter where you are, cash is always acceptable.

4. Be prepared for noise, speed and a lot of people

Everything about an auction is fast paced, everything from the bidding, to getting from one lane to other to look at another vehicle, to getting through the crowd. People are everywhere. Be prepared.

5. An auction is not a time for questions

The dealers that are there are participating in a part of business that they don't necessarily enjoy. The last thing that you want to do is start asking them questions, especially if the vehicle is not one of theirs for sale. Do your research and get any of the documentation you need from the front desk.

6. Know what those silly numbers mean on the vehicle window

When you look at a vehicle that is being prepared for auction there will be a number that looks much like 97/97854 written in some kind of marker. This means that the vehicle is a 1997 model with 97,854 miles. This will also save you time. If you know you want a 2000 or newer with less than 50,000 miles, you know this isn't a vehicle you want to purchase.

All in all, you should be prepared completely when participating in any auction. Most of the time, you will purchase a vehicle for a 2-3 thousand and the vehicle is really worth about 5-6 thousand. So it is in your best interest to try not to be the one that gets cheated, bidding on and winning a vehicle for 2 thousand when the vehicle is really only worth about 200 and still needs over a thousand in repairs. Remember, auctions are the same as a contract. If you bid on it, be prepared to pay for it. You can't back out.

Make an informed purchase, an auction is a buyer beware atmosphere; you bought, it too bad.