1. What is a car auction?

A car auction is like any other auction you might attend online or at a physical location. The only difference is that only cars are sold there.

2. Can you really get $500 cars there like everybody is talking about?

Although you can get $500 cars at a car auction, that is a rare occasion. Most cars usually sell for $1,500 or more, which is still way less than what you would pay at a traditional car dealership.

3. If the car stops working after I buy it can I bring it back?

Unfortunately the answer is no. All cars are sold in as-is condition, so it is very important to bring a mechanic to check the car out if you can't do it yourself.

4. Will I get in trouble if I bid on a car and don't have enough money to pay for it?

By placing a bid at a car auction you are entering into a legally binding contract. So, depending on the auction, thye might let you slide or sue you for what you owe them, in addition to any legal fees.

1. A Kelly's Blue Book

2. ID or Driver's License

3. Money or a cashier's check

4. A friend so you can drive your new car home

5. A mechanic

How much you will pay at a car auction all depends on what type of car you're looking at. You can pay $1,500 for a basic car like a Honda or $15,000 for something more luxurious like a Mercedes or BMW. Either way, you still will end up saving tons of money compared to the amount you would pay at your local dealership.

Getting a great deal at a car auction is easy. Finding one near you is the hard part. You can either look through the newspaper or online for an auction taking place in your city, which may take awhile. Or you can join a car auction listing site. By joining you will gain access to thousands of auctions taking place in every state. You can also see what cars they will be having for sale, in addition to the time, date and location of the auction. This is the option most people choose after having no luck with the newspaper or internet.

Visit these car auction sites for locations in every state and bids starting at $100:

1. Gov-Auctions.org

2. CarAuctionInc.com

3. MyCarAuctionReview.com