Auto auctions are a lot of fun and I go a couple times weekly. Its great to meet and talk to other dealers and get great deals on cars for resell. My heart beat races with excitement right before the car comes through the auction block. Then, I'm overjoyed if I win it !

When I first got started, I went to police impound auctions, and copart salvage auto auction, Now, you'll only find me at a dealer car auction. I look online and check out the presale list to see what’s going to be there. I get excited if I see a certain car that I know I can make some money with.

I get there taking a general look at all the vehicles but looking primarily for the vehicles I saw on the presale list. The presale lists have the vin numbers of the vehicles, so you can run vehicle history reports. These vehicles generally are the ones I came to buy. I get to the auction at least an hour before it starts to inspect the cars. There are so many cars there that I overlook a lot of them. The ironic thing is a lot of the time, I buy a car that I didn't inspect or come to buy. I come across these vehicles while they are idling, and waiting to be ran through the auction block. Its much higher risk to buy these cars because I didn't get an opportunity to do a thorough inspection. By this time I can't get in the car, and test it out. I have to do a quick five minute inspection.

I'll ask the driver how the car runs. Sometimes they're helpful, and sometimes they look at you like your speaking Chinese. I'll have them put it in reverse to make sure that works (you'd be surprised). I check for warning lights like a check engine, abs, airbag, etc. Then, I listen for engine noise. I look at the temperature gauge for signs of overheating. I take a good look at the exhaust checking for smoke. Check for leaks. Check out the body for dents, rust, scratches, etc.

During the presale inspection, I won't inspect certain vehicles because I think they're going to go to high. The auction experience is unpredictable. Even though I have a general idea of what certain cars will be sold for, you never really know. Prices are determined with whose at the auction, what time of the day, season, weather, etc. I'll see certain vehicles go much cheaper than I anticipated. Sometimes I'll take a chance and bid on them, other times I wont. Its a big risk to do this without first inspecting the vehicle. It may need some major repairs, and you'll need connections to get it fixed cheap so you can still make a profit. I wouldn't recommend this unless you have good amount of money. You can get buried quick in this business if you buy a couple of bad cars, and can't buy anymore cars to make back some of the lost money. The more money you have, the more risks you can take.

At dealer auctions you pay a buy fee on top of the purchase price of the vehicle. The seller is charged a sale fee. Its usually from $100 to $180 depending on which auction you go to, on top of the selling price of the car. This is how the auctions make their money. Most auctions charge the seller a no sale fee of $30 if the car doesn't sell.

At dealer auctions, You can purchase vehicles that are either guaranteed or as/is. Manhiem auto auction, and Adesa auto auctions offers guarantees on some vehicles. Parts of the vehicle that are guaranteed are most commonly frame, engine, and transmission. You can also arbitrate a vehicle if the SRS, ABS, or check engine light is on. Arbitration is when you bring the vehicle back to the auction for a problem that was guaranteed. The auction acts as a third party mediator between the buyer and seller. If there was indeed a problem found that was guaranteed, you can get your money back. Most guarantees last for a single day. One of my favorite auctions writes anything majorly wrong with the car on the windshield. If I discover a major engine problem that wasn't disclosed, I can bring it back that day, and arbitrate it. When I purchase a vehicle, I pay for it and take it for a nice test drive. If I notice something funny, or if a light pops up on the dash, I bring it back and arbitrate it. As/is vehicles are exactly that as/is. No matter what happens to the car after you buy it your stuck with it. These are vehicles you have to check thoroughly prior to bidding and be careful with.