Car Auctions Open to the Public – the Basics

Many private individuals choose to buy cars at car auctions in search of a great deal – and great deals do exist. You’ll need to understand the basics of car auctions, though, to make sure you know what you’re getting into and how to take advantage if a great opportunity comes along. There are two basic types of auctions you can attend in person: Auctions that are open only to licensed car dealers, and auctions that anyone can attend, including car dealers. (Many used car dealers will attend public and “private” auctions in search of bargains.)

If you’re going to buy a car at an auction, it’s best if you know a lot about cars and have a working knowledge of how to make automotive repairs (or know someone who can help you out for a low cost.) Why? At most auctions you’ll be allowed to inspect the outside of the car, look inside, and open the hood, but you won’t be allowed to start the car or take it for a test drive. The car might look great but could have hidden problems, so it helps if you’re comfortable with making automotive repairs in case the car you purchase at a car auction needs work.
You’ll also need to have cash (or your checkbook) in hand – car auctions require that you make full payment at the time of purchase. All sales are final, and the cars are sold on as “as is” basis, so there’s no guarantee or warranty offered. In short, you can find a great deal, but there’s also an amount of risk involved.
Where can you find public auctions? A number of government agencies hold public auctions, including:

The Internal Revenue Service (IRS)
The Customs Service
The Postal Service
The General Services Administration
Local and State Police

If you haven’t already guessed, most of the cars sold at public auctions by government agencies have been seized or taken from their previous owners. If you’d like to find out about auctions in your area, check your local newspaper or call your local government offices. Car auctions are held more frequently (and with a larger selection of cars) in larger cities, so it may be worth your time to take a trip
Here are some things you’ll want to find out before you attend an auction:
When is the pre-inspection period (if any)?
What are the sale terms – do you have to put down a deposit before you can bid, do they require cash, cashier’s checks, or credit cards?
How will you get the car home if you win the auction? You won’t be able to register the car, so you’ll need to have it towed. Most auctions won’t allow you to leave the car on the lot after it’s purchased.

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