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Car Auctions

Car Auctions Why You Need Them
by: Walter Shuler

Using car auctions can be a fantastic tool for almost anyone. Whether you are looking for a new personal vehicle or want to purchase several and sell them for a profit, car auctions can be the best way to fill your needs. However, before your rush off to just any auction, you'll need to understand what type of auctions are available, as well as what each offers.

Online Auctions

Online car auctions allow buyers from all around the world to bid on cars. These take place through auction websites, such as EBay Motors, Yahoo! Auctions and other options. Winning these auctions means that you are bound by a legal contract to purchase the vehicle for the price you offered. That means you need to shop with care and avoid getting into a bidding war. Because of the nature of these auctions, prices are often higher than what you will find with other options.

Public Auto Auctions

These are held at a physical location, though phone bidding is often allowed. Many of these auctions have attained great popularity and are broadcast live on television for viewer' enjoyment. Public auto auctions are open to anyone, with no restrictions (unlike wholesale auctions). These auctions are also very competitive when compared to some other auction formats and prices can quickly escalate. However, these are great places to pick up a solid car at a great price if they are not highly sought after vehicles.

Wholesale Auto Auctions

Wholesale auctions are much different that public auctions. These are usually reserved for those with a dealer's license. This is where you will find rental cars for auction that have lived out their life on a rental lot. You'll also find dealer-to-dealer auctions in order to move overstock and many other types. However, if you don't have a dealer's license, don't try to show up for these.

Police and Government Car Auctions

When most people think of car auctions, they picture this type. These are auctions for seized vehicles, whether seized during a criminal activity or for some other reason. In addition, you can buy government vehicles that are no longer in use. These are great options for anyone looking for a good deal on a vehicle with an "iffy" past. There is no guarantee that seized vehicles will be in any certain condition, though you are permitted to look at the vehicle prior to bidding.

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