Local Car Auctions
Vehicle auctions, as the name indicates, is a way to sell automobiles, using the bidding system, usually done in a public place. The vast majority of the cars, that pass through a car auction are pre-owned cars. In most cases, this involves ordinary cars that consumers will use on a day to day basis. The other type of auction involves rare and exotic vehicles, usually collectors’ items. This type of auction is rarer and done only in specific locations. However, the following will be about ordinary cars and their auctions.
It Starts With the Automobiles
Vehicles auctioned in most auctions will have a varied past. As mentioned, they will be used cars and the reasons why they are put up for auction could be several. The two most common scenario is the automobiles a dealership gets when they do trade-ins and sell the customer a new car. These vehicles are then cleaned up an put back on their sales lots with the hope of reselling them. Some of them will get sold and some will not. In this scenario, there is only one option left for the dealership and that is to give the unsold car to an auction to be sold.
The next scenario, and generally a better one for customers, are the vehicles whose leases have expired. These vehicles are returned to the dealership from where they were leased from. Again, these cars are cleaned up and put on their used car lot for sale. The ones that do not get sold get sent to auction. The reason why these cars present a good value is that leased cars will generally have fewer miles on them, and the owners are more careful about taking care of them.
How Much Are They Worth?
The first thing that needs to be understood about local car auctions is that that the vehicles are sold “as is” in most cases. This means the seller is not giving a 100% guarantee regarding the condition of the car. After all, it is a used car and the responsibility rests with the buyer to figure out what they are getting into. Local auctions are known to put up any old jalopy to be auctioned.
There are two sources that most vehicles auctions will use when determining the value of the car. One is Kelly Blue Book and the other is the booklet put out by NADA or the North American Dealers Association. They calculate the worth of a vehicle by factoring in the age and the condition of the car. It is not 100% accurate but will give the buyer and seller a good idea of the worth of the car.
When You Are At the Auction
There are few thing to look out for at the auction. Above the auction master, there will be lights in place. Red light means the vehicle is an “as is” item, green light means the seller is guaranteeing quality and blue light shows that the vehicle does not have a title.