Do you know what an auto auction is or what they do. Auto auctions are where many used or new vehicles are sold, through auto-auction events. These auto-auctions are usually filled with used-cars and contribute a lot to their (used cars’) wholesale market. Most states in the US do not allow for public auto-auctions, except for few ones such as New Hampshire. Otherwise, one could find many closed auctions who only allow the participation of car dealers.
Closed Auto Auctions
These closed auctions are often referred to as car dealer auctions and serve only state-licensed dealers. There are different requirements for the car dealers in every state to get their license for dealing with cars. Usually, a state requires a certain number of cars that a dealer must sell and buy every year to get the license.
Closed auctions can turn out to be quite profitable when one is in the business of purchasing, upgrading and then selling those cars. However, if you want a car for yourself, then you will be better off to get your deal done at a public auction. There are two categories of car auctions for the public. First one is government car auctions which include city and county vehicles like the police cruisers, buses, and more. Impound cars are also sold at these government auctions; these cars have been seized during violations of traffic regulations or were part of criminal activity. These auctions will give you more competition from experts such as dealers who deal second-hand cars, taxi companies, and other such personnel who have extensive knowledge of the mechanics of the used cars.
Public Auto Auctions
The second type of open auctions is called public auto-auctions. Now, these vehicles are the ones that have been put for auction by the banks, or they might be repossessed from flood bunkers, the low-quality trade-ins. They might also, very rarely, have high-end, luxury cars and SUVs.
There are all sorts of the auction that vary in quality and credibility. So it is suggested that anyone try to get their cars from such events have done extensive research. People have to be prepared to face hefty competition as these auction events have become quite famous for their potential of increased profitability and have made car-purchasing an affordable thing. If you haven’t done your research, then you might be in for a rude-awakening because these very economical events can give you a really bad deal when you go beyond a certain level of bidding. Following pointers might help you in assessing a vehicle at public auto auctions.
Assessing The Car’s Condition
Start out by having a visual inspection of the vehicle’s exterior. You should have an idea or expectation of what you want your car’s exterior to look like. You should assess if there are damages and determine the extent of it and whether it is something to be compromised. Now proceed to look in and assess the interior. You might want to look in the hood and trunk to make sure of the car’s condition. You should assess whether the compartment open and close easily. Again, be sure that the car’s interior meets your expectation of it. The third step is to turn on the engine; listen for any noises that are coming from the car. You should keep investigating to be satisfied with the car’s condition. And do not make a decision to buy before it.
After leaving the engine idle, you should then observe the transmission system of the car to ascertain how it works in drive and reverse mode.
Some public auctions let you take a test drive. They assign a particular time for which you can drive and will give a space to drive in; you might also have to keep in a specified speed limit. Make sure you confirm these rules from the administration. You should then proceed onto ascertain your target acquisition price by using the data gathered and the details of the market.
Auto auctions could be a good place to get a car for yourself. So, you now don't have to ask yourself, what is an auto auction. However, the outcomes are highly subjective of your knowledge, research, and luck.