Auto auctions are a method of selling new, and most often, used vehicles based on auction system. Auto auctions can be found in most nations, but are often unused by most people, since in nations such as the United States, auto auctions are protected source for used car dealers. In other countries, such as Japan, auto auctions are well known and used, sometimes indirectly, by most residents.

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A car dealer auction is a specialized form of auction. Millions of vehicles are sold at such dealer auto auctions every year. These auctions are restricted for the general public and only licensed dealers can participate. Prices of vehicles sold at dealer auctions tend to be lower than those advertised on any dealer’s lot. Sellers forgo a potentially higher sticker price to take their inventory to a dealer auction where it will be auctioned off for thousands less than retail for a number of reasons.

 

Maintaining aging inventory costs dealers both money and reputation. Most vehicles sold are off-lease returns, replaced rental fleets, company cars, repossessed vehicles, and trade-ins.[6]


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Among these types of vehicles there are a number of quality cars ready to market. Late models with remaining factory warranty are not uncommon. The law requires listing dealers to disclose bigger mechanical problems, which may void the manufacturer’s warranty and classify the vehicle as junk, salvage, lemon/consumer buy-back, etc. There are special auctions for these types of vehicles (salvage, rebuilt or junk vehicles), sold mostly by insurance companies. Other types of auctions specialize in the sale of police or government cars; some of those actually allow public access.

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Be Sure to look and see what the current auction prices are for cars you might be looking for. We post Used Car Auction Prices on a regular basis. If you are looking for prices on a particular model, drop us a line.

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