Used Car Auctions.
Getting the Best Buy.

Used car auctions are great bargain sources for finding cheap cars. By cheap I mean for less than you would expect to pay at a dealer or a private party for a comparable automobile. There are several types of private and public used car auctions. Lets take a look at a few of them here.

Types of Used Car Auctions

Although dealers bring vehicles here for a quick sale they may have a reserve price on them to protect their financial interest. You won’t find used cars for pennies on the dollar here but you will find them for less than retail, which may make them a bargain. The condition of the vehicle will vary depending mostly on the source from which it came.

The vehicles at these auctions come from several sources. Some of them come from dealers that want to get rid of their old inventory, vehicles that are older in years, and vehicles that have been sitting on the lot for a while. They may also be trade-ins that do not fit the dealers image(like a beat up Ford Escort on a Mercedes Benz dealership lot).

Others may come from financial institutions that use auctions to sell vehicles that are off lease programs or have been repossessed. Rental companies also use these auctions to sell their used cars. Companies may use these auctions to sell their fleet vehicles which may include cars, trucks, and vans.

Online Auto Auctions - eBay has thousands of used cars, trucks, vans, motor homes, and any other type of vehicle you may be looking for. There are of course many other online used car auctions. There are also websites that serve as links to the actual auction websites. Use caution when buying here as the possibility of fraud exists.

Police, Government Car Auctions - No, you won’t find a 2008 Mercedes for only $500 here, but you may very well find a quality used car well below retail price which makes it a bargain. These vehicles may be surplus, seized because of illegal activities or unpaid taxes, abandoned property, or unclaimed stolen property.

There are many advertisements and websites that offer lists and memberships for information on these government car auctions. It is not necessary to buy these as this information is available to the public simply by contacting the government agency itself either by phone, mail, or by going online to the government agencies website.

However, if you like the convenience of accessing all of these agencies across the country from one website, there are some good ones out there.

Public Car Auctions - Public car auctions are, of course, open to the public and no dealers license is required. You can find them advertised in shoppers, classified ads in local papers, bulletin boards, fliers, and online classifieds and websites.

Sources for these used cars may include dealers who want to get rid of inventory that would have no appeal at a wholesale auction. Charities often have used car auctions for the vehicles that are donated to them.

Auction houses sometimes take vehicles on consignment and then auction them off. Classic and collector car auctions can bring vehicles and buyers from all parts of the country. I have also seen some very good deals at consignment auctions and at personal property auctions.

Insurance Salvage Auto Auctions - These auction companies provide services for insurance companies. They process and sell total loss and theft recovery vehicles. To register with these companies you may have to pay an annual fee. You may also have to meet state licensing requirements to bid.

Attending a Used Car Auction

Know ahead of time the conditions of the sale. Is there a buyers premium? Sales tax? Do they take check, cash, or credit cards? Are there any convenience fees? When is payment due? When can you take the vehicle? How long can you leave it there? Are there any guarantees or is it “as is”?

Go early so you can inspect the vehicles. Some auction houses let you start, and maybe even test drive, the vehicle yourself and others just start them when they are ready to sell them. I like to start with the motor. If it’s no good the rest is pointless unless you are looking for a parts car.

If you can, start the vehicle. Have your bargain buddy watch the tailpipe for puffs of blue smoke that would indicate oils seeping through the rings. Check under the hood. Listen to the engine for tapping, ticking(valves/lifters),and/or grinding sounds(bearings). If it’s knocking, run, don’t walk, away.

Check the oil, transmission, and power steering fluid dip sticks for the condition of the fluids. Are the full? Are they clean? Do the smell burnt? Check the coolant in the radiator and the reservoir as well. Look for any fluids where they do not belong. Like oil in the coolant, coolant in the oil, or puddles of anything on the ground.

Check for seeping around the head gaskets or master cylinder, large amounts of oil on the motor, transmission, or differential. Is there any leaking from the brake lines, brake cylinders, fuel lines, fuel tank, or power steering pump?

Step on the brake. Is it hard or does it sink to the floor?This could mean air in line, low on fluid, leaking master cylinder, or lines. If it’s an automatic transmission and your foot is on the brake pedal and it does not go to the floor, shift through the gears.

Listen for any grinding or clunking. Noises here could mean a bad motor or transmission mount, u joints, differential gear, or serious transmission problems.

Does everything work? Check all of the gauges , windows, wipers, lights, turn signals, emergency flashers, high and low beams, brake lights, horn, radio, heater, blower motor, ac, power seats, and the power steering. If it has a power/manual sun/moon roof does it open and close? Does it leak? Is the windshield or any other windows broken or cracked?

Check the condition of the tires. Are there any cracks or bulges? How much tread is left? Are the tires worn unevenly indicating the need for an alignment or some sort of suspension repair? As long as you're down there can you see or feel the brake rotors? Check for wear and grooves if you can.

Has this car been in a wreak or had rust repair? Do the doors, hood, and trunk line up straight? Are there sanding marks or uneven body filler repairs? Check for body filler by using a magnate.

Are all of the panels the same color? Are they the correct color? Any evidence of masking or over spray? Check for welds, cracks or bends on the frame and radiator supports.

Has it suffered from flood damage? Many flood damaged vehicles are dumped at used car auctions. Look for leaves, mud and/or other debris on top of the gas tank, transmission, under the dashboard or any where else that it shouldn’t be. Look for waterlines under the hood. Does the interior smell musty or moldy? If it has new carpet look under it if you can.

Has the odometer been tampered with? All of the numbers on a mechanical odometer should line up straight and even. If they are crooked and uneven the odometer may have been rolled back. Check that the wear and tear on the seat, steering wheel, foot pedals and door handles matches the mileage on the odometer.

If you plan on keeping the car for yourself, does it fit you? Are the seats comfortable? Check out things like the position of the steering wheel, visibility of the gauges, blind spots, and leg room (not only for yourself but your passengers as well). How about the seat belts, are they adjustable or is it going to strangle you?

Go to the office and check on the title. Is it there? Is it clear? Liens? Is it a salvage title? Many salvage repair vehicles are sold at used car auctions.

Bring your resources to find the value of the vehicle with you. Price guides like classified ads, auto traders, blue books and the like. It doesn’t hurt to have another bargain buddy back home that you can call to do an online search.

Know the value of the cars you are interested in and know the most you want to pay. Stick to it or you may end up paying more than you wanted to, or worse yet, more than it’s worth.

Let your bargain buddy know these amounts so he/she can try to stop you if you go overboard. It is also good that they know as some used car auctions run more than one ring and if you're after more than one car they may go up on the block at the same time.

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