How to Car Auction

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Are you looking for a cheap project car, or a winter beater? If you are looking to buy a running car for the price of one new car payment, you owe it to yourself to check out an auto auction.

Towing companies impound vehicles every day, and for various reasons, their owners do not claim them. Depending on your local laws, the towing company can resell the impounded vehicles in as little as 30 days. Usually it takes longer, as there are notifications and legal red tape to wade through, but after receiving a “mechanic’s lien,” the vehicles are theirs to sell. If that seems unfair to the owner, just remember that they were parked illegally, the owners had notice and time to get it out of impound, and the company needs to recoup towing and storage costs.

For this article, we attended a local towing auction. Note that there are probably police impound auctions in your area as well, and while good deals can be found there too, you might also accidently sit on some evidence, if you know what we mean… Auctions are typically held on a Saturday, for maximum attendance. Once you have found a local company, check their website for dates and times. Most seem to want to sell the vehicles, and offer a list of vehicles that will be at auction. About two-thirds of the time, the auction page has pictures for the vehicles they sell. If you have any questions, give them a call during normal business hours in the days before the auction.

When you arrive, check in at the office. Spectating costs nothing and needs no sign-in, but if you plan to buy, you must show proof of ID, and receive a bidding number. Our local place was awesome and had free coffee and donuts for the bidders.

Then it’s time to walk the yard. Grab the inventory list, and take a look at each vehicle, or head directly to the one you are interested in. The vehicles are unlocked, so you can look into anything you want. At some auctions, the keys are in the vehicles so you can start them, but this seems to be in the minority. Usually the towing crew comes by with a battery charger to provide a jump just before the auctioneer gets there. Remember, these vehicles have been sitting at least a month.

Crowds will gather around the first car as the auction starts, but hang back if you aren’t interested in that one. The auctioneer usually has a microphone and speaker setup, or a megaphone. They typically understand there are some newbies in the audience, and that some of them aren’t adept at English, so while they speak quickly, it is just the current price, not rapid fire gibberish like in Hollywood comedies. You won’t accidentally bid the car up to a million dollars by scratching your nose.

Pricing starts at very reasonable prices. They realize they aren’t selling new cars. The auctioneer cracks a few jokes to get the audience involved, and quickly explains how to bid. If you are interested in a vehicle, stand near the vehicle, in sight of the auctioneer or their bid spotters. If the current asking price being called out is acceptable, raise your bidding card so they can see the number. You will typically get a point and/or nod, and the auctioneer moves on asking if anyone wants a higher price. Generally, the increments increase by $100, and when interest slows, $50 increases. When no one wants to bid the price higher, it is yours. The spotter or another crew member will write your bidder number on the vehicle’s windshield, before they head to the next one.

A running early 2000’s Kia Sephia went for a whopping $250. That’s a car you can drive for the total cost of one payment on a new Nissan Versa Note. Other cars stayed in the very cheap range, with the average probably around $900. A sixth-generation Nissan Sentra sold for $1,900, which is about one-third of what you would expect to find at a dealer, according to Kelly Blue Book.

Interestingly, someone had abandoned their 2000 ML55 AMG. This SUV is a little dated, but still sports a 350 hp V8, massive brakes, and a quality interior. Like the Sentra, it went for one-third of dealer pricing, for just $2,100.

When the auction is over, head to the counter to pay. Options vary by the place, and some take only cash, but most auctions accept plastic for an additional charge. Per the rules, you have one day to pay for the vehicle, and a week to get it off their lot. This gives you some time to complete a tune up, or get some decent tires under it, or possibly find a tow rig. Remember the comment on “evidence”? So yeah, do a deep clean of your car before you drive it around too much just in case.

That’s about the gist of attending a car auction. Any questions? Let us know if you have bought anything at an auto auction, and what advice you would recommend for the first timer.

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