Specialist Auction Tips

Public Auto Auction: Who, where and When

If you are looking for a way to purchase your new car cheaply, public auto auctions are very much the way to go. First of all it’s important to know the difference between a closed auction and public auction.

Closed vs. Public

A closed auto auction is an auto auction that is only available for registered car dealers. The public at large are therefore not allowed to partake in these, and therefore it’s not classed as a public auto auction. These events serve as a crucial part in the life of car dealers. It is the primary method in which they rotate surplus inventory. Close attention is paid to the vehicles’ condition with a significant stockpile of recent trade-ins and new cars being auctioned off. If you intend on building a business around trading cars purchased at auto auctions, it is advisable to apply for a car dealer registration. It is a time consuming process, but well worth the wait and effort. Every state has different laws that regulate new dealer registrations, but most require that you pass the DMV test, set your shop up at a suitable zoned area and have the property approved by a DMV inspector.

Click here for upcoming and live Car Auctions

However if you’re on the lookout for that new family car bargain, or intend on purchasing vehicles less frequently than car dealers, public auctions is your first stop. Unlike closed auctions, these are open to everyone. These auctions are used by a number of different organisations. I like to split them into two major categories, i.e. Private and Government

Private

· Financial Services Companies. These include retail banks and other finance corporations that are involved with vehicle financing. These companies use auctions in order to sell off-lease returns. This constitutes a big chunk of vehicles sold at public auctions countrywide.

· Car Rental companies and other businesses. Rental companies usually have internal policies in terms of the age of their fleet. As the fleet matures, it needs to be replaced with later models. They dispose of the older ones by way of car auctions.

· Car Dealers. Dealers often use open public auctions to get rid of any unwanted vehicles.

Government

There are countless government agencies at all levels that constantly dispose of their surplus vehicles. This includes the federal, state, county and city governments.

Various government agencies also manage their own disposal of seized and repossessed vehicles at public auto actions. These agencies are the IRS, Drug Enforcement Agency, Federal Bureau of Investigation, USMarshall office, your local police department and many more. These government auctions are the source of enormous bargains and occur daily across the country in all states.

So how are these public auto auctions conducted? This depends entirely on which auction you attend. Many government agencies conduct auctions on their own, whilst others contract the services to a private auctioneer. Some conduct it online while others are held live. Generally there are 3 ways to buy at a public vehicle auction. These are public outcry, on-line and sealed bids.

To read about the different types of public car auctions, continue reading on Page 2.

 

Need information on car auctions in your area?

If this is you, I highly recommend you to visit Gov-Auctions.

This is a very accurate database frequently updated with public auctions across the country. The vehicles are both inexpensive and pristine quality. Click here to have a look!