How does an auto auction work?Every auto auction I have been to generally operate in the same manner a vehicle is put on the auction block and the seller tells the auctioner what his lowest price to sell is and the auctioner begins the bidding process.There are several components to an auto auction but they all generally operate in the same manner. Before the auction begins, the seller lets the auctioner know what his reserve price is. The reserve price is the lowest price he must recive in order to sell the vehicle. If the auctioner does not recive this during the bidding process then it becomes a no sale.
Note:Most people do not realize that the item does not have to sell at an auction unless it meets or recives the reserve price and if the seller tells the auctioner that he wants to see what it brings then he is not obligated to sell it at all. The Auctioner usually open the bid at or slightly higher than the reserve price to see if there is anyone interested in the vehicle. This is where I have seen alot of people get into trouble by paying to much for a vehicle and it is usuallu due to emotion (really really likes the car) or lack of knowledge (does not know the values). If no one bites at the bid than the auctioner will drop the bid price considerably to generate interest in the bidding process. I have seen a auctioner go from $12,000 bid price and drop to $1,000 and everybodys eyes light up at the thought of getting a $12,000 car for $1,000. But the bid very quickly goes back up to the area of the reserve. Again if it dosent bring what the seller needs than it is a no sale, but if a bidder hits the reserve or there are a few people and the price is bidded up then it is a sale. You have to remember that there are additional fees in an auction purchase and they should be factored in when bidding on a vehicle. Once the auctioner announces SOLD it is your car from that moment on, you go over to the auction block and sign your buy slip and go pay and get the title. Dont forget to immediatly go and lock your car, if someone steals the radio its your car so its your responsibility. return from Auto Auction to How To Buy A Used Car
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