Buying or selling your car in an auction can give you a
headache if you do not have any idea what you are getting
yourself into. Let me give you some answers for the most
frequently asked questions about auctions.
 
What is an Auction?
 
An auction is one of the first means of doing business and
profitable exchanges. History books show that art, land, crops
even people were being auctioned off in the past. Hey, even the
Roman Empire was auctioned.
 
What about Automotive Auction?
 
An auto auction is the ideal environment for car dealers to
remarket their cars. This is the perfect opportunity to make
the big bucks and get that great sell that you have been
waiting for. The true market value of the vehicle is also
determined once a vehicle is put on an auction block.
 
Auto auctions exist to market cars. Its main objective is to
make the deal fast and accurate. It serves as the impartial
trading floor which offers security and integrity to the
participants. It also varies in size depending on the number of
employees, cars or how big the area they occupy.
 
Auto auctions may also offer different services like, repairs,
reconditioning, financing, arbitration and a host of other
services.
 
How do I participate in an auto auction?
 
As there are a number of auction houses available, choose a
reputable auctioneer to buy or sell your car to. Keeping in
mind the kind of car you want to sell or buy, the geographical
convenience and the services the auction operators offer, these
factors will determine the auction you will want to participate
in.
 
Be also aware if the auction is an open or closed auction. Open
auctions, as the term suggests, are open to any registered
dealer. Most auctions are open but may be tailored to specific
kinds of vehicles like car fleets, rentals, repossessed units
or special dealer consignments. A closed auction is limited to
specific participants.
 
It is also advised to check the websites of the auction houses
you want to participate in. It is a good idea to request for an
auction tour. This will give you the chance to inspect their
facilities and operations. This is also the best time to ask
and clarify details such as the biding process, services
offered and other questions which comes to mind when you are
inspecting the lot.
 
Once you have decided which auction house to participate in,
get the necessary paper work done and be sure to have an
identification card and a bidders badge. If you are buying,
get a hold of the run list, which is a computerized list of
vehicles being auctioned off on a specific date, the commercial
consignor and similar information. It is also a good idea to get
a sales lot parking plan. Vehicles are typically grouped and the
parking lot plan will help you locate which lane to go to.
 
What is a floor price?
 
Also known as the reserve or low, the floor price is the
lowest price the seller is asking for. If the price is not met
while on the block the seller can lower it to attempt a sale.
If the floor price is still not met, the vehicle can be placed
in the if bid where the bidder agrees to buy the vehicle if
the seller agrees to his offer in a specific period of time.
 
How do I evaluate the vehicles?
 
There are usually pre-selling inspections where you can
appraise the vehicles that are being auctioned off. Each
vehicle has a windshield marking where information like the
sellers name, model of the vehicle, mileage, run number and
lane assignments are posted.
 
For a fee, post sale inspections are also available in some
auction houses, where auction mechanics are available to check
the engine, air-conditioning, brakes, frame, transmission and
the rear end.
 
It is also wise take advantage of the free arbitration services
which protects the interests of both the buyers and sellers of
the vehicles. You can also test-drive the sold car if you
present a valid I.D. to the arbitration department. Most
auction houses have test tracks, so make use of this service
and be assured that you got your moneys worth.
 
What happens after I won the bidding?
 
After your purchases have been completed, go to the front
office of the auction house and finalize your transactions by
making the required payments. The title is then transferred to
your name. A gate pass will be issued for your purchased
vehicle.
 
What are Internet Auctions?
 
Auction houses are taking advantage of the present technology
available to them. Cyberlots or cyber auctions allow sellers to
post their vehicles on the net, including photographs and
information about the specific car they want to sell. Most
cyber auctions have limited time frames.

About The Author: Perry Gibson is a long time auto auction
attendee and also, co owner of http://usautoreview.com Here he
helps shed some light on auto auctions