Repo Car Auctions: An Overview of the Different Kinds

There are a few different kinds of repo car auctions. They include:

Private: These are open only to those who have received an invitation or are part of a certain group.

Dealer-only: At some repossessed auto auctions, only licensed dealers can attend, bid on vehicles and make purchases. Most states allow you to sell a certain number of cars annually before you are required to get a license. Even if you are just looking to buy and sell repo autos part-time, getting a license can increase your profit and improve your inventory because you will be able to go to more auctions.

Government: Different government agencies periodically run auctions. These typically include goods seized by the police as well as surplus materials and vehicles from local government entities. They may include repossessed cars as well. These auctions are open to the public.

Public: Auctions that are public are open to everyone. Typically you will need to provide a photo ID to register to bid at the auction.

Live: Most repo car auctions are live where you bid back and forth with the other bidders until the auctioneer announces the final bid. If the highest bid is not outbid again, that one wins the auction and purchases the car for that amount. There is usually a set starting bid but no reserve. Since everyone is together and it goes pretty quickly, it is easy to get excited and emotional and overbid, especially if someone in particular continues to outbid you. Keep your highest bid in mind and don’t be tempted to go over it. There will be other cars. Better to be patient than overpay.

Silent: Repo cars can also be sold by silent auction. Usually a silent auction is run by having all bids placed in sealed envelopes. When the auction time is finished, the bids are opened up and the highest one wins. You want to bid high enough to be the highest bidder but not too high.

Online: These auctions are nice because you can bid from the computer and set it to continue bidding until it hits your maximum. But it can be tricky to inspect cars and transport them if they are not available locally. Use caution and reputable website to avoid scams and problems.

Posted: April 27th, 2010 under Uncategorized.
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