Used car auctions are often a great place to find some top deals.  Depending on the type of auction you go to you may find an almost brand new vehicle for half the price.  While used car auctions have had some negative publicity in the past, many of the auctions are being regulated closely by the government.  There are three types of used car auctions: government, online, and local.

Government Auctions:
Government auctions are a place to find the best deals.  www.policeauctions.com and USGovernmentauctions.net are two online sites that can help point you to your local government auction.  The truth is many auctions are now online even if they have a local site.  However, we are going to talk specifically about going to a government auction versus attending online.  Auctions allow you to view the vehicle you are interested in on the lot.  You are not able to test drive the vehicle before purchase.

For this reason you have to look very closely at the vehicle, and have someone mechanically knowledgeable with you.  Auctions are an “as is” purchase.  Anything wrong with the vehicle should be listed on the information, so that you can purchase the car at the right price.  With government and police auctions you are buying repossessed or seized vehicles.  For example a police raid may have confiscated a criminal’s car and now they are putting it up for auction.  Police auctions use the money they make to help fund their department, so they typically start out at a lower auction price.

Local Auctions:
Local auctions are different from government sales.  A local auction allows a private seller to enter a vehicle.  The price the private seller wants is recorded, and the auctioneer will start the bidding at a price that helps the seller reach their needs.  The seller has to pay fees for selling at an auction, which can increase the price they want from the vehicle.  A private seller does have to list any major mechanic issues with the car.  Most auctions also tend to take only vehicles that run, or will at least stipulate in the auction if the vehicle does not run.  You cannot test drive the vehicle, but often the vehicle is started for you and driven to the auction block, so you can hear it running.

Online Auctions:
Online auctions can be local or government affairs, but typically when someone says online auction for used cars they are thinking about eBay.  EBay is the largest online auction site around the world for all things including used cars.  With eBay there are rules for how the vehicle can be listed.  A buyer is protected on eBay more so than local auctions.  This is due to the buyer and seller agreement.  When you enter a bid on a vehicle you are doing so based on the seller advertisement.  If the advertisement is found to be untruthful you do not have to go through with the sale.  However, if you are top bidder and the vehicle is as advertised you are locked into purchasing it.