How to Bid at a Car Auction

Car auctions come in different forms, including wholesale auctions that are only open to licensed car salesmen. Public car auctions, such as those held by a car rental company or the local sheriff's department, are open to all bidders. You have the chance of finding and purchasing a car for much less than you would from a dealer. All buyers are expected to bid on cars at a specific date and time.

Instructions

1

Read the details of the car auction carefully, including the details on a buyer's premium or any other additional fees. This tells you how much you can expect to pay for a car. A buyer's premium is a fee charged on top of your purchase price and may be up to 10 percent or more of your purchase price. Check for payment information, as some car auctions only accept cash and others require a bank draft.

2

Get to the auction early and carefully examine any cars that you're interested in purchasing. Getting there early, also gives you time to register as a bidder and receive a number. Read the descriptions of the vehicles you like and get the VIN number for each one.

3

Bring a price guide with you and check the value of each car. At wholesale auctions, dealers often carry a Black Book, which lists the prices of cars sold at wholesale auctions across the country. For a public auction, bring a Kelly Blue Book or Edmund's price guide, which gives you the value of cars, based on age, model and condition.

4

Do a quick background check on any vehicle that you like. It's helpful to bring a smart phone or have someone at home that can check the cars for you. Search through Carfox or a similar program, using the VIN number to find the exact history of the car. This tells you any damage or accidents the car was involved in, in the past.

5

Create a budget before attending the car auction and stick to that budget. Base the budget both on the value of the car and what you can afford to spend. It's easy to get caught up in the auction setting and pay too much for a vehicle.