Understanding the Difference Between Preliminary and Live Bidding

Finding a great deal on your next car at an online auction can be exhilarating. As a first-time bidder on AutoBidMaster, you might not know what to expect. The difference between preliminary bidding and live bidding is an important distinction to understand.

Copart auctions have two bidding stages. Understanding how each works can help you bid strategically and avoid missing out on a vehicle you want.

In this article, we’ll explain the differences between the two bidding methods, outline the advantages and disadvantages of each, and cover the rules that determine tie-breakers.

Key Takeaways

• Every auction has two stages: preliminary bidding, which opens when a vehicle receives a sale date, and the live auction on sale day.
• Preliminary bidding uses Bid4U, which places bids on your behalf in increments up to your maximum bid. Your maximum bid remains hidden from other bidders.
• The live auction opens where preliminary bidding closes, so your pre-bid helps establish the starting price.
• If a preliminary bid and a live bid are tied, the live bidder wins the lot.
• You can increase your maximum bid before the applicable cutoff, but submitted bids cannot be lowered or withdrawn.
• Bid increments vary by price range rather than a fixed amount.
• Live auctions move quickly and typically last a few minutes.

What Is Preliminary Bidding?

Preliminary bidding, also known as proxy bidding, lets you place a maximum bid on a vehicle before the live online auction begins. This allows you to set your spending limit in advance. The system bids on your behalf automatically without exceeding your maximum.

Preliminary bidding opens once Copart lists a vehicle and assigns it a sale date. This usually gives you days or weeks to research the lot before the sale day.

Here’s how preliminary bidding works:

1. Find the vehicle. Before the auction begins, browse online inventory to find the vehicle you want to bid on.
2. Decide on your maximum bid. After accounting for estimated repair costs, titling and registration fees, and other expenses such as transportation and insurance, set your maximum bid — the highest amount you’re willing to bid for the vehicle.
3. Submit your preliminary bid. On AutoBidMaster’s online platform, enter your maximum bid amount. This becomes your preliminary bid.

Once your preliminary bid is in place, Bid4U automatically places incremental bids on your behalf during both preliminary bidding and the live auction, up to your maximum. You may win the vehicle for less than your maximum bid if competing bids don’t push the price higher.

Your maximum bid remains hidden from other bidders, who can see the current bid but not your maximum.

Benefits of Preliminary Bidding:

• Convenience. Many people use this method because they don’t have to be present during the auction. Once you place your bid, you can go about your day as usual.
• Bid on multiple vehicles. If you have your eye on several vehicles, preliminary bidding lets you participate in multiple auctions at once.
• Discipline. The auction process can be exciting, and it’s easy to get swept up in the moment. Setting a maximum bid helps you stay within your budget.
• Potential savings. You may pay less than your maximum bid if competing bids don’t push the price higher.

Drawbacks of Preliminary Bidding:

• You can’t lower or cancel it. Once a bid is submitted, it can’t be retracted. If you’re outbid, you’ll receive an email and can increase your maximum bid. However, you can’t take back or lower a submitted bid, so choose your maximum carefully.
• You lose ties. If your preliminary bid and someone else’s live bid are the same amount, the live bidder wins the lot.

What Is Live Bidding?

Live bidding is the online equivalent of bidding at a traditional in-person auction. You need to be virtually present during the live online auction to participate.

On sale day, vehicles are auctioned one at a time in order. When your vehicle comes up for bidding, a countdown timer starts. Additional bids may extend or reset the displayed countdown. When the auction timer runs out without another bid, the lot sells.

Bidding moves fast. Most lots sell in a few minutes.

Here’s how live bidding works:

1. Join the live auction. Log in to AutoBidMaster to join the auction when it starts.
2. Monitor the bidding activity. The platform displays the current bid amount, the number of bidders, and the countdown timer.
3. Submit your bids. As the auction progresses, place bids to compete with other bidders. You can bid the next standard increment or place a Monster Bid — a jump of several increments to your chosen amount. A Monster Bid allows you to submit a larger bid amount rather than bidding only the next increment.

Advantages of Live Bidding:

• Real-time adjustments. You can adjust your bids based on the competition. If bidding is less active than expected, you can wait and place your bid closer to the end.
• Sense of control. Live bidding gives you more control over the process. You can track competing bids and make decisions in real time.
• You win ties. A live bid takes precedence over a preliminary bid of the same amount.
• Monster Bids. Jumping several bid increments at once may discourage other bidders from continuing to compete.

Disadvantages of Live Bidding:

• Requires active participation. You need to be present and focused during the live auction, which can be inconvenient if you have scheduling conflicts.
• Potential for bidding errors. The fast pace can lead to accidental mistakes. Double-check your bids and stay within your budget.
• Emotional bidding. The excitement of a live auction can lead to impulsive decisions that push you over your budget.

Preliminary vs Live Bidding: Key Differences 

One point that connects the two stages: the live auction opens at the highest preliminary bid. If pre-bidding ends at $3,200, live bidding starts there. Your pre-bid helps establish the opening price and gives other bidders a starting point.

If no one bids higher during the live auction, the highest auction bidder wins the lot.

A Note on Bid Increments

Increments aren’t fixed. They scale with the current bid, so a cheap lot moves in small steps while an expensive one jumps in larger ones. Check the increment for your lot before the auction so you can account for it when placing a Monster Bid and stay within your budget.

How to Win With Preliminary Bids

Do the math before you enter a number. Set your maximum based on the vehicle’s realistic value minus repair costs, transportation, fees, and registration. Work backward from what the finished car is worth, not forward from what feels affordable.

Avoid obvious round numbers. Many bidders set maximums at $3,000 or $5,000. A bid of $3,050 or $5,075 may give you an edge over competing bids below those amounts.

Place your bid early. A preliminary bid lets Bid4U place bids on your behalf as needed, so you don’t have to monitor the auction constantly.

Watch your email. If you’re outbid during preliminary bidding, check for a notification and raise your maximum if you’re still willing to pay more before the live auction begins.

Remember the tie rule. If a live bid beats an equal preliminary bid, set your maximum at an amount you’d genuinely be willing to pay rather than relying on a tie to win the lot.

How to Succeed in Live Bidding

Be logged in early. Lots sell in item number order and move quickly. Being a few minutes late can mean missing the vehicle entirely.

Know your walk-away number before the timer starts. Decide on your limit in advance and write it down. The live auction is not the place to do arithmetic.

Bid incrementally. Small steps help you stay in control. Save Monster Bids for situations where you want to jump several increments at once.

Watch the timer reset. Each new bid resets the clock. A lot that looks like it’s about to sell can go through several more bidding rounds.

Let it go when it passes your limit. There will be another vehicle. Once you win a lot, you generally can’t simply reverse the decision.

Choosing Between Preliminary and Live Bidding

The best method depends on your circumstances, preferences, and risk tolerance.

Use preliminary bidding if:

• You have a strict budget and want to avoid the temptation of overbidding in the heat of the moment.
• You have scheduling conflicts that prevent you from actively participating in the live auction.
• You’re interested in multiple vehicles and want to bid on several auctions at once.

Use live bidding if:

• You’re comfortable with the fast-paced environment and enjoy the excitement of real-time bidding.
• You want to respond to competing bids as the auction unfolds.
• You prefer more control over your bids and want to make adjustments throughout the auction.

Or use both. You can place a preliminary bid and still join the live auction for the same lot. Bid4U places bids on your behalf up to your maximum, and you can continue bidding manually if you decide the vehicle is worth more. This approach lets you bid in advance and respond to the competition in real time.

Common Mistakes to Avoid

Treating a pre-bid as a guess. A preliminary bid is a commitment. You can raise it, but you can’t cancel or lower it once submitted.

Assuming the highest pre-bid wins. Being the highest preliminary bidder doesn’t guarantee a win if live bidding takes place. Live bidders can still compete for the lot.

Bidding your absolute ceiling with no room for fees. The winning bid isn’t the final cost. Buyer fees, gate fees, transportation, title, and registration costs come after.

Misreading the timer. The timer resets with each new bid. A lot that looks close to selling can go through several more bidding rounds.

Overshooting with a Monster Bid. If you don’t know the bid increment, a Monster Bid can push your offer well above what you intended.

Chasing one vehicle. Salvage inventory changes constantly. Treat every lot as replaceable, and you’ll be better positioned to stick to your budget.

How AutoBidMaster Simplifies Both Auction Bidding Types

AutoBidMaster is a registered Copart broker, allowing public buyers to access Copart inventory without holding a dealer license.

You can manage both bidding stages through the same account. Place preliminary bids from the lot page, and Bid4U places incremental bids on your behalf during the live auction, up to your maximum. On sale day, you can also join the live auction from the same dashboard to follow the current bid and countdown timer and place standard or Monster Bids.

You’ll receive email notifications if you’re outbid during preliminary bidding, so you can raise your maximum before the live auction starts.

Your membership level affects bidding limits and live auction access. Check which tier matches your buying plans before your first auction.

Additional Tips for Success in Online Auctions

Regardless of which method you choose, these tips can help you bid wisely and get a good deal:

• Research the vehicle. Look into the specific model year, mileage, condition, and typical market value. Review the listing details and vehicle history report to understand the vehicle’s background and potential repair needs.
• Set a realistic budget. Determine the maximum you’re willing to spend, including the purchase price, estimated repair costs, registration fees, and insurance. Stick to it.
• Inspect the vehicle if possible. Where a Copart location permits it, buyers may be able to inspect vehicles during posted preview hours. If you can’t attend, study every photo and listen to any engine audio included in the listing.
• Understand auction fees. Broker fees, virtual auction fees, gate fees, and document processing fees all add up. Factor them into your maximum bid.
• Bid incrementally. During live bidding, stick to smaller increments to keep your bids under control.

FAQ

What is preliminary bidding?

Preliminary bidding is the first stage of an auction and opens when a vehicle is assigned a sale date. You enter the maximum you’re willing to pay, and the Bid4U system bids on your behalf one increment at a time, up to that maximum. Your maximum bid stays hidden from other bidders, and you can win below it if bidding doesn’t reach that amount.

How does live bidding work?

On sale day, vehicles go up one at a time in item number order. When your vehicle comes up for bidding, a countdown timer starts and resets with each new bid. You place bids in real time, either at the standard increment or as a Monster Bid of several increments at once. Most lots sell in a few minutes.

Can I bid in both phases?

Yes. You can place a preliminary bid and still join the live auction for the same lot. Bid4U places bids on your behalf up to your maximum, and you can continue bidding manually if you decide the vehicle is worth more.

Which bidding method is better for beginners?

Preliminary bidding is often easier for beginners. It helps you stick to a budget, doesn’t require you to attend the live auction, and removes the pressure of fast, real-time decisions. Once you’ve watched a few live auctions and understand the pace, adding live bidding gives you more flexibility and an advantage in ties with equal preliminary bids.

Can I cancel or lower a bid?

No. Bids cannot be retracted once submitted. You can increase a preliminary maximum if you’re outbid, but you can’t cancel it or lower it.

What happens if two bids are the same amount?

The live bid wins. A preliminary bid loses to a live bid of equal value, so your maximum should be a number you’d genuinely pay.

Does the highest preliminary bid win the auction?

Not necessarily. The highest preliminary bid sets the starting bid for the live auction. Other bidders can still bid higher, and the preliminary bidder may win if no competing bid surpasses theirs.

By understanding the differences between preliminary bidding and live bidding and following these tips, you can approach online car auctions with confidence and find the right repairable vehicle at a good price. For a better understanding of AutoBidMaster’s online auto auction bidding process, visit our Help Center.

Sources consulted:

• AutoBidMaster Help Center – What Are Auction Stages and Bid Types?
• AutoBidMaster Help Center – Preliminary Bidding
• AutoBidMaster Help Center – Live Auction
• AutoBidMaster Help Center – Bid4U
• AutoBidMaster Help Center – Auction Glossary
• Copart Support – Copart Bidding Process
• AutoBidMaster Help Center – How to Bid on Preliminary and Live Auctions?
• AutoBidMaster – Bidder Registration