Security Deposit: A Breakdown of What It Is and Why Do You Need It

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AutoBidMaster follows the industry trends, and we make sure your buying experience is always successful. We have been providing direct access to live car auctions since 2009, so we know the business pretty well. Since then, there has been one requirement for all customers. Each client has to place a refundable security deposit. Although many customers are puzzled when they see this particular rule, don’t worry. Understanding the main principles of a car auction will help you bid on salvage cars without hesitation. That’s why we’re ready to tell you what the security deposit is and why it’s essential.

How Does AutoBidMaster Work?

Before we break down the security deposit and why you need it. Let’s first learn more about AutoBidMaster and why this platform is so popular among people. This is essential because not a lot of people are familiar with AutoBidMaster and do not know the basics.

AutoBidMaster is a popular online car auction platform that allows users to bid on and purchase vehicles. These vehicles can include cars, trucks, motorcycles, and more. What AutoBidMaster primarily does is provide access for non-dealers to take part in Copart auctions. These auctions are known for offering a wide range of vehicles, including salvage and clean title cars. Here’s a step-by-step guide on how AutoBidMaster works:

1. Registration

In order for you to start using AutoBidMaster, you need to create an account on the AutoBidMaster website. You’ll need to provide basic information such as your name, email address, and phone number. After registering, you may need to verify your account through an email confirmation.

This is an essential step because without having an account, you are not able to bid on cars at all. So, register now and participate in the best auto online auctions.

2. Membership Plans

AutoBidMaster offers different membership plans. There are 4 plans in total. Starting from zero dollars, up to $349 annually.

The basic membership plan is the Guest, this plan will cost you $0, then you have the basic, which starts at $69, above this you have the Advanced which starts at $199, and the most expensive is the Premium which starts at $349.

Depending on your needs, you should pick your favorite. However, the sweet spot is definitely the Advanced plan. With this plan, you get the most for your money and you have no bidding limits.

3. Browse and Search

Once registered, you can browse the available vehicles using various filters such as make, model, year, location, condition, and auction date. 

The AutoBidMaster platform provides detailed listings with photos, vehicle history reports, and other relevant information to help you make an informed decision.

4. Placing Bids

In order for you to place a bid, you need to select the vehicle you are interested in and submit your bid amount. AutoBidMaster allows you to place preliminary (pre-bids) before the live auction starts, and you can also participate in the live bidding process. You can set a maximum bid, and the system will automatically increase your bid up to that limit during the auction.

However, in order for you to be eligible to place a bid, you need to make a security deposit beforehand. This is an essential security measure for AutoBidMaster. These security deposits are 100% refundable, so you should not worry about anything.

5. Winning the Auction

Now let’s take a look at what happens if you win the auction. In this case, you will receive a notification with instructions on how to complete the purchase.

These instructions include paying for the vehicle and any fees associated. The recommended payment method for this purpose is wire transfer.

6. Payment and Fees

In addition to the winning bid amount, you will need to pay a transaction fee to AutoBidMaster, which varies based on your membership level.

Higher membership levels have lower transaction fees, while lower membership levels have higher transaction fees.

Other fees include auction fees, documentation fees, and storage fees if the vehicle is not picked up promptly.

7. Vehicle Pickup and Shipping

After payment is completed, you can arrange a vehicle pickup from the lot. AutoBidMaster gives you assistance with transportation and shipping. This is extremely handy for international buyers.

8. Title and Documentation

Once the vehicle is paid for and picked up, AutoBidMaster will process the title transfer and send you the necessary documentation. The time frame for this step can vary depending on many different factors, so it’s important to check the estimated processing time. However, it shouldn’t take more than a few weeks for the whole process from start to finish.

9. Customer Support

AutoBidMaster offers great customer support that will assist you with any questions. Including how to make a security deposit, how to bid, and how to pay for the bid that you won.

This support is available via the phone, email, or live chat. The Premium membership even includes a manager who is dedicated to you and he has only one role, to assist you in the best way he can.

This is why we recommend choosing a higher membership because with this type of membership, you get the lowest transaction fees and also the best customer support out there.

What Is Security Deposit

The security deposit on car bidding sites like AutoBidMaster is a hold from your card that guarantees that you’ll complete your purchase. Basically, it’s not a charge. According to our current terms and conditions, the security deposit is 10% of your intended maximum bid. The minimum is set at $600 at the time of writing.

Why Does AutoBidMaster Require Placing The Security Deposit

First of all, placing the refundable security deposit is a must before you can start bidding. We require the security deposit to eliminate the risks related to the cancellation of the sale. If a customer fails/refuses/doesn’t want to complete their purchase, the security deposit can be forfeited. It also determines your maximum possible bid. Members with guest membership can bid on salvage cars worth no more than $2,500, while those with a basic subscription can buy vehicles valued up to $6,000. Advanced and Premium members on AutoBidMaster auction can bid on any car they like without restrictions. Address this article for more information on buyer power. Also ClearVin offers fast and easy access to the original Toyota Window Sticker by VIN.

FAQ on The Security Deposit on AutoBidMaster Auction

Question: How to make a bid deposit?

Answer: In order for you to make a bid deposit, you need to fill up the car deposit form. This vehicle deposit form is essential in order for you to start bidding. Without a security deposit, you are not able to bid on vehicles because you don’t have security.

In order for you to make a deposit, you need to log into your AutoBidMaster account and find the “Deposits” section. Then you should select the deposit amount. For example, $400. Then, choose the deposit method, for example, a credit card. After you pay for the deposit, you should have a bidding limit of about $4,000.

You can verify the deposit limits and make sure that everything went through correctly. If you want to have a higher bidding limit, you should make a stronger deposit.

Question: Can I get an AutoBidMaster deposit refund?

Answer: Yes, AutoBidMaster has a refundable security deposit. So, what this means is that you can decide to get your money back and you will be able to do so.

Getting a refund is rather simple. Just log into your AutoBidMaster account and find the deposit section in the settings menu. Then, you can select the refund option and submit a request. It is an extremely simple thing to do.

The refund will use the same payment method that you used to deposit your funds and this refund can take between 3 to 7 business days. In other words, it does not happen instantly, so you shouldn’t panic. Be prepared to wait for some time and your funds will be available to your account.

Question: What does release deposit mean?

Answer: “Release deposit” typically refers to the process of refunding or returning a deposit that was previously made. This means that you are requesting AutoBidMaster to release your deposit. Once you do so, your funds will return to your account. This is a process that is usually initiated when the user does not want to participate in auctions and wants to withdraw unused funds. In case you want to participate in the auction again, you will need to make another deposit.

Question: How to make an AutoBidMaster deposit refund?

Answer: In order to request a refund from AutoBidMaster, you need to go into the “Settings” section. In the Settings section, you will find the refund option. Then, you can request a refund.

This process can take a while, it doesn’t happen instantly, so you need to be prepared to wait for some time. Usually refunds happen in 3 to 7 work days.

In case you want to bid again, you will need to make another security deposit to your account.

Question: Is my security deposit refundable?

Answer: Yes, indeed. Typically, AutoBidMaster refunds the security deposit right after the vehicle is released from a yard. Deposits made from bank cards automatically expire after 30 days,  provided that you haven’t bought a vehicle yet. Then you’ll have to renew it to be ready for bidding. However, you can request a refund at any time if you don’t have any debt, incomplete transactions, or outstanding balances with AutoBidMaster.

Question: How do I increase my security deposit?

Answer: You can do it straight from the main page in your personal account either by clicking on the “Buyer Power” or on the “Deposits” tab. Or you can do it through the bidding field by entering the maximum amount you wish to pay for a car. Then you will be redirected to the page offering to increase the deposit according to your maximum bid.

Question: What payment methods does an AutoBidMaster auction accept?

There are multiple ways to complete the transaction. 

We accept:

• credit cards,
• Google pay,
• standard bank wire transfer.

Question: What are the AutoBidMaster payment options?

Answer: When it comes to membership payments, other fees, and security deposits, you can use a credit card, Google Pay, or Bank Wire transfer.

When it comes to paying for the actual vehicle, you need to initiate this payment with a wire transfer. This is essential because these transfers are very high compared to your typical deposit.

Question: Is the deposit included in the final price of a vehicle?

Answer: The deposit is not included in the final price of the vehicle. The final price is paid via bank transfer and it does not include other fees that you previously paid for memberships or deposits.

However, if you want to get your deposit back once you are done bidding, you can do so and request a deposit refund.

Question: What if I refuse to complete my purchase?

Answer: If you decide not to pay for the vehicle, you will lose your deposit money. Simple as that.

In many cases, this could be a few hundred dollars but in some cases with more expensive vehicles, it could cost you a few thousand dollars in the process.

Last Word

The AutoBidMaster team hopes that everything regarding the security deposit is much more clear now. Thanks to the deposit and the suitable membership, you can access more than 300,000 cars anywhere, anytime, at your discretion. Nothing should stop you from the great delight of taking part in live car auctions. We get that you’re ready to start, so don’t miss out. Create an account with us, upload a copy of your government-issued ID, and be sure to place the security deposit. Once you’re done with this, grab the membership level that will suit you. Enjoy the discounts for Columbus Day and start discovering our inventory: enter the promo code COLUMB21 at the checkout page until 10/22 to get 30% off membership! Reach out to us at +1 (503) 298-4300 (6:00 AM – 4:00 PM Pacific Standard Time, Monday to Friday), and we’ll be happy to answer your questions.