Online Public Auto Auctions: Things to Know for Newbies

Buying a vehicle through an online auto auction can be very different from buying one from a dealership or private seller. Before you place your first bid, it helps to understand how auction sales work, what different sale statuses mean, how bidding works, and what costs may apply beyond the winning bid.

A great piece of advice for any car auction participant is to research the vehicle before bidding. You can conduct a license plate lookup or use a free VIN number check from our partners at ClearVIN to learn more about the vehicle’s history.

Below are some key things every first-time participant should know before bidding at an online public auto auction.

Sales Status

The first thing you need to know about online auto auctions is the sales status. The sales status of a listing basically indicates how the vehicle will be sold. Common types include:

• Pure Sale: There is no minimum bid or reserve price, and the vehicle is awarded to the highest bidder at the end of the auction.
• Minimum Bid: The seller sets a minimum price for the vehicle. If the highest bid does not meet that price, the seller may choose whether to accept the bid.
• On Approval: The seller must approve the final high bid before the sale is completed.
• Buy It Now: Some vehicles can be purchased immediately at a seller-set price without going through the regular auction.

Understanding the sales status can help you know what to expect after you place a bid.

Auction Stages

This is another important aspect you should know before participating in online public auto auctions. Broadly speaking, there are two stages in an online auto auction:

• Preliminary Bidding: Before the scheduled sale, you can place bids on a vehicle or use the Buy It Now option, if available.
• Live Bidding: When the sale date arrives, the vehicle enters the Live Auction, which moves quickly and typically lasts only a few minutes.

If you cannot follow the auction live, Bid4U can place bids on your behalf. You set a maximum amount, and the system bids automatically during the Live Auction up to that limit.

There is no fee simply for placing a bid. If you do not win, you can use your deposit for another auction or request a refund.

Buyer Power

Buyer power is the maximum amount you can bid on a vehicle based on your security deposit. The minimum deposit is $600 or 10% of your intended bid amount, whichever is greater.

For example, a $600 deposit gives you up to $6,000 in Buyer Power.

Your buying power is not the same as the total cost of the vehicle. Auction fees, transportation, and other applicable costs may be added to the winning bid.

Max Bid and Monster Bid

Two other terms you may encounter at online auto auctions are Max Bid and Monster Bid.

Max Bid is the maximum amount you are willing to bid. Bid4U can automatically increase your bid when necessary, up to your set maximum.

Monster Bid increases the current bid by a larger amount instead of waiting for the regular bid increment.

Understanding these terms can help you make more informed bidding decisions and avoid confusion during a fast-moving Live Auction.

Car Auction Dates Bring Structure to Your Search

For buyers looking for structure, car auction dates are invaluable. They help you organize your time, prioritize auctions that suit your needs, and focus on the vehicles that matter most to your goals.

Knowing the auction date also helps you plan when to place a preliminary bid or follow the Live Auction.

Consider the Total Cost

The winning bid is only part of the total cost of buying a vehicle at an online auction. Depending on the vehicle and destination, you may also need to account for auction and broker fees, transportation, shipping, customs, and other applicable costs.

AutoBidMaster’s Final Cost Calculator can help you estimate the total cost of buying a vehicle and having it delivered to your chosen location before you place a bid.

Final Thoughts

Buying a car through online public car auctions can be a fun and rewarding experience, but you must proceed with caution. Make sure you inspect the vehicle you want to buy, or get it inspected by a professional, before you place your bid.

Most importantly, take time to understand the vehicle’s history, sales status, bidding process, and potential total cost before committing to a purchase. A little preparation can help make your first online auction experience much easier.

Need help? Please call +1 (503) 298-4300, Monday through Friday, 4:00 AM to 4:00 PM (Pacific Time). Our dedicated team will be happy to help.