Car Auctions has over time become a very popular way for individuals to purchase their dream cars and for dealers to maximise profits. Car auctions provide buyers an affordable means to purchase their dream cars without breaking the bank. It has also become a convenient way for insurance houses and used car dealerships to recoup money lost.

So Why Are Cars Auctioned?
There are a variety of reasons why cars end up at auction houses and some of them are;
- Some cars have stayed too long at the dealer’s car lot, so they are auctioned off as an alternative option to recoup investments.

- Some cars have suffered damage from weather conditions or accidents and after paying off the owners, the insurance companies want to recoup monies paid out. Due to the damage history, these cars can only be sold at auctions. The damages could include scratches, dents, or malfunctions as a result of thickened car fluids caused by winter.

- Some cars get to the auction house because they are being traded for a new one. In this case, private car owners exchange their old cars to get another car in return.

- The original owners cannot meet up with their payments, so they’re repossessed and auctioned off by financial institutions to recover their money.

Types of Auctions
Closed or Private Auctions:
These auctions are called private because they are usually for licensed car dealers and not for the public. This is the type of auto auction where some of your local car dealers come to buy the cars they sell.

Public Auction:
These are popular and happen frequently. These auctions are usually organised by major insurance and car auction houses. The idea behind the auction is to sell used cars that may have been repossessed, just used with little or no issues, rebuilt from damage or that insurance companies are trying to recoup money from.

Government Auctions:
These auto auctions are organized by the US custom service or some other government body. These auctions are organized to sell off old or excess automobiles including cars, trucks, bikes and so on that may have impounded or seized. In some cases like police auctions and government agencies, they sell them off to dispose of their old automobiles, when they replace or overhaul the entire fleet of vehicles.

Online Auctions:
This method of auto auction is now very popular as it seems to be one of the most convenient ways to buy a car without the need to be present or even be in the country where the car is located. At online auctions, mostly used cars are put up for sale, and prospective buyers register on their sites to join the auction. They rely on the information granted by the site to choose a car to buy. Online auto auctions have become so popular that there are so many sites now where you can join an auction. Here are some of the top online auto auction sites leading in the industry today. www.autoauctionmall.com , ADESA, Copart, Manheim and IAAI are a few of the leading online auctions today.

Going through multiple auction sites can be a strenuous affair and in the worst case scenario, you might miss out on a deal. But Auto Auction Mall’s partnership with the major auction houses in the U.S has allowed us to build the largest online marketplace where you can access the major dealer only and private auctions from one platform.

PROS and CONS of Online Auto Auction
Ever since the inception of online auto auctions, there’s been some advantages and disadvantages to its use. While you’re thinking of joining the long queue of online bidders, you should know some of the advantages and disadvantages of what you’re about to get yourself into.

Pros
1. Vehicles sold at online auto auctions are very cheap compared to buying from dealers. Anyone with a budget for a car can afford their dream car through online auctions.

2. Yes, It is possible to secure very functional vehicles at online auto auctions.

3. The most exotic brands of cars that should be expensive, are sold at very affordable prices. Any brand at all.

4. If you’re a collector of vintage cars, then you would love online auctions because vintage collectibles are very affordable here.

5. Most of the vehicles sold at auctions usually just have the wear and tear from normal use and in some cases, small scratches and dents except in the case of salvage vehicles that may come with heavy dents and mechanical or electrical damages.

Cons
1. Auction houses provide no guarantees on the vehicles or information provided as cars are sold “where is, as is”

2. All bids and offers are final and binding. This means that if you win a bid or an offer is accepted, you have to complete the purchase or face penalties

Next Steps for Interested Buyers
Now that you know what you’re getting yourself into, you need to know how to get into these auctions.
First, you need to know where to look. Again, it is important to know that most auction cars at public auctions are used vehicles which can only be in near new conditions with some thousand(s) of miles on them. If you want a new vehicle, you’re better off going to a major or sub car dealer.

The second step is to find an online vehicle auction platform that is not pricey, has hands on customer support, telephone assistance, allows you participate in dealer only auctions and has a variety of vehicle options to choose from. You can visit www.autoauctionmall.com, register and go through the inventory to make a choice.

The third step is to contact a representative of the platform, make further enquiries, get some buying power to enable you bid or buy, and schedule an auction for the car you chose.

In summary, once you have a clear understand of how auctions work, the type of auctions and the risks involved, car auctions are a vary affordable way t get your dream car without breaking the bank. The sad truth is that not everyone can afford brand new cars, that doesn't mean only a few deserve to own and drive cars.