I recall when my sister and her husband chose to lease a new Ford Fusion Hybrid in 2015. Being strictly a used-car person, I envied how pristine and spotless it looked. It was quiet, loaded with current tech and excellent on fuel economy.
The only thing that bothered me was the monthly lease payment of $390. Four years earlier, I’d only spent $10 morefor an entire vehicle.
Believe it or not, I purchased a car for $400.
How Buying a Car at Auction Works
I bought my 2001 Chevrolet Cavalier in a rather unconventional fashion: at a car auction.
Auto auctions let buyers obtain used vehicles through a bidding system, which often leads to lower prices than those at a dealership.
While many auto auctions are reserved for dealers and require a dealer license to bid, a quick online search will reveal public auto auctions across the country. Additionally, internet auto auctions such as eBay Motors allow you to purchase a vehicle from your couch.
Car auctions aren’t as common as brick-and-mortar lots, and you run a higher chance of landing a clunker. But with caution, you can snag a major bargain like I did.
My Auction Car Buying Story
At the time, I worked for a newspaper, and the company was trying to offload some of the older cars in its delivery fleet via a blind auction for employees.
When the opportunity was announced, I didn’t initially think much of it. After all, I owned a reliable vehicle — a 1999 Lexus RX 300 — that had been with me through college and many trips along the eastern seaboard. It was my pride and joy. Dependable and getting me where I needed to go.
There was one snag: my boyfriend then and I were living together and sharing a single car; that arrangement wasn’t ideal. Buying a new vehicle wasn’t a top priority, yet we couldn’t pass up the chance to place a modest bid when the auction rolled around.
Back then, my notion of buying a car meant visiting a lot and committing to monthly payments or saving for a decent used vehicle. I’d never seriously considered a car auction.
I placed a relatively low bid of $300 on the Cavalier, assuming I wouldn’t win. Then the auction organizer reached out and informed me my bid was tied with another person and asked us both to submit a counteroffer. I raised mine by $100 and was thrilled to learn I had actually won the car.
I consider myself quite fortunate. Not only was the purchase price minimal, but the car turned out to be a solid find.
When I bought it, it wouldn’t start, but it only needed a new battery and fresh spark plugs. The mileage was low, and it had working air conditioning — something my Lexus had lost.
The Cavalier lasted about three years before it was destroyed in a hit-and-run crash. Had I not been rear-ended, I likely would have used it for longer. Even better, the insurance company paid me $2,400 — far more than my original outlay.
Should You Consider a Car Auction?
Car auctions don’t always produce perfect results, but Diana Gerjes, general manager at Interstate Auto Auction, says newcomers can be in good shape to make a successful purchase if they do their preparation first. She suggests checking how the vehicle operates before placing a bid.
“If they let you test-drive, definitely take advantage of that,” Gerjes advised. “That’s the first thing I tell people.”
She cautions first-timers against getting swept up in auction excitement and bidding on something they haven’t driven.
Assessing the vehicle’s value beforehand is also vital, Gerjes noted. Prospective bidders can consult resources like Kelley Blue Book or Edmunds to estimate a vehicle’s average worth so they don’t overpay.
5 Practical Tips for Buying a Car at Auction
Even though I skipped a test-drive and didn’t check Kelley Blue Book, I lucked into a real find.
Here are some suggestions from my own experience buying at an auction.
1. Know a Bit About Cars — or Bring Someone Who Does
Don’t ask me to explain the difference between a catalytic converter and a carburetor. I wouldn’t spot a failing transmission just from how the car drives.
Despite my lack of mechanical knowledge, I was fortunate my boyfriend understood cars. I also had family members I could consult if issues surfaced.
Some auctions also provide limited warranties on certain aspects of a vehicle’s condition.
2. Budget for Repairs
Typically, cars end up at auction for a reason. High mileage, engine or mechanical faults, or previous accidents may keep a car off a conventional dealership lot.
While a low bid might net an excellent price, you should factor in potential repair or cosmetic costs.
Interstate Auto Auction notes that sedans might need repairs ranging from $300 to over $1,000, while trucks, vans, SUVs and luxury models could require $600 to more than $2,000 in work.
CarMD’s 2018 Vehicle Health Index provides detailed info on which vehicle types have the fewest repair occurrences and the lowest average repair expenses. The study found the 2016 Audi Q5 had the fewest “check engine” incidents and the 2017 Hyundai Tucson had the lowest check-engine-related repair cost at $66.67.
Don’t overlook towing fees if you can’t drive the car away. Though my vehicle initially wouldn’t run, we avoided towing charges by using our other car to tow it around the block to our apartment complex.
3. Look Into the Car’s Background
It’s not always possible, but having some background on the vehicle you’re eyeing is ideal. With the VIN, you can research its history via a service like CARFAX.
I knew the newspaper delivery vehicles had to be reasonably maintained because the company serviced them regularly. If the auction had occurred right after a local flood, however, I’d be more cautious about possible water damage.
4. Consider the Vehicle’s Short-Term Lifespan
I purchased my car expecting it might not last long. Considering I would’ve otherwise spent roughly $400 on transportation over the next few months, I figured even three months of use would justify the cost.
With buys like these, assume the car won’t outlast a brand-new leased model from a certified dealer. Still, it was reassuring not to be locked into a $400 monthly lease payment for years.
5. Always Bid an Odd Number
This will probably be my top rule for any blind auction in the future.
When I learned my initial offer matched someone else’s, I regretted not bidding $301 instead of $300. That small change could have saved me $99 — or nearly $100 if fractional bids had been permitted.
Of course, putting in an odd bid wouldn’t have the same impact at a live auction, where another bidder could instantly top you.
Nicole Lane is a senior writer at Savinly.
