What is an Auto Auction?
Your basic auto auction will typically break down into three groups. You have Dealer Auctions, Public Auctions and Government Auctions. Each auto auction group appeals to a different demographic and has a different main source for their vehicles. Most Government auctions will be sourced from primarily de-commissioned government vehicles. The Dealer Auctions are sourced from retail trade-ins (leases), and returning sales/rental fleet vehicles as well as some bank repossessions.

The insurance auctions typically fall in the Dealer category because they don’t allow the public to attend. Some auto auctions in the United States are used by banks, the IRS, and other government agencies to sell vehicles that were repossessed for failure to make monthly payments or pay taxes, or were seized by the law enforcement agencies. You will find most of these cars wind up in insurance auctions and government auto auctions.

The Public auctions are a collection of cast offs from the Dealer auctions, abandoned vehicles, seized vehicles, etc. You can get good deals and bad deals in either group of course. The idea is if you are looking for a personal vehicle or one for your small business then you may look in the public auction and you can find something good. If you are looking to start and run your auto business (used car dealer), then you need a more stable source of vehicles, so at that point you are trying to get in to the dealer auction that have a higher base quality. The larger auto auctions (dealer) are linked together nationally (mahiem, adesa, carmax, etc) and this allows you to do a search for vehicles nationwide. You can not do this with most public auctions.

What is a Public Auto?
Buyer beware at the public auto auctions! If you are not a mechanic, then don’t do it to yourself. The mechanics will always come in and get the pick of the best and leave you (the public) with the leftovers. Some public auctions allow you to bring a mechanic. If yoy can bring a mechanic, then use the public auctions. Go on Craigslist and look in the ‘Automotive Service” category and you will find a suitable mobile mechanic that will go with you to the public auction for a fee ($125-$200). Many of the cars you find there are the older cars with the higher miles on the odometer. Try to stick to the more reputable public auction companies…screen them out by using Yelp or similar review service.

What is a Dealer Auto Auction ?
Car Dealer Auctions, are used car auctions that have traditionally been available only to dealers. In the United States, dealer auto auctions and their affiliates are relatively closed- in network of which the public is only vaguely aware of. These wholesale marketplaces cater to licensed used car dealers and is where vehicles typically are sold at or near their “real” wholesale value. Dealer auctions are regional and national, but most allow any licensed dealer (from any state) to register their dealership and their agents. Auction Access is the national entity the links these dealer auctions together. So if you are a dealer agent (dealer rep), the you could go to a dealer auction and buy a car as the dealership. We run this kind of Dealer rep Program.

What is a government auction?
The government auctions are scattered far and wide. There are so many levels of government (local, city, state, federal) and there is not one master entity that links them all together. You ae going to have to do a Google search to find your local government auction. Here you will find a lot of scam too, website trying to sell you access to government vehicles. My suggestion is get in touch with your local city hall where you live and ask them for the schedule for the city auto auction. Even the smaller townships in the smaller cities have this. Once you plug into the official city auto auctions, you will be able to network and find other larger official government auctions including your local law enforcement auctions.

Color system at auto auctions
Most auctions use a 3 or 4 light system to help you quickly understand the quality of the vehicle.

GREEN LIGHT: Means the Motor & Transmission is in good working order & will not need to be completely replaced. Green Light does not mean a car will pass inspection. Green light cars do not mean a car will not have a check engine light air bag light or any lights on. Green light simply means the car in question is certified to be in sound physical, mechanically.

YELLOW LIGHT: Vehicle will mostly likely require some minor cosmetic or mechanical work or both.

RED LIGHT: Vehicle is being sold as-is. No warranty or guarantee on the vehicle. No refunds will be issued for any defects. Could require substantial mechanical or cosmetic work (but not necessarily considered salvage).

BLUE LIGHT: Vehicle Title is not present and will be brought to Auction by the time announced by the auctioneer.

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