Chapter 2:
Top 5 Questions About Auctions

Let's start by answering the top five questions people ask about government and private sector auctions.

1. Who can attend public auctions?
   Virtually all government auctions - and most private sector auctions - are open to the public. But if you want to bid, you may have to register at the time of the auction. Some government agencies (for example, the U.S. Post Office) specify that their employees, as well as relatives of their employees, are ineligible for bidding.

 
2. Do I need to register when I attend an auction?
   Some auctions have basic registration requirements. Normally, you must be 18 years of age or older. And in some cases, there may be a small registration fee, say $1-$3 or so. Other auctions don't require registration - or any fees - at all, you just show up and bid to your heart's content! At many vehicle auctions, a fully refundable deposit of $200 or so is required to actually bid. This is for the protection of both the auction agency and the bidders, as it helps ensure that only serious bidders are participating, and that non-serious bidders will not falsely drive up the bidding.

 
3. Are items always sold "as is"?
   As a rule, all government auctions - and most private sector auctions - have an "as is, where is" policy. This means you agree to accept the item in its present condition and remove it from the premises on the day of the sale. However, detailed inspections of auction items are permitted and encouraged...including the ability to bring your own mechanic (or a knowledgeable friend) along to inspect vehicles before bidding.

 
4. If I buy a car or truck, can I drive it home?
   Normally, yes...to drive away in your new vehicle, you must make the full payment. Title will ordinarily be transferred to you once you've paid in full. Of course, if the vehicle is not in running condition, you must make arrangements to have it towed. You will often be able to start-up vehicles during the inspection period, but you probably won't be able to drive them until after the sale.

 
5. What forms of payment are accepted?
   Cash only or cash-equivalents, like cashier's checks and money orders, are the preferred forms of payment at most auctions. For cash-equivalents, it's a good idea to bring several checks for small amounts rather than one large check, since you don't know in advance the cost of your purchases. Some auctions will accept traveler's checks. If the auction is run by a private company, they normally take credit cards, like Visa and MasterCard. Personal checks and business checks are not usually accepted, unless you have a letter of guarantee from your bank.