Chapter 5:
Buying Vehicles at Auction

Vehicles are some of the most popular items purchased at auction. Auctioned vehicles range from luxury cars (seized from drug dealers, drunken drivers, and other criminals) - to government fleet vehicles that have reached their limit for public use - to corporate liquidations (such as rental car companies) - to abandoned vehicles - to private party sales.

Regardless of how a vehicle gets to auction, there are several important guidelines to follow before you bid:

Become familiar with what the vehicles are worth. Call Bargain.com, or visit the Help Area of our web site to learn the wholesale and retail value of any car that interests you. You may also wish to purchase a Kelley Blue Book or NADA Official Used Car Guide to take with you to vehicle auctions. This information will help protect you against over-bidding. A good rule of thumb for identifying an excellent deal is to get the vehicle for slightly above the wholesale price.

Bring along a friend - or mechanic - who has knowledge about motor vehicles. If you're not an expert in determining the value of vehicles, bring a knowledgeable friend or mechanic with you to the auction. There are seldom any guarantees or warranties at auction. All vehicles are sold in "as is, where is" condition, so what you see (or don't see) is what you get! Start the engine and let it run! Loud clicking or knocking noises mean trouble, as does excessive blue, black or white smoke coming out the tail pipe. Check the oil light and temperature gauge while the car is running. Protect yourself by performing the most thorough possible inspection of any vehicle you wish to bid on.

Use the Auto Inspection Checklist. We suggest you print out the Auto Inspection Checklist and save it to make photocopies in the future. That way, any time you wish to inspect vehicles at auction - you will be ready to go!

Choose your auctions carefully. City Police auctions often have low prices, but the vehicles they sell can be high risk. U.S. Marshals and Customs auctions often have fancy sports cars and luxury cars. GSA, State Surplus and the DRMO offices often sell dependable used cars and trucks. The Postal Service sells utility vehicles as well as undeliverable packages (e.g., cd's, comforters, frames, etc.) The IRS sells all kinds of vehicles to satisfy delinquent tax debts.

Call Fleet Supervisors, when possible, if buying a government vehicle. If you plan to buy a used government vehicle, call the agency's Fleet Supervisor before auction day to see if you can review the service file that is kept for each vehicle. Some agencies, like the U.S. Postal Service, actually have these service files on site during the auction. Other agencies, like the GSA, often contract their auctions out to a private auction house, which won't have the service files on site. In any case, for any used government vehicle, there is a service record kept, and it doesn't hurt to ask if you can look at it.

For a sealed bid auction, don't forget to sign your bid form. Forgetting to sign the form is the most common mistake people make, and it disqualifies your bid!