According to the National Association of Automobile Auctions, more than 9 million cars are auctioned annually across the country. While each auto auction varies in size, vehicle selection, and services, one thing that is consistent is that there is a huge market for auction cars.
In April 2022, Mecum Auctions held three live events that fetched record amounts of nearly $300 million, with the Houston event achieving a record of more than $34 million in a single auction. By April 2022, Mecum had completed 1,047 vehicles and had a direct sales rate of 86 percent. One of the cars sold this year was a Monkeemobile replica and the other was a Ghostbuster Ecto 1 replica. They still sold plenty of other collectible cars that didn’t stand out from the crowd. In another 2021 auto auction, Bloomberg notes that a $1.9 million Porsche sold at the Bring a Trailer (BAT) auto auction, where you’ll find the best vintage and classic cars for sale.
While these sales numbers are impressive, most auctions aren’t for expensive cars. Regular online auto auctions are for normal, everyday vehicles that you see on the streets of your city. Online auto auction sites like A Better Bid auto auction sell about 300,000 of these types of vehicles a year.
Where do auction cars come from?
collectors
According to Hagerty Insider, a vintage car insurer, in 2020 in the United States, 31 million collector vehicles over 30 years old are bought and sold through auctions and individuals. That number isn’t entirely accurate due to the large number of vintage cars that change hands each year but are either uninsured or selling rough cars.
But while the number can’t be pinpointed, it’s not disputed that collectors bring their cars to auctions like Barrett-Jackson, Mecum, and other classic cars.
representations
Every week car dealers bring cars to auctions and drive them home from the auction. These cars may be older, high-mileage vehicles that they can no longer keep on their lots, or they may be cars that are not in their normal inventory, such as Italian sports cars on a lot that typically sells estate or junk cars.
If the vehicle is something a dealer fears will sit on their lot for a long time, they will auction it off to someone who has a market for it.
Banks and financial companies
Seized vehicles end up at auto auctions because banks typically have no way to sell the vehicles themselves. They don’t sell cars, so they put their cars up for auction.
Many times they are trying to recover part of their bad credit loss. These cars may be in excellent condition, which means you could get a great deal on a low-wear, low-mileage returned vehicle. This may include cars coming from the property.
insurance companies
When an insurance company collects on a car, they can submit it to an auto auction with a salvage title. This does not necessarily mean that the vehicle cannot be repaired, but it may mean that it would cost the customer more than the insurance company will give them to repair. In this case, the insurance company will reach an agreement with the buyer and send the car up for sale.
If you are mechanically inclined, a salvage vehicle could save you a lot of money if the damage or repairs are something you can do for little money.
Governmental agencies
Police departments and other government agencies use auto auctions to move surplus vehicles and impounded cars and trucks. You may be able to find a good deal on vintage company vehicles or even repossessed cars.
Also read: What is the main body type?
In which auctions should I buy?
If you’re ready to buy a new car, here are some great auction sites to explore.
a better offer
Online Auto Auction Better Bid, a Copart broker, offers more than 300,000 used, wholesale, vintage and repair cars at 190 Copart locations nationwide. You can bid from home on cars, SUVs, motorcycles, RVs, trailers, boats, trucks, and industrial machinery. They are 100 percent online and you do not need a dealer license to bid on or purchase a vehicle from them.
Morton Car Auction
Morton Auto Auction is located in Morton, Illinois, and XLerate Group Auction. They have four lanes and about 1,200 cars a week circulate. They only work with merchants, so no public buyers are allowed.
barrett jackson
Barrett Jackson organizes the largest collector car auctions in the world. Their auctions are broadcast on television channels such as the History Channel and usually feature some of the most interesting collector cars. They have been in business for 50 years and hold auctions in various locations across the United States including Scottsdale, AZ and Palm Beach, FL. These auctions attract many celebrities and their car collections.
carriage trade
Carriage Trade Public Auto Auction sells more than 30,000 cars, trucks, boats, and RVs annually, and its auctions are held every Monday at 3:00 pm EST. Their dealer auctions are not open to the public, but once a month they do the GSA Fleet Vehicle Sale which is open to the public. They are located in Conshohocken, Pennsylvania.
Other auctions you can check out include Direct Auto, Capital, SCA, and IAAI.
Conclusion
As you can see, thousands of cars and trucks go through auto auctions every year. From vintage cars to the SUV you’ve always wanted, you can find the right vehicle for you at an auto auction.
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Source: HIS Education