The Truth About Public Car Auctions

Understanding Public Car Auctions

Public car auctions are events where vehicles are sold to the highest bidder. These auctions can be a great way to purchase a car at a lower price, but they are not as straightforward as some websites might lead you to believe.

The Hype vs. Reality

Many websites claim that you can buy cars for as little as $100 or pay just 10% of the retail price. While these deals are theoretically possible, they are extremely rare. According to a study by the National Auto Auction Association (NAAA), the average price of a vehicle at a public auction in 2022 was around $9,000. This is far from the $100 deals often advertised.

The Frequency of Auctions

Public car auctions are not as frequent as you might think. Some are held quarterly, others monthly, and a few weekly. This means you may need to be patient and wait for the right auction to come along. According to the NAAA, there are approximately 9 million vehicles sold at auctions annually, but not all of these are open to the public.

Pricing Expectations

While you can get good deals at public car auctions, expecting to buy a late-model car for a few hundred dollars is unrealistic. More commonly, you might find a $20,000 car for $10,000 to $14,000 or a $15,000 car for $7,000 to $9,000. These prices are still below trade-in values, but not as low as the hype suggests.

Geographic Considerations

Many public car auctions are held at physical locations, which means you may need to travel to attend. Online bidding is not always available, so be prepared for the possibility of a road trip.

Pros and Cons of Public Car Auctions

Pros

1. Potential for Savings: You can find vehicles below market value.
2. Variety: A wide range of vehicles are available, from luxury cars to budget options.
3. Transparency: Auctions are open to the public, so you can see the bidding process.

Cons

1. Time-Consuming: Finding the right auction and vehicle can take time.
2. Travel: You may need to travel to attend the auction.
3. Competition: You will be bidding against other buyers, including dealers.

Tips for Success

1. Do Your Research: Know the market value of the car you are interested in.
2. Set a Budget: Decide how much you are willing to spend and stick to it.
3. Inspect the Vehicle: If possible, inspect the car before bidding.
4. Be Patient: Good deals take time to find.

Interesting Stats

• According to the NAAA, approximately 9 million vehicles are sold at auctions annually.
• The average price of a vehicle at a public auction in 2022 was around $9,000.
• Only about 30% of vehicles sold at auctions are purchased by the general public; the rest are bought by dealers.

Conclusion

Public car auctions can be a great way to save money on a vehicle, but they require time, research, and realistic expectations. While the hype suggests you can get a car for next to nothing, the reality is that good deals are out there, but they are not as common as advertised. By understanding the process and setting realistic goals, you can make the most of public car auctions.

For more information on car auctions, you can visit the National Auto Auction Association or check out Edmunds for car pricing and reviews.