According to the National Association of Automobile Auctions, each year more than 9 million cars are auctioned across the country. While each auto auction varies in size, vehicle options, and services, the one consistent thing is that there is a huge market for auction cars.
In April 2022, Mecum Auctions held three live events that fetched record numbers of nearly $300 million and their event in Houston reached a record of more than $34 million at auction. By April 2022, Mecum had tested 1,047 vehicles and had an 86 percent sales rate. 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 car auction in 2021, Bloomberg notes that a $1.9 million Porsche sold at a Bring a Trailer (BAT) car auction, where you’ll find the best vintage and classic cars for sale.
While those sales numbers are impressive, most auctions aren’t for high-value collectible cars. Regular online auto auctions are for the normal, everyday vehicles you see on the streets of your city. Online auto auction sites like A Better Bid auto auction run close to 300,000 of these types of vehicles annually.
Where do auction cars come from?
collectors
According to Hagerty Insider, which is a vintage car insurer, there are 31 million collector vehicles over the age of 30 bought and sold through auctions and individuals within the United States in 2020. That number is not entirely accurate due to the large number of vintage cars. that change hands every year but are uninsured or sketchy car sales.
However, while the number cannot be pinpointed, the fact that collectors bring their cars to auctions like Barrett-Jackson, Mecum, and other classic car auctions is not in dispute.
Dealers
Every week car dealers bring cars to auctions and take them home from the auction. These cars may be older vehicles with a lot of mileage that they can no longer keep on their lots, or they may be cars that are not included in their normal inventory, like an Italian sports car on a lot that usually sells estate cars or junk cars.
If the vehicle is something the dealer fears will sit on their lot for a long time, they will sell it at auction to someone who has a market for it.
Banking and Finance Companies
Repossessions end up at auto auctions because banks typically have no way to sell the vehicles themselves. They are not in the business of selling cars, so they take them up for auction.
Many times they are trying to recover part of the loss from a bad loan. These cars can be in excellent shape, which means you could get a great deal on a repossessed vehicle with low miles and little wear. This can include cars that come from farms.
insurance companies
When an insurance company totals a car, they can submit the car to the auto auction with a salvage car title. This may not mean that the vehicle is beyond repair, but it may mean that it would cost the customer more than the insurance company will give for the repairs. In that case, the insurance company will reach an agreement with the customer 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 old patrol cars or even impounded cars that were impounded.
Also read: What is the main body type of cars?
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
An online auto auction from Better Bid, a Copart broker, offers more than 300,000 used, wholesale, salvage and repairable 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 Auto Auction
Morton Auto Auction is located in Morton, Illinois and is an XLerate Group auction. They have four lanes and about 1,200 cars a week circulate. They work only with distributors, so public buyers are not allowed.
barrett jackson
Barrett Jackson holds the largest collector car auctions in the world. His auctions are televised on channels like the History Channel and often 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 a GSA Fleet Vehicle Sale, which is open to the public. They are located in Conshohocken, Pennsylvania.
Other auctions to 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: vtt.edu.vn