Buying From an Online Auto Auction

CoProxy Editors

Published in Buying on CopartMarch 21st 20255 min read

Buying from an online auto auction is one of the best ways to find rare vehicles or cars on discount. There’s a lot to consider though. Unlike buying in person at a dealership, there are a lot of unknowns and a lot less help. We’re here to help bridge the gap of knowledge for beginner auto auction buyers.

Online Auto Auction Companies

There are actually a lot of auto auctions available. Some are regional while others have a national reach. Different auctions also specialize in different kinds of vehicles. From used and salvage to government or dealer only auctions. The inventory can be drastically different, the typical vehicle conditions and the rules can also be unique to an auto auction. Narrowing down what’s important for you is a good first step. Are you looking for a specific vehicle, or condition, or even bidding type? These are some of the largest or most popular auto auctions in the US and a good place to start.

How Online Auto Auction Buying is Different

Online auto auctions offer an amazing selection of vehicles, often at unbeatable prices, however there are a lot of differences to consider before deciding to buy from an auction instead of a dealership.Auto auctions provide far less options for unhappy buyers. Condition reports are available but otherwise vehicles are sold as is and the risk is entirely on the buyer. So it’s very important to visit the auction if you’re nearby and only bid on vehicles you’re confident in.Bidding is stressful and not guaranteed. You can be outbid and vehicle inventory is inconsistent. If you need a vehicle urgently, a dealership is a faster choice. You don’t want to rush an auction purchase.No one is there to walk you through the process. From payment to pick up, there are often a lot of hurdles to jump through and rules to follow. Not all of which are obvious. Acceptable payment options, how long it takes to process and clear, storage fees, lot fees, extra fees, it’s a lot to consider when pricing an auto auction vehicle and the fees can grow quickly if you don’t know what you’re doing.

Things to Remember When Buying Online

Buyers should always do their research before spending thousands of dollars on a vehicle but when it comes to getting a deal from an online auto auction, you need to do much more research. This is much easier if you have experience working on vehicles and deeply understand specific makes or models. Protect yourself from a bad purchase by looking into the vehicles you want, common issues, recalls, the seller’s reputation, the auction’s reputation. Understand the pitfalls and have a plan to address them quickly. Auctions move fast so you often don’t get a lot of time during the process to do more research.Vehicle title and paperwork can take longer. Some auctions require the seller to have the title present before the vehicle can go through the auction while others don’t. More risk can be bigger savings but this can be drawn out into weeks or months when dealing with unresponsive sellers, government agencies, brokers, etc. Be aware of what you need to pick up the vehicle and understand the process for filing your paperwork with your state.

Payments for Online Auto Auctions

Make sure you go into buying from an online auto auction understanding your funds, the rules, and acceptable payment methods. Different payment methods can take different amounts of time to process as well. A wire can be received in up to 48 hours but usually quicker, while ACH payments can take 4-6 days. This doesn’t seem like a huge difference until you consider late fees and storage fees from the auto auction. That can add up quickly.Have your money ready. Auto auctions don’t give a lot of breaks and move a lot of vehicles through their yards so you need to be timely.

Pickup from the Auto Auction

One of the biggest hurdles for new online auto auction buyers is the vehicle pick up. Different auctions have different rules but usually you need to arrange a time to pick up the vehicle. This will be coordinated with the vehicle lot. You need your paperwork completed and in hand when you go. Some auctions require a professional to pick up the vehicle on a truck. These are all rules you have to follow and can add delays into your process.

Pros and Cons of Buying from an Online Auto Auction

Pros

Lower Prices: Many vehicles sell below market value, making auctions attractive to budget-conscious buyers.
Wide Selection: Access to thousands of cars, including rare and specialty vehicles.
Convenience: The ability to browse and bid from home without visiting multiple dealerships.

Cons

Limited Inspection: Buyers rely on photos and reports without a hands-on inspection.
Hidden Fees: Auction premiums, storage, and transportation costs can add up quickly.
Uncertain Vehicle History: Some cars may have undisclosed issues, requiring costly repairs.