Auctions are where many used and damaged cars change hands, from retired police cruisers to insurance total losses. Buying there can save money, but you give up much of the protection you get at a dealership. There are no test drives at most online salvage auctions, no warranty, and no returns. This guide explains the main types of auctions, who can bid, how titles work, and how to estimate the true cost before you place a bid.
Types of car auctions
- Government and fleet auctions. Agencies sell retired vehicles through sites like GovDeals, GSA Auctions and Purple Wave. These are often maintained fleet vehicles with high hours or miles. Most are open to the public.
- Public auto auctions. Local auction houses sell trade-ins, repossessions and consignment cars. Many post online through Proxibid or their own sites.
- Salvage auctions. Copart and IAA sell insurance total losses, theft recoveries and donated cars. Some lots are restricted to licensed dealers.
- Enthusiast auctions. Bring a Trailer and Cars & Bids focus on collector and enthusiast cars, with detailed photos and seller Q&A.
- General marketplaces. eBay Motors hosts both auctions and fixed-price listings from dealers and private sellers.
Who can bid?
Government, public and enthusiast auctions are generally open to anyone who registers. Salvage auctions are more complicated. Whether you can bid on a given lot depends on the vehicle's title type and the laws of the state where it is sold. If a lot requires a dealer license you do not have, registered brokers such as AutoBidMaster and SalvageReseller can bid on your behalf. They charge membership and broker fees on top of the auction's own fees, so compare costs.
Understand the title
The title type is one of the most important facts in a listing:
- Clean title. No major brand on the title. It still does not guarantee good condition.
- Salvage title. Usually issued after an insurer declares a total loss. The car generally cannot be registered for road use until it is repaired and passes the state's process for a rebuilt title.
- Rebuilt or reconstructed. Previously salvage, repaired and approved for road use. Resale value and insurance options are often lower than a clean-title equivalent.
- Certificate of destruction, parts only, or junk. Usually cannot be titled for road use again. These are for parts.
- Bill of sale only. Can be difficult or impossible to title depending on the state. Be cautious.
In South Carolina, titling goes through the SCDMV. Rebuilding a salvage vehicle typically involves documentation of repairs and parts and an inspection before a new title is issued. Check the current SCDMV requirements before you buy, because the rules and forms change.
Research the vehicle
- Run the VIN. Get a vehicle history report and check the free NHTSA recall lookup. The NICB's free VINCheck can flag reported theft or total-loss records.
- Study every photo. Look for airbag deployment, flood lines, mismatched panels, frame damage and missing keys.
- Read the condition codes. "Run and drive" at a salvage auction usually means it started and moved at check-in, not that it is roadworthy.
- Price the repair. Get parts prices and, if possible, a rough estimate from a mechanic or body shop. Hidden damage is common.
- Inspect in person if the yard allows it, or pay an inspection service.
Add up the true cost
A car's "winning bid" is rarely what you pay. Include:
- Auction buyer fees, which may be tiered by price
- Broker or membership fees if you use one
- Internet bidding, gate and documentation fees
- Storage fees if you do not pick up quickly
- Towing or transport; for long distances, a carrier like Montway (see the Reseller Toolkit)
- Parts, labor and inspection
- Sales tax or SC's infrastructure maintenance fee, title and registration
- Insurance
Pick up and next steps
Pay by the auction's deadline and move the vehicle quickly, since storage fees can start within days. Many salvage cars must be towed. Do not drive an unregistered or salvage-titled vehicle on public roads.
If you're selling instead
If you end up with a car that does not make sense to fix, instant-offer services like Peddle, CarBrain and Wheelzy buy damaged vehicles. Parting a car out on eBay Motors can bring more money but takes far more time. See the Sell a Vehicle Fast section of the directory.
This guide is general information, not legal advice. Title and licensing rules vary by state and change over time.
Frequently asked questions
- Can the public buy at Copart or IAA?
- Some lots are open to the public, but many require a dealer or business license depending on state rules and the vehicle. Registered brokers let the public bid on many restricted lots for a fee.
- What is a salvage title?
- A salvage title usually means an insurer declared the vehicle a total loss. Rules vary by state. To drive it legally again, the car generally must be repaired and pass the state's inspection to receive a rebuilt or similar title.
- Should I get a vehicle history report?
- Yes. A VIN-based history report and a check for open recalls are inexpensive compared with the cost of a bad purchase.