by Sarah E. Sanuth

Created on: March 04, 2008   Last Updated: November 07, 2008

When we are in the market to purchase a used vehicles, most people think used car dealership. But what happens when that used car dealer wants to put a price tag on a vehicle that no one wants to pay? He doesn't sell it. That is where the auction comes into play.

Used car auctions are more often than not, for used car dealers. It's where used car dealers bring their over-aged or unwanted vehicles to sell, and where they purchase more inventory for their lot to sell. How else do you think they make all that money off that one vehicle? Because they purchased it at a nominal price and sell it for retail.

Approximately 90 percent of all car auctions out there are for dealers only. So unless you are a dealer, or know someone who is, you can't get in. You can't even look to see what is in there for sale.

There are some auctions out there that are open to the public. The biggest difference between these types of auctions is the quality of vehicle that is being auctioned off.

Typically at an auction that is open to dealers only, the types of vehicles range greatly in price, age and quality. You will have some vehicles that are newer and some that are a little older, some that will cost thousands and some that will only cost hundreds. Quality will range from vehicles that will need no work to some that will need minor work or work that will not take much to get that car up to 100 percent.

Auctions that are open to the public on the other hand have an "anything goes" policy. And it means just that. Public auctions will carry vehicles that may only get you around for a week or vehicles that will need thousands just to get it in running condition.

Keep in mind that there are auctions out there that will only deal with vehicles that have been heavily damaged in accidents. These auctions are called impact auctions. These should only be used if the buyer is mechanically inclined and has a passion for body repair.

No matter what type of auction that you decide to attend to purchase that used vehicle, there are certain steps that should always be followed before and during the auction process.

1. Assess your financial situation Don't walk into the auction without having any idea of what it is that you can afford to spend. Keep in mind that the vehicle will need to have at least some repairs done to it to conform to your state safety guidelines, whether it be brakes or a windshield.

2. Arrive early Make sure that you are there well before the bidding process begins. Once that vehicle

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