Are car auctions open to the public legit? (vehicles, red light, auto)
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I was looking in Craigslist for a used car and saw a few ads from used car dealers, specifically, auto dealers who get their cars from auto auctions or auction dealers themselves that are open to the public. They seem to be selling decent used cars at low prices, but when I google map their addresses, I see a few buildings according to their addresses, but the buildings are unmarked or have a sign that doesn't show they're a car dealership, yet a bunch of cars are parked around their lot without license plates, as well as many stored inside a "warehouse" setting. Are these legit businesses or chop shops trying to recycle junk cars out? The cars look decent and the lower than market pricing make them attractive but I'm a little leery with the setting despite some of the having websites to show their inventory. And shouldn't dealers have titles of the vehicles in their names or the previous owner? I'm not sure how they do paperwork in those settings compared to the fancy dealerships where they have a business office to do all the paperwork. Has anyone had experience with buying a car direct from an auction warehouse? How did it go?
In my experience, most of the cars at these types of places are cheap because they have accident history, flood history, branded titles, etc. history. They are the cars that more reputable ("fancy" in your words) dealers don't want on their lots. If the reputable dealers are buying cars at an auction for their lots, they are usually going to places like Manheim.
It might depend on your state. Here in Maryland auto auctions are open to the public. I know a couple guys who buy cars at them. One has had pretty good luck, the other not so much.
You have to know what you're doing and what you're looking at as well as having either the personal abilities to work on them or a wallet large enough for someone else to.
As mentioned, you might get flood cars, or repos, or recovered stolen cars or one seized by law enforcement (although those are usually auctioned by the police agency rather than a general auction place).
I've been to those public auctions many times, most of the cars have very high miles and mechanical problems, some are terribly filthy inside. It's pretty much the cars that dealers reject.
Thanks for the responses. I'm not as concerned about the cosmetic and cleanliness of the vehicles, that could be fixed, just mainly any major hidden mechanical issues and if the paperwork is legit, like the title, etc. because if the car is a repo or stolen, I don't want any problems after paying for the vehicle. In a google search, someone mentioned hidden fees or buyer's premium for public buyers (non-auctioneers)? But I saw one that's selling vehicles with just a little over 100,000 miles (that's relatively low these days), for less than market rate. I know dealers get these cars from auctions really cheap, just hard to believe they'd be selling vehicles with just a slightly higher markup.
Look, simply stay away from them.
You always get what you paid for.
Period.
They sell them cheap-er because they got them cheap.
Cheap is never good. Never. It's common sense.
Tame the greed and get reasonable deal from a private party. Or, it will cost you arm and leg later in repairs.
Do this. Find a local dealer who will buy a car for you at closed auction. Plenty of them charge like a nominal fee, around $200, for service like this. Give man your budget and requirements. He WILL know what to do and what to look at. You - not so much. That is the safest way to do auctions. Also, it takes LONG time to find a gem, as auctions are well established feeding grounds for thousands of folks that flip cars.
I was looking in Craigslist for a used car and saw a few ads from used car dealers, specifically, auto dealers who get their cars from auto auctions or auction dealers themselves that are open to the public. They seem to be selling decent used cars at low prices, but when I google map their addresses, I see a few buildings according to their addresses, but the buildings are unmarked or have a sign that doesn't show they're a car dealership, yet a bunch of cars are parked around their lot without license plates, as well as many stored inside a "warehouse" setting. Are these legit businesses or chop shops trying to recycle junk cars out? The cars look decent and the lower than market pricing make them attractive but I'm a little leery with the setting despite some of the having websites to show their inventory. And shouldn't dealers have titles of the vehicles in their names or the previous owner? I'm not sure how they do paperwork in those settings compared to the fancy dealerships where they have a business office to do all the paperwork. Has anyone had experience with buying a car direct from an auction warehouse? How did it go?
If you have to ask how it works to buy a car from an auction you should not risk it.
The one I used to go to had a traffic light hanging over the auction floor....
Red light = Anything under $1k, buyer beware, AS-IS
Yellow light = Seller discloses known mechanical problems, listen carefully before bidding.
Green light = No known major problems, you must take any problems to the arbitrator within 24 hours.
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