Selling a Car at Auction: Full Guide and Tips

The days have long passed when the only way to get a car sold was to trade it in or stick a “For Sale” sign on the window and hope for the best. Technology has opened many doors for those of us selling cars, trucks, or SUVs. 

One approach more and more car owners are taking is to sell through auctions. There’s less hassle than dealing with individual buyers, and the auction house takes care of the administrative details and paperwork. Let’s explore what’s involved with auctioning a car; more is required than just dropping off your ride and hoping it sells.

Before jumping in to sell your car, there are some basic steps to take.

Most people will first go online to gather a rough idea of what their vehicle is worth. You can start with resources like Edmunds and KBB. But you’ll also want to explore online listing marketplaces such as CarGurus or Autotrader. 

Also, check out auction sites to note what similar cars are selling for. If your automobile is unique or if it isn’t in normal condition, you’ll want to review specialty auction platforms. For instance, Bring a Trailer focuses on classic and collector cars, while A Better Bid offers many salvage title vehicles. 

The valuations you’ll pull together may not be what your car sells for at auction, but you’ll have a rough idea of what to expect. Many auction companies will help you with pricing when the time comes.

Take note of the phrase “the right car at the right auction.” What this means is that selecting the best auction service is crucial to maximizing how much buyers will pay for your car. 

This involves choosing an auction house that matches the vehicle you’re selling. For example, trying to sell a Toyota Camry at a Mecum Auctions event (known for high-end collector cars) wouldn’t fly. You’ll want an online auction or a physical auction that focuses on mainstream vehicles instead. 

The second half of this equation involves choosing an auction to bring the right buyers to the table (another key factor for getting the most money when selling cars). An auction is no good to a seller if there are no interested bidders. So seek out an auction company with a successful history selling your type of car.

Part of the search process involves reviewing how much auctions charge for selling a car. This can include an entry fee and service charges. You’ll want to review any requirements as well. If an auction company asks for a dealer’s license, for example, it wants to sell cars from those in the automotive trade only. In this case, move on to an auction that accepts vehicles from individual owners.

Whether dealing with a physical or online auction, you’ll need to present the vehicle title to confirm the car is yours. The auction company will also review your identification as part of the process.

In most cases, the auction company will help you determine what amount to sell your car for, including a reserve (the lowest amount you’ll accept). Your research plus input from the auctioneer will determine a good price to start bidding and an estimate for a fair market value. 

It’s not guaranteed that a car will sell at an auction; this is when having a “no-sale plan” matters. It’s common for an unsuccessful bidder to contact the auctioneer about working out a purchase deal. Keeping in mind an absolute bottom-line number can speed the process along.

Online auctions combine the traditional approach of competitive bidding with the convenience of the Internet. This means that it doesn’t matter where your car and the winning bidder are. Here are the primary steps needed to auction a vehicle online.

Let’s look at the stages of the car auction process from the seller’s perspective.

Going the auction route instead of selling a car privately has pros and cons. Here’s what you need to consider if you decide to choose to sell your car through an auction.

Experienced auction sellers take specific measures to help ensure a quick sale and create a smooth experience for everyone involved.

Establishing a reserve price, the lowest amount you’ll accept for an auction sale, is an insurance policy that guarantees you’ll get at least the minimum asking price. Otherwise, the car could sell far below what you’re hoping people will pay.

Your car should be as clean as possible to convey a good impression and attract the right buyer. Not only does a tidy vehicle show well (and invite more bidders), but it signals that the car is well cared for (a significant money motivator at an auction).

When it comes to an auction (especially online), there’s no substitute for photos. Clear and well-defined images help sell the car because they remove the mystery from what you’re selling. It makes it easier for a buyer to decide and become the highest bidder. Depending on the value and condition of your car, it may be worthwhile to hire a professional photography service (one with car experience).

While you don’t have to note every minor scratch and nick, being honest about the car’s condition is the right thing to do. Also, being upfront will avoid any unpleasantness after the sale.

Set a realistic expectation for how much you hope the car sells at auction. Your research should help with the process, and don’t be afraid to postpone a sale if you decide pricing isn’t favorable. For example, auctioning a convertible in the winter in a northern state may not yield the best results or enough buyers.

With the right preparations, selling your car at an auction can make more money than trading it in or selling it privately. Take the time to research your car’s value and the best auction option for a successful sale.

The most in-demand car gets the highest price at an auction; it can be a car, truck, or SUV. Multiple bidders seeking the same vehicle will keep the auctioneer busy with the hopes of walking away with the highest bid.

Auctions offer a unique way of concentrating buyers (bidders) in a single place to help sell many cars in a short period. Often, car auction sellers want a quick sale and can’t wait for the time it would take to sell vehicles via one-on-one transactions. Auction sellers include dealers getting rid of excess inventory, governments off-loading surplus vehicles, and private individuals looking to skip the trade-in process and maximize their cars’ selling prices.

In general, auction houses are in the business of facilitating transactions between sellers and interested bidders and not buying things. However, in certain instances involving very rare and sought-after items (like artwork) that are sure to sell, an auction house may be willing to pay for something if the seller can’t wait for an auction.