We don't support this browser version anymore. Using an updated version will help protect your accounts and provide a better experience.
We don't support this browser version anymore. Using an updated version will help protect your accounts and provide a better experience.
It appears your web browser is not using JavaScript. Without it, some pages won't work properly. Please adjust the settings in your browser to make sure JavaScript is turned on.
You've likely seen car auctions in movies and TV shows, and maybe you’ve caught a few minutes of a famous real-world auction that centers around classic cars. One might assume a car auction is only for rare and expensive collector’s items, but there are all kinds of car auctions out there, many of which are accessible to the everyday car buyer.
The world of car auctions is virtually as wide and varied as the world of cars themselves, but all auctions can be broadly categorized in two ways:
Within these two broad categories are different auction variations:
A dealer auction is a type of private auction where car dealerships and other industry insiders acquire vehicles for their lots. These are typically closed, but if you have friends or family in the industry, there’s a chance they might be able to get you in or act as your proxy bidder.
Since they’re generally destined for resale, cars sold at dealer auctions may already be in decent working order. Another plus: Prices can be competitive when compared to the retail market.
Government auctions are public auctions for the sale of cars previously owned and used by government agencies. This could be anything from cars used by your local parks department to cars used or confiscated by federal law enforcement.
Government vehicles may be maintained regularly and sold at competitive rates. That's in part because the purpose of these auctions is to clear inventory, not maximize the sales price. These vehicles may, however, have extensive mileage on them and could just be in “working” shape. Cars that were confiscated by law enforcement may be more of a roll of the dice in terms of condition.
Repossession auctions are public auctions that sell cars which have been repossessed. Often, the repossession is due to missed car payments. These auctions may also sell vehicles that have been abandoned by the owner. Prices at repossession auctions may be low, but there are no guarantees as to the vehicle’s condition.
Salvage auctions are public auctions intended for the sale of salvage titles — cars that an insurance company has deemed a loss to repair. This could be due to anything from a flood to a fire to a serious accident.
Salvage titles are often sold for a fraction of the cost of undamaged cars, largely because they carry greater risk, and they typically require extensive repairs and inspections before they can be on the road again.
Buying a car at auction requires just a little bit of know-how and boils down to the car going to the highest bidder. That said, there are a few other details worth knowing about.
For online vehicle auctions, whether private or public, cars will usually be listed in advance to give prospective bidders time to look over the details. For in-person auctions, the viewing window for interested buyers to inspect the car may be limited to just a few short hours.
If you’re a buyer, you may need to pay an entry fee and register to be a bidder. This may involve putting a hold on your credit card to ensure you’re committed to whatever you bid on. Bids can be placed in various ways: by raising your hand or bidder number, via an online portal or over the phone using a proxy bidder.
If your bid ends up winning, you’re generally obligated to follow through with the purchase at the winning price. Failure to do so may result in penalties or legal action. In most cases, you’ll also need to arrange transport for the vehicle.
Everything in life has its pros and cons, and it’s no different with car auctions. Let’s take a quick look at some of them:
The world of car auctions is diverse and fascinating, while participating in a car auction can be its own thrill. Afterall, you could find a great deal on your next daily driver or scoop up that rare classic you’ve always wanted.
This article is for educational purposes only and provides general auto information. The material is not intended to provide legal, tax, or financial advice or to indicate the availability or suitability of any JPMorgan Chase Bank, N.A. product or service. Outlooks and past performance are not guarantees of future results. Chase is not responsible for, and does not provide or endorse third party products, services or other content. For specific advice about your circumstances, you may wish to consult a qualified professional.
Choose the checking account that works best for you. See our Chase Total Checking® offer for new customers. Make purchases with your debit card, and bank from almost anywhere by phone, tablet or computer and 16,000 ATMs and more than 4,700 branches.
It’s never too early to begin saving. Open a savings account or open a Certificate of Deposit (see interest rates) and start saving your money.
Choose from our Chase credit cards to help you buy what you need. Many offer rewards that can be redeemed for cash back, or for rewards at companies like Disney, Marriott, Hyatt, United or Southwest Airlines. We can help you find the credit card that matches your lifestyle. Plus, get your free credit score!
Get a mortgage or refinance your home with Chase. See today's mortgage rates, figure out what you can afford with our mortgage calculator before applying for a mortgage.
You might be able to use a portion of your home's value to spruce it up or pay other bills with a Home Equity Line of Credit. To find out if you may be eligible for a HELOC, use our HELOC calculator and other resources before you apply.
Chase Auto is here to help you get the right car. Apply for auto financing on a new or used car with Chase. Use the payment calculator to estimate monthly payments.
“Chase,” “JPMorgan,” “JPMorgan Chase,” the JPMorgan Chase logo and the Octagon Symbol are trademarks of JPMorgan Chase Bank, N.A. JPMorgan Chase Bank, N.A. is a wholly-owned subsidiary of JPMorgan Chase & Co.
Investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
J.P. Morgan Wealth Management is a business of JPMorgan Chase & Co., which offers investment products and services through J.P. Morgan Securities LLC (JPMS), a registered broker-dealer and investment advisor, member FINRA and SIPC. Annuities are made available through Chase Insurance Agency, Inc. (CIA), a licensed insurance agency, doing business as Chase Insurance Agency Services, Inc. in Florida. Certain custody and other services are provided by JPMorgan Chase Bank, N.A. (JPMCB). JPMS, CIA and JPMCB are affiliated companies under the common control of JPMorgan Chase & Co. Products not available in all states.
"Chase Private Client" is the brand name for a banking and investment product and service offering, requiring a Chase Private Client Checking account.
Chase's website and/or mobile terms, privacy and security policies don't apply to the site or app you're about to visit. Please review its terms, privacy and security policies to see how they apply to you. Chase isn’t responsible for (and doesn't provide) any products, services or content at this third-party site or app, except for products and services that explicitly carry the Chase name.