We will take a look at the two types of auctions available today; local auctions and online auctions. We'll discuss how they are setup and run and how best to use them to buy or sell a used car to save you time and money.

Local vehicle auctions

You must first register if you'd like to buy or sell at a local auction. If you plan on participating as a buyer, you may have to place a small down payment at the time you register for the auction. This will be used if you are the high bidder but returned to you if you don't end up buying anything. Once you register, you should receive a paper explaining all the rules and procedures. You'll find the auction staff very friendly and helpful and will be happy to help you or, explain any of the rules or procedures in more detail. They can also help you with "how to bid" type questions. If you plan on bidding on a car, make sure you inspect it very closely prior to the auction taking place. Also set some predetermined spending limits before the auction begins. You don't want to get into an emotional "bidding frenzy" once the auction starts. be sure and clearly signal you bids.

If you plan on selling a vehicle, you'll normally be given a unique identifier number when the car is registered. If the auction is a lot, you'll normally be told where the car is located. When registering your vehicle, it's important to be very accurate as to the condition the vehicle is in, the mileage and whether you have a clear and clean title to the car.

If you're lucky enough to be the high bidder on an auction, you will next want to inspect the car, again, very closely to make sure it's in the as-advertised condition. The auction staffers will assist you in how to go about paying and, will also guarantee clean title. Though you do not usually have to produce immediate funds to pay for your newly won car, it's always a good idea to get pre-approved financing BEFORE bidding on a vehicle. THe auction house will normally give you a few days to pay and take final delivery.

You should also be given a copy of the invoice or sales receipt so you can drive the vehicle home (don't forget about plates) or, have the car shipped. Ask the auction staff about shipping companies, they can normally assist you in finding a good, reliable one for the best price.

Online vehicle auctions

Online auctions, like eBay for instance, are not much different than local auction. About the only differences are you cannot inspect the car, in person, prior to bidding on it, unless you live close enough to the seller. And, you will not be standing next to your competitors... they'll be located somewhere else in the world. Most reputable online sellers will make a full disclosure of the condition of the vehicle and provide many pictures, detailing all the areas of the vehicle and, trouble spots. If you are using a service such as eBay, make sure you check out the sellers feedback as well. Feedback is a rating (Positive, Neutral, or Negative) and short comment left by each previous buyer.

Since online auctions can be held just about anywhere, you may have more likelihood of having the car shipped to you. There are several reputable shipping companies that can be found on the web or, ask the online auction company for some referrals. Careful though, you want to make sure the auction company is recommending someone because they are good, not because they are paying a large percentage "finders fee" back to the auction house. The shipping company will most likely have a website that you can checkout and verify their prices.

Purchasing vehicles at either online or local auctions is probably your best bet as far as finding the lowest price. Sure there is some work involved but in the process, you'll save thousands of dollars as compared to a dealer or even a "private party" newspaper ad. I think you'll find the small bit of effort worth it in the long run.