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Josh Rosenberg
By Josh Rosenberg
The Car Buying Wiz
Last Updated: August 16, 2026

Public Car Auctions: Are They Worth It & How to Buy a Good Car

Can you really buy a good used car at a public auto auction for substantially less than you'd pay somewhere else? Yes, it's possible. But there's a big difference between buying a car cheaply and actually getting a good deal.

During my years in the car business, we bought and sold somewhere in the neighborhood of 2,500 vehicles through wholesale car auctions, including both dealer-only and public. I saw excellent cars sell at very attractive prices. I also saw cars I wouldn't have touched at any price.

And that's really the key to buying at an auction.

The goal isn't simply to buy a car below retail. It's to know which cars are worth bidding on, what they're really worth, what risks you're taking, and when to walk away.

You can't normally get into a dealer-only wholesale auction without the required credentials, but there are public car auctions where ordinary buyers can participate. Today, many of them also allow online bidding.

Here's what I'd want to know before buying a car at one.

Public Car Auctions at a Glance

Bottom Line: Public auctions can produce excellent buys, but the potential savings are compensation for accepting considerably more risk than you'd normally have buying from a conventional dealer.

What Kind of Cars Show Up at Public Auctions?

One misconception I've heard many times is that cars end up at auctions because they're all junk.

They're not.

Is there junk at auctions? Absolutely. But there can also be some very nice vehicles.

Vehicles can arrive at public auctions from a variety of sources, including:

During my auction-buying years, we sometimes purchased late-model repossessed vehicles with very low mileage that were in excellent condition. They hadn't been repossessed because there was something wrong with the car. Someone simply stopped making the payments.

We also occasionally encountered lightly driven government vehicles that had been regularly maintained.

But I've seen the other side too.

There are neglected vehicles, badly repaired accident cars and cars with mechanical problems that can turn an apparent bargain into a very expensive mistake.

The important lesson is not to judge a car simply because it's at an auction. Judge the individual vehicle.

Can You Really Save Money at a Public Car Auction?

Yes, and occasionally you can save a lot.

During my auction years, discounts of 30% to 50% below retail weren't particularly unusual at some public auctions. But those weren't dealer-only wholesale auctions, where professional buyers generally had considerably more information about the vehicles. Public auctions could be a very different environment.

Car being sold at a public auto auction

Information was often limited, every vehicle had to be approached with suspicion, and the lower prices reflected that additional risk. I wouldn't assume those same discounts are typical today, but the basic principle hasn't changed: the less you know about a car, the bigger the price advantage you should demand before taking the risk.

But I wouldn't approach a public auction assuming every vehicle is going to sell cheaply. That can be a costly mistake.

Auctions are competitive. If several bidders want the same car, the price can rise surprisingly quickly. Online bidding has also made many vehicles available to a much larger pool of potential buyers.

And there's another factor first-time bidders sometimes overlook:

The winning bid isn't necessarily what the car actually costs you.

Depending upon the auction, you may have to account for:

Suppose you win a car for $10,000 and congratulate yourself because similar cars are selling for $12,500.

But then you add $700 in auction and processing fees, $300 to transport it home, two tires, an overdue service and a brake job.

Suddenly that $10,000 auction car isn't nearly the bargain you thought it was.

Buyer Tip: Never compare the auction bid with a dealer's asking price. Compare your estimated total cost after fees and likely repairs with what you could realistically buy a comparable car for elsewhere.

The Biggest Risk: You Usually Know Less About the Car

There's a reason an auction vehicle may sell for less than a similar vehicle sitting on a used-car lot.

You're accepting additional risk.

Many auction vehicles are sold "as is." Depending on the auction, you may not be able to take a conventional test drive. Your inspection time may also be limited.

Some auctions provide condition reports, vehicle histories, photographs or other information. Others provide considerably less.

Don't assume that an auction's description amounts to a comprehensive mechanical inspection unless the auction specifically says it does.

And never assume that because a car starts, idles nicely and looks great in photographs that it's mechanically sound.

That's why I consider the inspection and research you do before bidding to be more important than the bidding itself.

My 10-Minute Pre-Bid Auction Inspection

We inspected literally thousands of vehicles at auctions over the years, and one rule served us extremely well:

If a car didn't pass our basic inspection convincingly, we moved on.

You don't have to be an expert mechanic to spot many warning signs. Obviously, having a qualified mechanic inspect a vehicle is preferable whenever that's permitted. But if that isn't possible, there are still plenty of things you can check yourself.

Exactly what you're allowed to inspect will vary by auction, so find out the rules beforehand.

1. Start the Engine and Listen

If you're permitted to start the vehicle, don't just confirm that the engine runs.

Listen carefully.

Watch and listen for:

Let the engine run long enough to observe it if the auction permits you to do so. Some problems aren't as noticeable during the first few seconds after startup.

2. Check How the Transmission Engages

If permitted, keep your foot firmly on the brake and move the transmission between Park, Reverse and Drive.

I would pay attention to any excessive delay before the transmission engages, hard engagement, clunking or unusual movement.

This obviously isn't a substitute for driving the car. But when test drives aren't permitted, you're trying to gather every useful clue you can.

3. Check the Fluids

If you have access under the hood, look at the engine oil and other accessible fluids.

Extremely dirty or neglected-looking fluids don't automatically mean the car is bad, but they can tell you something about how the previous owner maintained it.

Look underneath the vehicle as well. Fresh fluid underneath a car deserves your attention.

Remember that many newer vehicles don't provide an easily accessible transmission-fluid dipstick, so you may not be able to inspect the transmission fluid the way we commonly did years ago.

4. Look Very Carefully for Water or Flood Damage

This is one area where I'd be particularly cautious.

Look underneath floor mats and, where accessible, around carpeting and inside the trunk.

Watch for:

A heavily detailed interior can look beautiful while hiding what happened to the vehicle previously.

5. Look for Evidence of Accident Repairs

Walk completely around the car and look at it from several angles.

Things we routinely looked for included:

A repaired accident doesn't automatically make a car unacceptable. The question is what happened, how serious it was and whether it was repaired properly.

6. Test Everything You Can

If the auction allows it, check the:

One broken power window isn't necessarily a reason to walk away from an otherwise excellent bargain. But several electrical problems could be warning you about something much more expensive.

7. Check the Tires and Other Obvious Wear Items

Tires, brakes and normal maintenance items shouldn't necessarily scare you away from a great car.

We expected some auction vehicles to need reconditioning after we bought them.

The difference is that those expenses need to be part of your bid calculation rather than unpleasant surprises afterward.

Four tires, brakes and several overdue maintenance items can easily consume a significant portion of what you thought you saved.

8. Use an OBD-II Scanner If It's Permitted

On a modern vehicle, an inexpensive OBD-II scanner can provide additional information that wasn't readily available to ordinary buyers during much of my auction-buying career.

If the auction permits scanners, checking for stored diagnostic trouble codes can be worthwhile.

But don't treat a clean scan as proof that the car is problem-free. It's simply another piece of information to consider along with the physical inspection and vehicle history.

Check the VIN and Vehicle History Before You Bid

I strongly recommend checking the vehicle identification number before bidding on any car you're seriously considering.

Obtain a reputable vehicle-history report when one is available and review whatever title and condition information the auction provides.

Among other things, you're looking for indications of:

A vehicle-history report isn't perfect. Something can happen to a car without ever appearing in a database.

That's why I'd never substitute a history report for physically inspecting the car. Use the two together.

Buyer Tip: Do this research before the auction starts. Once bidding begins, emotion and time pressure are terrible substitutes for research.

Know What the Car Is Worth Before You Bid

This is where I saw inexperienced bidders make one of their biggest mistakes.

Some people seemed to believe that because they were standing at an auction, whatever price they paid had to be a wholesale bargain.

It doesn't work that way.

You need to know what comparable vehicles are actually worth before bidding starts.

I'd also go into the auction knowing the approximate trade-in value of every vehicle you're seriously considering. That's essentially your wholesale-price benchmark and gives you a much better idea of whether the auction price you're seeing is actually attractive.

You can get a current estimate using Edmunds Trade-In Quotes. Enter the vehicle's information and mileage before the auction so you already have the number with you when bidding begins.

Ideally, I'd want to buy well below that trade-in/wholesale value. Remember, you're taking more risk at a public auction than a dealer normally takes buying a vehicle through established wholesale channels, so merely buying at wholesale doesn't necessarily make it a great deal.

Also, research the year, model, trim, mileage and condition. Look at realistic market values and comparable vehicles for sale in your area.

Then remember that you're accepting risks you wouldn't necessarily accept with a conventional used-car purchase.

That risk deserves a discount.

Determine Your Maximum Bid Before the Auction Starts

This may be the single most important bidding rule I can give you.

Decide your maximum price before you start bidding.

Conceptually, I would approach it something like this:

Realistic value of the vehicle
minus auction fees
minus expected repairs and reconditioning
minus an additional allowance for auction risk
equals your maximum bid

Suppose you've decided that $8,500 is the most you can sensibly bid.

The bidding reaches $8,500.

Someone bids $8,600.

You're done.

Don't start telling yourself, "What's another hundred dollars?" because another bidder may be telling himself exactly the same thing.

Then it's $8,800. Then $9,000. Then $9,300.

That's how people "win" auctions and lose the deal.

Don't Fall in Love With a Particular Car

This was one of the great advantages we had as professional buyers. We weren't emotionally attached to a particular car.

If the price wasn't right, we'd let somebody else own it.

Another vehicle would come along.

Buyers discussing car auction bidding strategy

That's much harder when you've spent three weeks looking for a particular color, trim and option combination and suddenly see exactly what you want crossing the auction block.

But that's precisely when bidding discipline becomes most important.

Don't go to an auction determined to buy a car. Go determined to buy a car only if the right opportunity presents itself.

There's a huge difference.

When I'd Walk Away From an Auction Car

No single defect automatically makes every vehicle a bad purchase. Price and circumstances matter.

But I'd become very cautious about bidding when I encountered things such as:

Most importantly, I'd walk away when there were simply too many unanswered questions.

You don't need to prove that a car is bad before deciding not to buy it.

At an auction, uncertainty itself has a value. The greater the uncertainty, the less you should be willing to pay.

What If You Buy a Bad Car?

This is the part of public-auction buying that shouldn't be sugarcoated.

If you've purchased an as-is vehicle and discover an expensive problem afterward, you may have little or no recourse depending upon the auction's rules and the circumstances of the sale.

Maybe the car still makes financial sense to repair because you bought it cheaply enough.

Maybe it doesn't.

But you shouldn't bid based upon the assumption that you can simply undo the purchase if things go wrong.

This is exactly why I believe an auction buyer should demand a meaningful price advantage in exchange for taking additional risk.

If you're saving only a few hundred dollars compared with buying a similar car through a conventional sale where you can have it thoroughly inspected and test-driven, I'd question whether the auction purchase is worth the additional uncertainty.

Where Can You Find Public Car Auctions Near You?

Public car auctions aren't always as obvious or easy to find as conventional dealer-only auctions.

Some are local operations with a limited web presence. Others are large organizations offering online bidding and vehicles located around the country.

A good starting point is to search specifically for:

Before registering or paying anything, carefully read the auction's rules.

In particular, determine:

Don't wait until after you've won a vehicle to discover the rules.

Online Car Auctions Require Even More Caution

Online bidding has made public auctions considerably more accessible. You may be able to look through hundreds or thousands of vehicles without leaving home.

A Car Waiting To Be Auctioned

That's convenient, but convenience doesn't eliminate risk.

If you're buying from photographs and a condition report without personally inspecting the vehicle, you're making your decision with less information.

I'd therefore pay particularly close attention to the auction's condition disclosures, photographs, title information, vehicle history, buyer protections and fee structure.

I'd also factor transportation into the equation if the vehicle isn't nearby.

A car that looks like an extraordinary deal from several states away may become much less extraordinary after adding transportation and discovering that its condition isn't quite what you expected.

Should a First-Time Buyer Purchase a Car at Auction?

That depends upon the buyer.

If you know very little about cars, need dependable transportation immediately and can't afford an unexpected repair bill, an as-is public auction probably wouldn't be my first choice.

Get an Instant Used Car Appraisal at Edmunds.com

On the other hand, an auction may make more sense if you're comfortable evaluating used vehicles, have enough financial flexibility to handle some repairs and are disciplined enough to walk away when the numbers don't work.

It can also help tremendously to attend an auction once without buying anything.

Watch.

See how the bidding works. Learn the procedures. Watch how quickly prices move. Pay attention to what different types of vehicles actually sell for.

You'll be much better prepared when you eventually decide to bid.

Are Public Car Auctions Worth It?

They certainly can be.

I've personally seen enough excellent cars bought at auctions to know that very good opportunities exist. But I've also seen enough questionable vehicles to know that simply buying at an auction doesn't make someone a smart car buyer.

The people most likely to get good deals aren't necessarily the ones who know the most about bidding.

They're the ones who do their homework beforehand.

Know what the vehicle is worth. Inspect everything you're allowed to inspect. Check its history. Understand every auction fee. Allow for repairs. Decide what you're willing to pay.

And then stick to your number.

My Bottom Line: Don't go to a public car auction looking for a cheap car. Go looking for an unusually good value. If you don't find one, leave with your money in your pocket and try again another day.

That's how we approached auctions when I was buying cars professionally, and it's still the approach I'd recommend today.

Where to Find Public Car Auctions Near You

Finding public car auctions can sometimes be harder than buying at one.

Large online auctions are fairly easy to locate, but smaller local auctions, government sales, bank repossession auctions and other public sales can be scattered among dozens of different websites and organizations.

You can certainly find them yourself. Try searches such as:

It can take some digging, particularly if you're trying to uncover smaller local auctions rather than just the big national operations.

Some Public Auction Sites to Try

SCA Auctions has auction locations around the country and is one place to start looking for publicly available vehicles.

Salvage Reseller is another option. Despite the name, you'll find vehicles in a wide range of conditions, not simply badly damaged salvage vehicles.

You can also look at IAA, which has locations throughout the country. Just remember that bidding eligibility can vary by vehicle and location, so check the requirements before assuming you can bid on a particular car.

An Easier Way to Find Auctions

If you don't want to spend hours tracking down individual auctions yourself, Gov-Auctions.org can be a real time-saver.

It's a paid membership service that brings together listings for thousands of government, police, seized, repossessed and other auctions around the country, making it much easier to find what's available in your area.

And it isn't limited to cars. Depending on what's being auctioned, you can also find motorcycles, trucks, boats, real estate and many other types of government and seized property.

You can absolutely search for many of these auctions yourself for free. What you're paying for with Gov-Auctions is primarily the convenience of having auction information gathered in one place rather than doing all of the searching and legwork yourself.

Full disclosure: Auto Broker Magic earns a commission if you join Gov-Auctions through our link.

Before You Register or Bid

Whichever auction you use, read its rules before bidding. Don't assume that every auction—or even every vehicle at the same auction—has identical requirements.

Check:

Once you've found an auction that interests you, I'd actually recommend attending or watching one before you buy anything. Learn how it operates, watch what vehicles actually sell for and get comfortable with the process.

Then, when the right car comes along at the right price, you'll be much better prepared to recognize the opportunity.

And remember: finding an auction is easy compared with finding the right car at the right price. Be patient enough to wait for both.


Not Buying At An Auction? Avoid These Dealer Traps

Before you negotiate, learn:

How to avoid giving the dealer the upper hand on a used car

How to avoid paying more than necessary for a new car

What you don't know about dealer trade-in offers


An Insider Insight ...

How To Get The Best Price For Your Trade-In


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