At a car auction, you can have a very diverse set of cars coming from many different sources. Probably the most common source of inventory for a car auction are car repos. Often, the bank or lending institution will repo a car when the owner no longer makes their payments. They can also repossess cars from a dealership if the dealership gets behind on their payments. When this happens, you can buy brand-new cars as repos and save yourself a lot of money. There are also other types of cars that can be sold at an auction. These include salvage cars and impounds. A salvage car is basically a car that has been totaled and the insurance company would rather buy out the car from its owner, rather than spend more on the car’s repair. Then the insurance company turns around and sells it as a salvage car at an auction. For people willing to spend the time and make the investment, salvage cars can be good deals, but you need to do a very good job inspecting them know exactly what you are buying is worth it.
Impounded vehicles are vehicles that have been impounded by the state, and have not been claimed by their owners. Typically these are cars that are a little bit older and they may also have a few mechanical problems associated with them. When you buy an impound, you should also make sure to inspect it thoroughly and know whether or not you’re getting a good deal. Also it is important to understand the value guides and know how much each used car is worth. This will allow you to compare the market value to the selling price at the auction, and know whether or not you are getting a good deal on your investment. Only bid on car repos for sale that are priced below the wholesale trade-in value, and cars that you know you can buy with good equity in them.