What is an Auto Auction?

In 1929, the Great Depression severely shocked the United States’ stock market in the worst way possible. 9 years later, in 1938, livestock auctioneers in the American South began importing a few used cars from the North to sell with cattle and farming equipment. J.M. "Martin” Rawls held the first auction, and 10 years later, the National Auto Auction Protection Association (now the NAAA) became the voice of the industry. 70 years later, Big Valley Auto Auction entered the auto auction industry.

Since 2008, Big Valley Auto Auction has been a destination for dealers throughout the country to buy and sell vehicles of all types. However, we’re far from the only auto auction in the world. Our industry spans numerous countries throughout the globe.

In this article we’ll explain exactly what an auto auction is, the different types of auctions you’ll come across, who is eligible to attend, and if attending an auto auction is beneficial to you.

After reading this article, you’ll have the knowledge needed to understand the definition of an auto auction and the purpose they serve in the automotive industry.

What is an Auto Auction?

Auto auctions are a resource of buying and selling vehicles that are brought in by dealers or the general public. Vehicles are bought and sold through a bidding process, where sellers auction off their inventory for a specific asking price, and buyers bid to win that inventory. The highest bid wins, the seller accepts, and the deal is finalized.

However, auto auctions aren’t just a place that houses vehicles until they’re sold. Most auto auctions provide multiple services to help you make sure you get the most out of your inventory. Common services include, reconditioning, inspection, and transportation services.

Auto Auction Services

There are 3 types of services most auto auctions provide.

• Reconditioning
• Inspection
• Transportation

Reconditioning

Have you ever grabbed a plate from your dishes and noticed there was still food from last time stuck to it? The first thing you do is say “eww”, then (hopefully) you wash it, so it’s clean to eat off of. Reconditioning services do the same thing for vehicles.

Big Valley Auto Auction offers reconditioning services, such as car washes, interior cleaning, de-identification, and premium details to clean your car up for auction day.

• Car Wash: leaves your car shiny and spotless.

• Interior Cleaning: empties out all trash inside the vehicle.

• De-Identification: Removes any stickers and decals from the vehicle’s body.

• Premium Details: Provides everything mentioned above.

An auto auction like ADESA offers dent and wheel repair, which fixes damage made by hail and fender benders. Manheim Auto Auctions has a 3 tiered system of detailing services, which include Good, Better, and Best.

Inspection

If you’ve ever gone to a doctor’s office for a physical, you’ll know that they check your height, weight, breathing, blood, and other procedures. Inspection services are like a physical for a vehicle. They check the condition a vehicle is in, and report any issues it may have.

An auto auction that provides thorough inspection services is Louisiana’s 1st Choice in Hammond, Louisiana. They offer 3 different Post-Sale inspections for all green-light vehicles, except for those with more than 175,000 miles.

Louisiana's 1st Choice Post Sale Inspection Chart

Transportation

Once you win an auction, you’ll have to get that vehicle to your location. Luckily, most auto auctions offer transportation services. San Antonio Auto Auction owns and operates their own transportation vehicles to provide transportation services to buyers and sellers from their auctions. They also have a network of reliable independent carriers they work with to provide transportation to customers. With 24-hour security, San Antonio Auto Auction accommodates the variety of different schedules that transporters keep for vehicle delivery and pickup.

While most auto auctions provide reconditioning, inspection, and transportation services, not every auction offers all 3. Different auto auctions offer different services.

What Are the Different Types of Auto Auctions?

Most people think all auto auctions are the same. However, that isn’t the case. There are 2 different types of auto auctions:

• Dealer-Only
• Public

Dealer-Only

Dealer-Only auto auctions are specifically for registered auto dealers. This means that you can only buy or sell a vehicle at that auction if you’re a registered dealer. Alliance Auto Auction-Dallas is a Dealer-Only auction that is not open to the general public and only authorized dealers can buy and sell inventory. 

Public 

Unlike Dealer-Only auto auctions, public auto auctions are open to anyone. STA Auctioneers in Donna, Texas is the biggest public auction in South Texas and allows anyone to attend. However, you will need to register and create an STA account in order to buy or sell at their auctions, which take place the last Thursday and Friday of every month.

While dealer-only and public auto auctions differ in certain aspects, there is one similarity between the two: most provide the option to bid online.

Are There Online Auto Auctions?

Now that the world is more technologically advanced, many auto auctions give dealers the option to bid online. If you’re a dealer who is unable to leave the office, or if you just don’t like being around people, this is an ideal option for you. America’s Auto Auction-Austin in Buda, Texas, is a dealer-only auto auction that offers in-person and online bidding options.

There are also auto auctions that have taken it a step further and are exclusively online. Monster Auto Auctions is a Canadian-based online auto auction that allows the public to bid on vehicles throughout all auto auctions in Canada. ACV Auction is a dealer-only online used car auction that runs daily. If you have a dealer’s license, you can join ACV to buy clean title used cars or wholesale inventory, like SUVs, pickup trucks, sedans, hatchbacks, luxury cars, and more.

Should I Attend an Auto Auction?

Auto auctions have been around for decades and will only continue to expand. Dealer-Only and Public auctions are all over the world, providing multiple locations to buy and sell vehicles.

If you’re a dealer interested in attending an auto auction, you can click the button below to speak with our dealer registration specialist to get you registered with Big Valley Auto Auction.

Not ready to talk? That’s okay! First, learn more about what it’s like to buy and sell at Big Valley Auto Auction by clicking the image below: