Big Valley Auto Auction Blog

What Does A Red Light Mean at an Auto Auction?

Written by Victor H. | Dec 22, 2023 3:41:58 PM

Have you ever bought something from a garage sale? Normally, what you see is what you get and all sales are final. This is similar to buying a red light vehicle from an auto auction.

 

Although Big Valley Auto Auction doesn’t have garage sales, we’ve auctioned off vehicles of all conditions. Since 2008, we've used a light system to announce the condition of every vehicle we run.

 

In this article, you’re going to learn what a red light vehicle is, as we breakdown every feature step by step.

 

What Does a Red Light Mean?

A red light signifies that a vehicle is running “as is”. There is no guarantee that any system in the vehicle is in good working order.

 

What Makes a Vehicle Red Light?

At Big Valley Auto Auction, there are 2 factors that make a vehicle a red light:

  • All vehicles that are 10 years or older.
  • All vehicles with 150,000 miles or more.

A seller could run any vehicle they choose on a red light.

 

Do Red Light Vehicles Qualify for Arbitration?

There are 3 factors that make a vehicle eligible for arbitration:

  • Undisclosed structural damage 
  • Flood damage
  • Title issues

 

What Should I Consider Before Buying a Red Light Vehicle?

There are 4 things a dealer should do to prepare before purchasing a red light vehicle:

  • Do your homework
  • Test drive the vehicle (if allowed)
  • Check fluids
  • Listen to the engine.

 

What Services Do Red Light Vehicles Qualify For?

Red light vehicles qualify for 2 services

  • Frame check
  • Flood check

Unlike green or yellow light vehicles, red light vehicles do not qualify for Post Sale Inspections.

 

What Are Some Misconceptions Dealers Have About Red Light Vehicles?

There are 3 misconceptions dealers make when seeing a vehicle that’s running as a red light.

  • All red light vehicles are bad.
  • The seller knows there is a problem with the vehicle and doesn’t say anything. 
  • Sellers put a vehicle on a red light because they don't know anything about it.

 

Do I Know What a Red Light Vehicle Is?

The light system at an auto auction can be confusing if you’re new to auto auctions. However, using this article as a guide can help you prepare for your next visit to Big Valley Auto Auction.

 

Now that you know what a red light vehicle is, learn the complete breakdown of Big Valley Auto Auction’s light system.