In an auto auction, as in any auction, bids are accepted for a vehicle until a bidding ceiling is hit at which bidders refuse to commit to a higher price. At that point, the individual with the highest bid wins the vehicle.Continue Reading
Prior to an auto auction, prospective bidders are typically able to inspect a car and verify that it is in working order. In some instances, they may also be able to test drive it. Additionally, bidders may find out the terms under which the car is being sold. Some cars are sold under some form of warranty while others are sold as is. This information may be disclosed either before or at the time of the auction.
Once a prospective bidder finds a truck that he likes, he must register and obtain a bidding number. At the time of the auction, the truck's lot number is announced. The vehicle may also be brought onto the lot floor. An auctioneer then proposes an opening bid. If a bidder accepts, then the auctioneer continues to raise the price in specific increments until bidders stop accepting. The auctioneer then issues a fair warning after announcing several times that the item is "going." If there are no new bids after the fair warning, the automobile is considered sold to the highest bidder. The bidder then signs paperwork for the sale of the truck at the terms provided in the auction or, if some negotiations are a condition of the auction, the final contract is negotiated. The winning bidder pays for the truck and becomes the new owner.Learn more about Buying & Selling