Auto Auctions? Worth it or not?

[2002XLT 5,000+ posts]

Just curious if any of you guys go to auto auctions and pick up cars? Also, anybody know someone who buys and sells cars from the auctions? Ive heard there is a lot of money to be made, and ive also heard people that lose their *** doing it. So whats the deal?

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[alpinetypeR 10+ year member]

gota spend $ to make $

 

[2002XLT 5,000+ posts]

Yes i realize that. Thanks though.

 

[jco1385 5,000+ posts]

sometimes i go to police auctions. you can get a good deal on a car there if you know what is junk and what isnt

 

[Pootie 10+ year member]

The dealer I just bought my car from started his buisness that way and he seems well off

 

[dragnix 5,000+ posts]

just make sure u do ur research, u don't wanna end up with a bunk car that looks good on the outside. Kinda like buying Audiobahn

 

[Jameseypoo 5,000+ posts]

A majority of cars on the auction block have huge problems that may not be visible upon inspection.... which is why they are in an auction in the first place.

 

[NJTStang11 10+ year member]

Well I don't really know what your trying to do here. You can't just go to an auto auction and buy 6 cars and then fix em a bit and resell them. Sure it'll work at first, but eventually you will need to file for a dealer's liscence.

I used to work at an auto auction in high school and there are two different auctions. First are open auctions with donated cars (mostly rich people donating their beater in for tax deductions). Second are dealer auctions, dealer cars with minimum reserve to be sold to other with dealer liscence (cars they just want to get rid of).

If I were you, try it out and just simply do one car at a time for side money. I hope you're very good with cars, as they tend to "rig" the cars to run better through the lanes then they actually will. If you can pick out 90% of a car's issues from a simple test drive and 10 minute look-over, you'll be fine. Bring it home, get parts from junkyard. Fix the parts, detail the car, and put it up on craigslist. Could make around a grand profit a car if you do it right. Don't expect alot of newer cars though. Most things you find will be late 80's-mid 90's.

 

[phantom240 5,000+ posts]

Police auctions tend to be a bit overpriced in my experiences. Find some place like Volunteers Of America, where the cars have been donated, and hit up their auctions. I've had 2 cars that I personally drove that I bought from them, plus 2 others that had simple problems and I made killer profit off of.

And no, not all the cars that get donated are trashy. I came across a 98 Volvo a lawyer donated a while back. It was almost mint.

 

[jco1385 5,000+ posts]

well the police auctions ive gone too dont start with crazy prices. it's usually good/reasonable prices. these are just impounded cars that were never claimed. some are nice, some are decent, but 80% are trash

 

[pilyin 10+ year member]

Sometimes you get lucky at auctions, however sometimes you get something with a lot of non-stated problem. One of my friends got a jeep that ended up having to get the whole front axle and hardware replaced (couldn't see it from the outside). A couple have had unstated water damage and have just been money hogs. I've gotten somethings from auto (insurance) auctions and fixed them up, or had them fixed up, and they were good deals. I also know a lot of people who buy from auctions to sell. They don't typically do real well (and they are car people). They make a bit, but not many make much. It's not easy work. If your looking for yourself, you can get lucky but a lot of times after getting the car fixed and everything, it comes out to the same as you could have gotten on Craigslist if you wait for what you want, and not spend the time fixing it.

 

[2002XLT 5,000+ posts]

sometimes i go to police auctions. you can get a good deal on a car there if you know what is junk and what isnt

Ya im fairly good at spotting a decent deal. I wont buy it if i couldnt make money off it just parting it out. So regardless if something is unfixable, atleast ill still make money.

The dealer I just bought my car from started his buisness that way and he seems well off

Good news.

just make sure u do ur research, u don't wanna end up with a bunk car that looks good on the outside. Kinda like buying Audiobahn

I always do my research, only way to do business.

A majority of cars on the auction block have huge problems that may not be visible upon inspection.... which is why they are in an auction in the first place.

True.

Well I don't really know what your trying to do here. You can't just go to an auto auction and buy 6 cars and then fix em a bit and resell them. Sure it'll work at first, but eventually you will need to file for a dealer's liscence.
I used to work at an auto auction in high school and there are two different auctions. First are open auctions with donated cars (mostly rich people donating their beater in for tax deductions). Second are dealer auctions, dealer cars with minimum reserve to be sold to other with dealer liscence (cars they just want to get rid of).

If I were you, try it out and just simply do one car at a time for side money. I hope you're very good with cars, as they tend to "rig" the cars to run better through the lanes then they actually will. If you can pick out 90% of a car's issues from a simple test drive and 10 minute look-over, you'll be fine. Bring it home, get parts from junkyard. Fix the parts, detail the car, and put it up on craigslist. Could make around a grand profit a car if you do it right. Don't expect alot of newer cars though. Most things you find will be late 80's-mid 90's.

Thanks alot. This is pretty much exactly what im trying to do. Just start out by doing one or 2 cars at a time, then possibly work up to a dealer license. When i get my income tax return, i really want to put that money to use. So im thinking that if i buy a car, and fix it, or part it out and try and make some money back. If things go well, there is a empty lot right next to my home (3/4 acre) which the guy has been trying to sell. Tough year so i could get it for fairly cheap. At that point i could throw some cars out there and possibly do some consignments as well. And id be happy if i coudl just pay for the property through the profits of doing this. Anything extra from that would just be a bonus.

Police auctions tend to be a bit overpriced in my experiences. Find some place like Volunteers Of America, where the cars have been donated, and hit up their auctions. I've had 2 cars that I personally drove that I bought from them, plus 2 others that had simple problems and I made killer profit off of.

And no, not all the cars that get donated are trashy. I came across a 98 Volvo a lawyer donated a while back. It was almost mint.

Im open to all suggestions, ive been searching craigslist for the past few months just getting an idea of what i might be interested in, there are definantly some deals on there as well. Im gonna have to check out the volunteers of america thing. Thanks.

well the police auctions ive gone too dont start with crazy prices. it's usually good/reasonable prices. these are just impounded cars that were never claimed. some are nice, some are decent, but 80% are trash

Ya, im really trying to start off with like a 500 dollar car or something. WE have a local auto auction that is open to the public here in houston. Its every wednesday and saturday. Im planning on going up there first of january to see what their auctions are like.

Sometimes you get lucky at auctions, however sometimes you get something with a lot of non-stated problem. One of my friends got a jeep that ended up having to get the whole front axle and hardware replaced (couldn't see it from the outside). A couple have had unstated water damage and have just been money hogs. I've gotten somethings from auto (insurance) auctions and fixed them up, or had them fixed up, and they were good deals. I also know a lot of people who buy from auctions to sell. They don't typically do real well (and they are car people). They make a bit, but not many make much. It's not easy work. If your looking for yourself, you can get lucky but a lot of times after getting the car fixed and everything, it comes out to the same as you could have gotten on Craigslist if you wait for what you want, and not spend the time fixing it.

Thanks.

 

[LaserRed38 10+ year member]

my cousin's stepdad does this all the time with the police auctions. i guess it depends on your area. it doesn't happen very often, but you will see vipers/vettes/porsches going for like $17-20k. lightnings and cobras for like $15k. newer mustang GTs and Z28s going for $5-7k.

 

[2002XLT 5,000+ posts]

I went to an auto auction, test drove a car, and the exhaust fell out when i was driving. Very good deal if you ask me.

If that was the only thing wrong with it, then it might have actually been a good deal. //content.invisioncic.com/y282845/emoticons/cool.gif.3bcaf8f141236c00f8044d07150e34f7.gif

my cousin's stepdad does this all the time with the police auctions. i guess it depends on your area. it doesn't happen very often, but you will see vipers/vettes/porsches going for like $17-20k. lightnings and cobras for like $15k. newer mustang GTs and Z28s going for $5-7k.

I guess im just going to have to go check a few out and see what happens.

 

[systemJLx 10+ year member]

im not sure on the exact number but u can buy like 4 or 5 cars a year without having a dealer's license.