Auto auctions

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Contents 1 Overview 2 Country Specific 2.1 Japan 2.2 United States 3 References

[edit] Overview

Auto auctions are a method of selling new, and most often, used vehicles based on auction system. Auto auctions can be found in most nations, but are often unknown to most people. This is, such as in the case of the United States, because this a protected source for used car dealers. In other countries, such as Japan, auto auctions are well known and used (indirectly) by most people.

[edit] Country Specific

[edit] Japan

Auto auctions are the most popular method to sell used vehicles in Japan. Most customers are Japanese seeking a cheap vehicle to start with or replace their older vehicle. Also there many also trying to sell their vehicles. Individuals though cannot directly use auto auctions, but must go through those holding auction membership. In Japanese law, only dealerships may become members to auto auctions. The way the system is set up allows people to have access to information, but keep the auctions orderly with only professionals actually able to bid.

A small percentage of the dealers that are members of Japanese auto auctions are also used vehicle exporters that most often use the auto auctions as their primary source of used vehicles. Other than these exporters, most members are used vehicle dealership that sell in Japan and are used by Japanese people to find a car they want.

In Japan there are over 30 well know auto auction groups and over 200 auto auction locations throughout Japan.^[1] Additionally, there are more smaller auctions held for specialized items.

[edit] United States

In the USA, auto auctions are relatively unknown but do exist. Most auto auctions are close auctions, meaning only dealers can use them. There are also auctions that are open to the public. Most auctions in the United States are used by banks, IRS, and other government agencies to sell repossessed vehicle because failure to pay payments or taxes, or are seized by the FBI, DEA, or the police. Also, there are some that sell US Government vehicles.

Online auto auctions are also growing in popularity. One of the most popular online car auctions is Ebay. On Ebay, any user can create an account and put their vehicle(s) up for auction. There is usually a small fee associated with selling your vehicle on Ebay. At the time of this writing (2/5/2008), there is a $40 insertion fee, and a $50 transaction fee (total: $90.00) for passenger vehicles ^[2]. The transaction fee is only charged when the first bid is made (if your automobile has no reserve price), or if your reserve price is met. If there are no bids on your vehicle, or if none of the bids meet your reserved price, you will not be charged the transaction fee. Buying a car on Ebay is even simpler. All you need to do is create an account, then proceed with bidding on your desired vehicle. Some automobiles will have a 'Reserve Price' which is the minimum price the seller will accept for the vehicle. If the reserve price is not met, the vehicle will be considered unsold. The bidding on some cars, particularly popular cars with a low reserve, can become fierce. Bids may be entered up to the very last second.

There is currently a Car Auction Listings by State resource squidoo.com/carauctionsdirectory. This is a compiled list of both dealer and public auto auctions.

[edit] References