| Annually there are numerous cars disposed of at | | | | Conversely, trucks and vans usually get more use |
| car auctions. These auctions go by different | | | | and abuse. All types get adequate maintenance so |
| names based on their backgrounds, i.e., salvage | | | | this is not an issue. |
| car auctions, police auto auctions, seized car | | | | - Repossessed |
| auctions, damaged cars, car dealer auctions, etc. | | | | Finance companies facing unpaid car loans have to |
| Mostly though, these auctions are only offered to | | | | repossess, or seize the vehicle. When this |
| automobile dealerships and the public can not | | | | happens an auction is their only choice for |
| attend. The current exception to this is the | | | | removing the car from their possession. Buyers |
| introduction of web-accessed auctions like Car | | | | can get excellent deals on repossessed cars |
| Auction Inc where these vehicles are available to | | | | because the banks only seek to offset their |
| the public via the internet. | | | | losses from the loan. The car's condition is |
| The selling price of cars sold at the auction is | | | | another issue here, as there is a higher chance of |
| always less than what the dealer would advertise | | | | neglect and possible sabotage by the delinquent |
| on its lot, because the specific seller's need to | | | | owner. Repairs and maintenance could have been |
| clear their inventories quickly and hassle-free. | | | | ignored, too. |
| There are several of groups these unwanted cars | | | | - Trade-ins |
| originate from: expired leases, old rental car fleets, | | | | When a dealership accepts a trade-in for a new |
| aging company cars, repossessed and seized | | | | car, they don't often keep these older cars on |
| vehicles, and trade-ins. | | | | the lot for resale. Retaining aging vehicles is |
| - Leases | | | | unfavorable to dealerships because the costs are |
| Banks and financial institutions with vehicles with | | | | high and can adversely effect their reputation. If |
| expiring leases use closed auctions (private, not | | | | they have many cars of this nature on the lot |
| open to the public) to sell off the cars. Off-lease | | | | not being sold, then poor salesmanship could be |
| vehicles are good specimens for auction | | | | implied. So it is wise to move these trade-ins out |
| participants as they are usually in good repair | | | | of the inventory. At auction they can usually yield |
| because of limited mileage, regular maintenance, | | | | a bit more than what they offered on the |
| and penalties for neglect and excessive wear. | | | | trade-in. The condition of these vehicles is all over |
| Also, the banks choose to liquidate them in a | | | | the place, as some have after-market additions, |
| timely manner and thus, compromise by accepting | | | | and some may be older and out of warranty. |
| lower selling prices.. | | | | Many in this category of cars will be of high |
| - Rentals | | | | quality and late models still under warranty. |
| Car rental companies like to swap out their | | | | Federal law states that full disclosure of any |
| vehicles on a yearly basis to make room for the | | | | major mechanical problem, which may void the |
| new ones. This creates a substantially large | | | | warranties. Cars with a troubled history are |
| amount of late-model cars in the marketplace. | | | | classified as salvage, and are put up for auction |
| They rely on auto auctions too for a quick sell-off. | | | | mostly by the insurance companies that had |
| These cars are in demand by bidders because | | | | underwritten them. So in addition to these car |
| they are well maintained and usually less than a | | | | dealer auctions there are salvage car auctions, |
| year old. Despite that, they frequently have high | | | | and police auto auctions that may include |
| mileage and rough usage by the wide array of | | | | government cars as well. |
| drivers and driving conditions. | | | | Before car auctions on line were commonplace, |
| - Company cars | | | | most of the auctions were closed to the public |
| All sizes of companies often have fleets of cars, | | | | and reserved only for auto dealerships. Now, with |
| trucks, or vans for their employees that they | | | | internet services like Car Auction Inc, that does |
| choose to replace every two or more years. This | | | | not stand. With access to the World Wide Web, |
| is another example of the need for a car auction. | | | | the general public can join the party and share in |
| Company vehicles driven by the upper tier are | | | | the great deals offered by car auctions that only |
| often luxury cars and are usually driven gently. | | | | an exclusive few formerly enjoyed. |
| Thus they tend to be in overall good condition. | | | | |