Auctions have become great opportunities for those who want to save large sums of money when acquiring high-value assets, such as real estate and... vehicles of all different typesWhether conducted in person or online, buying a car at auction has become increasingly common for many Brazilians. 

But unfortunately, fake news isn't just present in politics. 

In the world of automotive auctions, there are many lies that have been told for a long time but are still considered truths today, causing a great deal of doubt among a large number of people. 

That's why a number of questions still arise for those looking to buy cars at auction, especially for those who aren't very familiar with this type of transaction. 

Therefore, in order to clarify a number of issues, we have separated the 4 main questions about auction cars. 

If you have any questions about this type of vehicle, reading today's article is more than mandatory! 

Discover now what the main questions are about auction cars, and at the end of the article, find out the answer to whether or not it's worth buying a vehicle in this type of transaction. 

Ready to check it out?

This is one of the most common questions about auction cars, and the answer is quite straightforward: No! 

The mere fact that a car comes from an auction does not mean that it has any kind of defect. 

Although this thought is common and recurring, you need to know that there are several factors that can cause a car to end up in a vehicle auction. 

Cars sold at auction often originate, for example, from lawsuits related to debts or from company and rental fleets. 

In these cases, most of them are in good condition and do not require any repairs or adjustments. 

Now, during the pandemic, because many people lost their jobs, we saw a lot of people unable to pay their loan payments. 

With overdue debts, banks and financial institutions can repossess vehicles from defaulters and auction them off to avoid losses. 

However, it is important to clarify that there are indeed situations where an auction car is sold with damage or even as scrap for parts. 

If that is the case, all information regarding the conditions will be present in the auction notice for the vehicle to be auctioned, which should be read by anyone intending to... participate in the auction. 

This is another very common and even important question, and fortunately, the answer is yes. 

A car bought at auction can indeed be insured, but it depends on the situation. 

This is because cars purchased without defects can usually be accepted by insurance companies, being compared to a used vehicle. 

Furthermore, it is necessary to ensure that the other characteristics of the vehicle allow it to... car insurance should be done. 

These characteristics are: the vehicle's model and year of manufacture. 

However, if the vehicle purchased at auction has a history of accidents, it is very likely that the insurance will not be approved. 

But it's important to point out that this is a criterion adopted by insurance companies when evaluating any and all types of vehicles, and has no bearing on whether the car was purchased at an auction. 

Generally speaking, any and all types of vehicles purchased at auction must be paid for in cash. 

This payment can be made via identified bank transfer or through a payment slip that can be paid at any financial institution within a specified period, which can be up to 7 business days. 

Although still somewhat timidly, depending on who is promoting the auction, some banks and financial institutions are already offering the possibility of payment via financing. 

In this case, the winning bidder can finance the auction payment and pay it off smoothly in smaller, more affordable installments. 

But this is still a minority view and is not reflected in the reality of many auctions across the country. 

It is important to point out that this amount also includes the auctioneer's commission and any additional costs, such as towing, documentation, and settlement of outstanding debts such as fines and taxes, for example. 

Therefore, it is important to consider these costs before even placing a bid, avoiding the problems of a withdrawal or non-payment of the bid. 

Due to the large number of vehicles typically traded at a single auction, it's best to inspect the vehicle in person. 

Although many people don't know this, cars sold at auction cannot be started or test-driven. In other words, you can't take them for a test drive. 

The only way to assess the vehicle is with your eyes and hands. 

Therefore, if you are thinking about buying a car at auction, the advice we always give is this:

Go see the car in person and take a mechanic you trust with you! 

Only a specialist can notice something wrong with the car and save you from a bad deal that could become a loss in the future. 

In addition to physically inspecting the vehicle in person, another very effective and functional way to ensure that the vehicle is of good origin is through the use of information available in the auction notice.

The auction notice contains a series of documents about the vehicle, mainly the Renavan number.

With the Renavam number, it is possible to know the entire history of the vehicle, such as any fines, accident history, and if there are any outstanding documents that need to be resolved. 

And the last question about buying a car at auction is this: is it really worth buying a car at auction?

This is a question that reaches the experts at Senhor Carros almost every day, and we answer it without a shadow of a doubt: Yes! 

Buy one A car from an auction is something that is well worth buying.. 

The primary reason for this is the price. At an auction, it's possible to find vehicles for up to half the price listed in the FIPE table. 

Another interesting point is the wide variety of makes and models that can be found at an auction that would never be found in dealerships or vehicle lots. 

And last but not least, it's important to highlight that vehicle auctions are a safe and legal way for Brazilians to buy vehicles for prices well below market value. 

Therefore, if you want to buy a car and don't want to spend a fortune, our suggestion is simple: Look for a trustworthy auction. 

Now that you know everything about auction cars, let's continue helping you with this topic. 

We've selected some great auction houses where buying your car is a quick, simple, and fun process. 

To find out what those options are, just click below!