When we talk about auction carsWhile some consider the risks, others consider the opportunities. On the one hand, goods sold in this way are characterized by a price below market value. On the other hand, there is no guarantee, exchange, or return policy. 

However, it's important to keep in mind that this is a category of car buying and selling that has been growing significantly in Brazil, and most importantly: it's legal! 

To guide you in a simple and straightforward way, we'll show you when it's really worth buying cars at auction.

If you want to buy one or more cars sold at auction, whether for yourself or for resale, reading today's article is a must. 

Ready to check out the tips?

Vehicles sold at auctions can have different origins. 

Knowing the history of the car you're interested in is important because it will help you decide whether or not it's worth buying.

We will now show the main origins of cars sold at auctions:

These vehicles were involved in accidents and were declared a total loss by the... insurance companyThe celebrity passed out.

They can only be acquired from scrap yards or junkyards, which is why they end up at auctions. Therefore, caution is needed in these cases. 

Another example of cars being sold at auctions is vehicles that were being financed and whose owners stopped making payments.

As a result, the finance company seizes the vehicle and sells it to a new owner through an auction. 

This is a great car to buy at auction!

There is also the possibility that a brand new vehicle may have suffered some kind of damage during transport from the factory.

Therefore, the brand can then choose to sell these damaged vehicles at auction.

These specimens can cause anything from minor scratches to major damage.

In cases of minimal damage, this is a great buying opportunity. 

And lastly, auction cars may originate from company fleets. 

They renew their vehicles from time to time and may prefer to sell them through vehicle auctions. 

With a little attention and patience, it's possible to find good examples and get a good deal. 

Many auctions are held online, due to convenience and even because of the pandemic, but the process is the same as when they occur in person. 

To participate in an auction, the buyer must register on the auctioneer's website and submit documents proving their eligibility. 

Next, he can view the cars listed on the company's website, and if he wants to buy any of them, he will need to participate in an auction. 

By participating in the auction, interested parties can place their bid.

However, it is only in the last 60 seconds of the auction that the new owner will be determined. 

Bids are placed at this moment, and one offer can quickly be outbid by others. 

If you make the selling bid, that is, if you make the highest offer for the car, then you can buy it. 

But here's a VERY IMPORTANT warning: if you buy something, you have to pay cash. 

Every car purchased at auction must be paid for in cash. If the winning bidder fails to pay the amount, their name will be added to the credit protection services SPC and Serasa, and they will also be required to pay a fine.

Once payment is made, the buyer takes possession of the vehicle and must sign a receipt. 

From the moment the vehicle is taken away, the buyer becomes responsible for any problems, debts, and issues the vehicle may have, as detailed in the auction notice. 

Regarding the process of transferring ownership of auction cars, it is carried out in the same way as when buying from a dealership. 

Something important that everyone needs to keep in mind is that auctions charge fees. 

Therefore, anyone thinking of buying a vehicle to resell needs to be aware of the total purchase price, which includes the car's price and any applicable fees. 

In addition to the agreed-upon price for the vehicle, the buyer must pay the auctioneer's commission, which is 5% on the amount paid, plus some administrative expenses. 

Administrative expenses are determined by state agencies and depend on the amount negotiated in the transaction. 

In the state of São Paulo, for example, an auction of R$ 20 thousand to R$ 24,999.00 will result in a fee of R$ 1,750.00. 

Therefore, we emphasize here that to buy a vehicle at auction, it is necessary to understand the entire process in order to get a good deal. 

The auction process is defined by law in Brazil. 

According to the legislation, auction is the only category where an item can be sold in its current condition and without warranty or return.

Therefore, some cars are sold with known defects that are explained in the lot description. 

The law also stipulates that it must be reported whether the car has been involved in any type of accident or other events in its history. 

Therefore, the buyer should not place a bid without obtaining all the necessary information. information whatever you can. 

First and foremost, the buyer must know the company conducting the auction and read the auction notice VERY carefully. 

The auction notice is provided by the auction organizer and details all the rights and obligations of the buyer. 

There are some golden tips for making a good deal at auction. They are:

Is it worth buying cars at auction? 

The answer is yes!

Aware of all the risks, which we have shown here, it is simple and possible for a buyer to get a good deal when purchasing a vehicle from an auction!

There are many cars sold at auction that have never been damaged and were recovered from owners who failed to pay their financing installments.

Vehicles of this type can have low mileage, and with a well-verified history, they can be a great buy!

After discovering that buying cars at auction is a great option, how about getting to know the best auctioneers for you? buy a car To call it your own or to resell it? 

To do this, simply click the button below and begin your hunt!