Many people make a living buying and selling cars. What most people don't know is that many of the cars resold are... purchased at auctionIn the midst of this crisis caused by the pandemic, many people ended up losing their jobs, and one of the best ways to change professions and earn money is through vehicle auctions. 

If you became unemployed during the pandemic, are thinking of firing your boss, or simply want to make some extra money, know that this is a great way to achieve the much-desired financial freedom, so reading today's article is more than mandatory. 

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The first point to be made here is that car auctions are a safe and legal way to buy vehicles, and with the arrival of the pandemic, car auctions, especially online ones, have become a craze.

Today, anyone can trade from wherever they are, at the time that is most convenient for them. 

The business works as follows:

You buy the car at auction for a lower price than it's worth. value in table...then resells it for a higher price. Simple as that. 

That seems advantageous, doesn't it?

But here it's necessary to understand a very important point: why are cars sold at lower prices?

Ultimately, that's what makes it possible to make money with auction cars. 

The reason why auction vehicles are so cheap is because of their origin. 

Auction vehicles can have 4 different origins. They are:

Let's talk a little about each of these vehicle origins and how they allow you to make money from car auctions, all within the law!

Legal proceedings are initiated to enforce the payment of debts that individuals and companies may incur through lawsuits. The most common are:

Thus, it is common for the judge responsible for the case to decide to seize assets in order to settle debts. As a way to obtain quick cash, real estate, furniture, and especially vehicles end up at auction. 

When we talk about vehicle recovery after claims, we're typically referring to vehicles recovered from minor to medium-sized accidents. This is different from the well-known total loss, where the vehicle is beyond repair. 

In the case of medium-level collision accidents, the car receives new parts that are essential for its full functionality. 

Before being sold, these cars undergo tests that certify their safety level. When the car performs well in the tests, it earns the CSV Seal, which is the Vehicle Safety Certificate. 

There are other types of accidents that can lead to a car being auctioned off. 

If a vehicle is found after a theft or robbery, it is also subjected to inspection to confirm that any damage is located only on the exterior.

It is common for vehicles resulting from this type of accident to have a good chance of being repaired and recovered. 

Once this is done, insurance companies send them to auction, where they can be bought for prices well below the market value. 

This is one of the best reasons why it's possible to make money from car auctions.

Faced with the need to renew the vehicles that make up their fleet, medium and small companies are choosing to auction off their older models. 

With this measure, they recover part of the value invested in cars, motorcycles, vans and even trucks in a fast way, contributing to the stability of cash flow, guaranteeing the necessary funds to buy new units. 

And that's the last reason why vehicles go to auction and it can guarantee some money in your pocket. 

From the moment a person signs a financing agreement, they become indebted to the institution that granted the credit for the purchase of the car. 

In practice, since the number of installments tends to be reasonably large, the risk of unforeseen financial problems arising along the way is also high. 

Unable to continue making monthly payments on the vehicle, the owners are then ordered to return the vehicles to the companies that facilitated the installment plan. 

The consequence of non-payment is precisely the holding of an auction. 

This solution found by companies is the most useful for reducing losses associated with buyer defaults. 

Now that you know the reasons why a car ends up in an impound lot, it's time to learn the 10 steps to... Make money from car auctions. and achieve that long-awaited financial freedom.

There are several factors that make auctions a lure for making money. 

The first reason is that they usually happen far from dealerships, which helps to reduce competition. 

Furthermore, the possibility of the cars having minor defects drives the prices even lower. 

But this is just the beginning. 

If you follow our guidelines, we guarantee you: Your money, and consequently your financial freedom, will be secured. Let's go!

The first step for anyone looking to make money at auctions across Brazil is to start by studying auctions. 

Learn how an in-person auction and an online auction work. 

Go to the auction houses on the day of the auction, observe how the activity unfolds, and most importantly: familiarize yourself with the terminology used. 

Although the terms may seem confusing at first, they quickly become familiar and even funny. 

You're unlikely to win a car at the first auction you participate in. 

Everything in life requires prior knowledge and dedication, and to make money in this world you also need dedication. 

This is one of the most important points for you to make money with car auctions.

Before entering this world, many people believe they only need to pay the price of the car. A rather common misconception. 

In addition to the car's value, the winning bidder must also pay:

5% commission for the auctioneer or the company organizing the auctions;

Administration fees;

Other values, depending on the type of auction and the organizer.

In addition to all this, it's important to keep in mind that you'll need to pay for the registration paperwork, as well as any potential mechanical and cosmetic repairs. 

All this information regarding what needs to be paid and the actual condition of the vehicle is in the tender document. 

Another important point you need to know is that normally, the car payment needs to be made in cash. 

And that in itself makes the chances of making money even greater, since the competition ends up being less. 

Another important point for making money buying and selling vehicles or scrap metal from auctions is the need to have a relatively large cash reserve. 

In addition to having cash on hand, it's important to have working capital. 

Working capital is another important point, as it will be useful for purchasing more and more vehicles. 

Experts in buying and reselling cars and scrap metal from auctions say that a cash reserve of around R$ 20,000 is enough to start making money in this type of business. 

“It seems like a lot, but after two or three successful purchases, the money starts coming in and then it’s pure joy,” says Lauro Filho, who has been making a living buying and selling cars at auction for 11 years. 

Here's a very valuable tip, especially for beginners. 

The internet has given many people access to auctions, but as this access has grown, so have scams. 

It's relatively simple to avoid falling for auction scams, but you need to pay a little attention. 

Here are some tips for finding safe auctions and auction houses:

The auction notice is the most important document in an auction. Therefore, reading it is more than mandatory for anyone intending to buy a car at auction for resale. 

This is the public notice that regulates how the auction will take place. 

The auction notice will include information such as date, time, legality, lots available in the auction, the vehicles, starting prices, condition, auctioneer's fee, costs for vehicle documentation, and much more. 

If you want to make money from car auctions, always read the auction terms and conditions! 

And if there's no public notice, our advice becomes an obligation: back out and don't participate!

This tip might seem crazy to beginners, but it's a must for anyone who's been in the business for a while! 

Although many people don't know this, it's not allowed to start the car before buying it. But it is possible to look at it, touch it, and even smell it! 

So, right after reading the auction notice and defining your targets, go to the yard before the auction and observe the car very carefully. 

And here's an important tip: take a trusted mechanic with you. 

Having professional guidance and assistance at this time is crucial to avoid making bad deals and suffering losses. 

And remember when we talked about touching and smelling the car? Well, there you have it. 

Open the doors, open the hood, pull out the oil dipstick, check the latches. This indicates the vehicle's condition.

Regarding the smell, if the car smells musty, give up on bidding. 

Here we enter an important point in the negotiation! 

Knowing the vehicle's market value is crucial, especially when considering resale time. 

Even if you buy it for a price below the normal market value, when you try to resell it, you will hardly be able to sell the vehicle for more than its value according to the FIPE table. 

Auction experts state that typically, most vehicles purchased at auctions offer buyers a profit margin in the range of 20%. 

In targeted and special purchases, these margins can reach up to 30% and 40% in profit. 

When we talk about scrap metal, profit margins are pre-established in the range of 30%. 

After reading the tender notice, understanding the fees, the costs involved in documentation, and potential repairs, you will need to determine a maximum amount you are willing to pay for the vehicle. 

And respecting this maximum value is essential to avoid losses! 

When bidding, always offer amounts below your maximum stipulated value. 

If your limit is exceeded by another offer, you must cancel the purchase!

When you buy a vehicle for amounts exceeding the maximum stipulated, the chances of incurring a loss are high. 

Therefore, accept defeat and move on to another goal. 

An important step in making money from car auctions is buying the vehicle you are targeting. 

Once you've bought the car, you must then register it, pay any outstanding debts, get the paperwork in order, carry out any necessary repairs, and that's it.

One important point we need to make in all of this is that the process of releasing and regularizing the documentation takes between 60 and 90 days. 

And the key to making money is precisely selling the car! 

After you buy the vehicle and get it properly registered, the most important thing is when you sell it. 

Be honest, but firm when negotiating. That's how you'll earn the money to change jobs, fire your boss, and achieve the financial freedom you so desire. 

You can advertise your car on specialized websites, social media, or leave it on consignment at parking lots or dealerships. 

An important point for anyone wanting to make money from car auctions is that it's not enough to just show up and simply... participate in an auction! 

In order to place bids, you need to register, be approved, and qualify to then participate in the auction itself. 

We'll now show you how to complete each of these steps before you can start placing your bids. 

The first step to participating in an auction is to register with the auction house that is organizing the auction for the car you so desire to buy. 

To register, you need to provide the following information:

Once your registration is complete, you will need to wait for approval and complete your activation process as we will show you below. 

Once your registration is complete, your approval will happen automatically; it's really very fast. In just over 10 minutes you will be approved. 

Once approved, you'll be very close to participating in and winning a car auction; all that's missing is the driver's license. 

And that's another extremely quick step. 

To ensure your eligibility, all you need to do is log in to the auction house website you registered with, choose the auction you wish to participate in that includes your car of interest, and that's it, you'll be able to place your bids to raise your money!

And here's an important point worth highlighting: You will need to register every time you want to participate in an auction held by the auction house where you registered.

After your registration is approved and your qualification is completed, it's time to participate in the auction and go after the vehicles that will guarantee you a good amount of money. 

As you've just seen, making money from car auctions is possible, but it requires some study, planning, and above all, self-control. 

Now that you know the ropes for making money buying and selling vehicles and scrap metal from auctions, you must be wondering:

Where can I find car auctions? Are you looking for insurance to buy and resell?

You can find the answer by clicking below!