Do you know how an online car auction works? No? Then we'll help you!

Well, at a time when many cities are under quarantine due to the Covid-19 pandemic, in-person events and gatherings need to be avoided.

This has led many people and companies to seek virtual ways of doing business, and online car auctions are another one of these modalities that have grown during this delicate time we are living through. 

So, contrary to what many people think, it is now possible to buy vehicles at auctions without leaving the comfort of your home. 

Have you ever imagined if it were possible to buy used vehicles with up to 50% discount compared to the FIPE table? 

Well, you should know that not only is this possible, but it's becoming an increasingly common reality!

In certain situations, it's possible to close great deals, acquiring a vehicle for up to 50% of its market value. 

However, if your goal is to buy a car at auction to resell, profiting from auction vehicles is not as simple as buying a product on sale and reselling it.

To successfully purchase a vehicle in good condition, whether for personal use or resale through an online auction, you need to pay attention, be careful, and know a few tricks of the trade. 

Today we're going to explain how an online car auction works and what the benefits are of participating in this type of business.

So, shall we check it out?

Well, an online car auction is a type of bidding process where a car is offered in a private or public auction on the internet. 

Thus, its objective is to generate a minimum amount of resources to cover the costs of the event, eliminate debts from fines and financing from the previous owner, or liquidate the item.

Therefore, during the auction period, the highest bid wins the competition and acquires the lot. 

In the case of online auctions, this process is simple. You only need to submit your bid amount through the auction website platform. 

Then all you have to do is wait to find out if your bid was the winning one. 

Before even thinking about placing a bid during an online auction, it's important to understand the most important document in the auction: the auction notice! 

This document contains details and information about the lot, the company conducting the auction, and the rules for participation. 

Therefore, first and foremost, it's necessary to carefully review the auction notice to avoid any kind of frustration and regret after the winning bid. 

Therefore, every type of auction requires a public notice, which must be equally considered. 

In the case of online car auctions, the auction notice must include a series of information. These include:

Without a doubt, this is a very common question!

Well, most of the vehicles in an online car auction are products of seizures from traffic stops for tax regularization or due to non-payment of financing by the previous owner who failed to pay the installments. 

Car manufacturers also often auction off vehicles based on certain criteria. 

These are the two best ways to buy a car at auction. 

Since vehicles from manufacturers and defaulting owners are usually in EXCELLENT condition. 

In addition to these cases, the vehicles may also be offered by insurance companies that recovered the cars after thefts or accidents. 

In these cases, the vehicles can only be purchased as scrap metal to be resold as scrap yards. 

Any individual or legal entity, over 18 years of age and without any legal restrictions, can participate in an online vehicle auction. 

Therefore, all that needs to be done is to register your details on the auctioneer's platform and register your interest in participating in the bidding for a lot. 

So, the first step is to register. 

Next, you need to check the available lots. 

The third step involves registering your interest in participating in the auction of one or more lots that include the car you wish to purchase. 

And the last, fourth step is to participate in the auction by submitting your bid. 

Well, the most common practice in an online car auction is for payment to be made in cash. 

In most cases, the winning bidder needs to pay the entire amount as soon as their bid is accepted. 

The payment method will always be described in the announcement.

However, depending on the type of auction and the auction company, it may be possible to pay in installments and even finance the auctioned item through financial institutions or competent bodies. 

Participating in an online car auction offers a number of benefits and advantages to the buyer. 

So, we're going to show you the main ones now!

As one might expect, the main attraction of buying a vehicle through an online auction is the cost savings.

If the buyer is interested in reselling the vehicle, it's necessary to carefully develop a strategy before making the purchase. 

Prices below the FIPE table value are the main attraction in this type of auction. 

However, caution is needed!

To take full advantage of this great benefit of an online car auction, it's essential to consider all the costs involved after the auction. 

These expenses include auction fees, overdue vehicle taxes, documentation, and even potential car repairs. 

Therefore, on the day of the visit to see the car, it's worthwhile to have a trusted mechanic or body shop specialist present to assess the vehicle's condition and estimate the costs. 

In addition, security is the second benefit. 

Especially when the online auction takes place on a platform of an auctioneer with a good reputation, and this is a factor taken into consideration by those who participate in this type of purchase. 

The entire process is protected by law, and once the winning bid is submitted, the ownership rights to the vehicle belong to the buyer. 

Finally, the third benefit of participating in an online auction and purchasing a car is the convenience. 

Imagine being able to buy a used car for up to half the price for your own use or resale without even having to leave home? 

In times of pandemic, being able to participate in online auctions and place bids is a real goldmine. 

Well, the first step to finding the best online vehicle auctions is to look at the auction company's track record in the market. 

Checking your reputation among participants, seeking professional recommendations, and registering with state commercial boards is a good approach.

It's always important to look for the following information:

Another valid point is to conduct a search on the website of ALEIBRAS – the Brazilian Association of Official Auctioneers: an entity that brings together the largest vehicle operators in the country. 

After this verification, try participating in an online auction on the company's platform just to watch and understand the dynamics of bidding and winning bids. 

It is also important to evaluate the batches and varieties of vehicles that the company offers. 

By following these tips, your safety will be guaranteed. 

Now that you know all about online car auctions, how about starting your search?

To help you, we've prepared an article with excellent tips on where to find your car through an online auction. 

To find out which are the best auction company websites, just click below!