You've certainly heard that buying a car up for auction It can go for up to half the price, which is a good thing, isn't it? But at the same time, you must have wondered, why do vehicles go to auction? What are the reasons why cars are sold for up to half their value?

This is a very common question, and it leads many readers to write to us asking why cars, motorcycles, trucks, and vans end up in an auction. 

Therefore, with the goal of providing as much information as possible about the automotive market and the different types of vehicles, we will address this common question from our audience. 

If you're one of those people who'd like to know why vehicles end up at auction, the time has finally come to find out. Let's go?

As we know, we are experiencing a delicate moment, where many people have started looking for the best investment alternatives in all areas. 

One of the best ways to invest your money is by buying an asset that costs what it's really worth, and when it comes to cars, the best way to find this type of deal is through an auction. 

Ultimately, it is at auctions that motor vehicles are sold and can be acquired for prices well below those practiced in the market!

Therefore, if you've planned to buy and resell vehicles to make some money, or simply want to buy a car or motorcycle for up to half the price, auctions, whether in person or online, are a good option. onlineThese are the most favorable path to a functional and economical purchase. 

If you've ever wondered why vehicles go to auction and why they're so cheap, now's the time to find out the answer to those questions. 

To do that, just keep reading! Ready?

The time has finally come to unravel the mystery surrounding auction cars. After all, why do some of them end up in auction yards and are sold for up to half their price?

There are not one, nor two, but four main reasons why vehicles go to auction. 

When someone asks you, "Why do vehicles go to auction?", answer that one of the most frequent reasons for holding an automotive auction is legal proceedings. 

These are situations where, in order to settle a debt, an asset of great value is required, the most common being real estate and, of course, automobiles. 

Regarding the source of these lawsuits, they may be:

Once the judge responsible for analyzing the case decides to seize and sell the assets, their immediate destination is the auction. 

The rationale for this is the need to maintain transparency regarding the transactions in question. 

This is a classic reason why a vehicle goes to auction. 

Here's another reason why vehicles end up at auction: the occurrence of accidents. 

When it comes to cars, collisions are commonplace. When they are of medium severity, it means that the vehicle suffered partial damage, unlike the well-known total loss, which makes any attempt to recover the vehicle impossible. 

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

Before being sold, however, it still undergoes tests that certify its safety level. If it passes the test, the vehicle earns the CSV seal – Vehicle Safety Certificate. 

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

If a vehicle is found after being stolen, it is also subjected to inspection. The aim here is to confirm that any damage is located only on the exterior.

In any case, vehicles resulting from this type of accident 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. 

And lastly, another risk associated with auction cars is natural disasters. 

The most common situations in this case are storms and trees falling on the vehicle. 

It is also important to mention floods, provided they do not cause total loss of the vehicle. 

This is one of the answers to the question of why vehicles go to auction!

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 quickly, contributing to the stability of cash flow and guaranteeing an important financial contribution to purchase new vehicles. 

As many people know, the price of most cars sold in Brazil is beyond the financial reach of many, and a large part of this accumulated value is due to the taxes levied on this type of asset.

And because they are expensive, it's common for many people to choose to finance a vehicle. 

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 conclusion of non-payment is precisely that. holding an auction. 

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

The same outcome is common in the case of financed properties that are not paid for.

That's why a financed car is called an encumbered vehicle, because as long as there are outstanding monthly payments, the institution in charge of the financing is the true owner of the vehicle. 

And the person who requested this payment method is someone who only has the right to possession of the asset in question. 

Now that you know why vehicles go to auction, you're probably wondering if buying a car at auction is... something safe. 

And we'll answer you in advance: 

Yes! It's a safe purchase, but some precautions need to be taken before bidding on a vehicle at auction. 

Among the main precautions we can mention are:

Now that you know why vehicles go to auction, how about finding out the steps to buy a vehicle this way?

For this reason, we have prepared content that shows a step-by-step guide on how to participate in this type of auction and, most importantly, where to find your copy. 

To learn, all you need to do is click the button below!