Selling your car at auction may seem like a nerve-wracking process that moves too quickly for you to comprehend everything that is going on. However, there are a number of advantages to sending your pride and joy to an auction, including the possibility of a higher selling price. In this AutoFlip blog, we’ll run through exactly what is involved in selling a car at auction, allowing you to determine whether it’s worth sending your vehicle under the hammer.
What Does It Mean to Sell a Car at Auction?
In theory, selling a car at auction is a simple process. Your car is displayed in the hall and people bid for it, with the highest bidder buying or ‘winning’ the vehicle outright.
However, the process of actually selling your vehicle has become more complicated. These days, auctioneers take bids not just from people physically in the auction hall, but from remote attendees on phones, video calls and even via online auctions.
How Can I Sell My Car to an Auction? The Process
Selling your car at auction is a multi-step process, which takes more time than people think. If you’re after a quick sale to free up garage space, auctions may not be for you. If, however, you have a rare car you think enthusiasts will want to bid competitively to own, the following steps are worth knowing:
Register Your Car
First up, you'll need to provide the auction house with comprehensive information about your vehicle, including its year, make, model and VIN. At this point, you may also want to highlight any rare features or options your vehicle has. You will also be required to pay an auction registration fee at this time.
Set a Reserve Price
Something else that is worth considering when selling a car at an auction is the concept of a reserve price. A reserve is a minimum selling price that can be applied to your vehicle. If bidding surpasses that number, the car sells. If it doesn’t, you can choose to sell your car to the highest bidder, or ‘pass it in’ and retain it for sale in the future.
The Main Event
Once the gavel starts swinging, your car's fate lies in the hands of the bidding audience whoever showed up that day. The auction process moves very quickly, but as the seller, all you have to do is watch and listen for the numbers to steadily increase. Hopefully, they do just that and your car sells on the day, however that is the main gamble with selling at an auction.
Payment and Fees
While the outright sales price at an auction may be higher than even a private listing, you then need to deduct the associated fees from the final number. Even so, an auction can be a profitable method of selling your car, especially if luck is on your side on the day.
How Much Do Auction Cars Sell For?
While there’s no hard and fast guide to how much your vehicle will sell for, many auction houses do provide a guide price range. The high and low estimates of the guide price can be used to predict the final selling price of your vehicle, depending on the strength of the bidding on the day of the auction.
There are some certainties in the auction process, though. The seller’s fee is usually around 5-7% of the final selling price, which is a figure worth factoring into the auction house’s guide price to evaluate whether it’s worth sending your vehicle to an auction.
Sell Your Car Easy With AutoFlip
If you’re looking for a simpler path to sell your car for cash, choose AutoFlip. Our online sales process connects you directly with over 1,000 trusted dealers who compete to buy your car.
Regardless of what vehicle you own, our comprehensive platform ensures it is ready for its next owner, helping to connect you with dealers eager to make a representative offer for your car. Join thousands of satisfied sellers who've discovered why AutoFlip is the quick, convenient choice.
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