Protecting yourself when you buy a car at an auction

An auction is defined as a public sale in which property is sold to the highest bidder. While you can often find a good deal at an auction, you can also easily get ripped off. This is probably even more true when it comes to automobile auctions that sell used cars. There are several ways however, to protect yourself and make sure you don't drive away with a lemon.

Before going to the auction sign up to access the online CARFAX vehicle history reports that allow you to pull up all the information on the car by using the VIN#s.

Make sure your contract with the auction company clearly states the title indication light, which are either red, green or yellow. If the purchase turns out to be a red-light title problem later on, yet they told you it was green, you will be able take recourse against the company.

You will want to have a Kelley Blue Book, NADA guide or Edmunds book if you're going to a public auction. If it's a wholesale auction, bring a Black Book.

When you find the car you like, do a complete physical check. Above all, look for the VIN# stickers to make sure they all match. If they don't, this can tell you the car is either stolen or, it was in a wreck and fixed with parts from another car. To check the VIN#s use your computer to run a CARFAX report or call someone who can. Always verify the auction's title checks.

Be careful not to get caught up in the excitement of a bidding war and spend too much for a car. If you can't get the car for a comfortable price below published value, then the auction was a complete waste of time for you.

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