Buying an impounded vehicle can be an easy and cost-effective way to find your next car. When you decide to go this route in purchasing a vehicle there are a few things you should know. This article will go through the benefits of buying a car from an impound, and also walk you through the steps and things to watch out for.
What is an impound auction
Cars can find their way to an impound in a variety of ways. While many of the vehicles in an impound auction are destined for the crusher, there are also plenty of perfectly running and driving vehicles waiting to be picked up by their next driver.
Cars make their way into an impound lot when they are towed and then go unclaimed from that lot. Typically the “seller” of those vehicles will be either a city impound or an independent tow lot.
For example the City of Nashville Impound runs its auction on Autura Marketplace. We also run the auction of independent tow lots like Quality Towing in San Diego. The seller has the legal right to sell these vehicles and will be the one who provides you with documentation, like a title, when you buy the vehicle.
How do impound auctions work
An impound auction will either have a physical location or be conducted online. There are cases where they have a hybrid auction with both in-person and online bidding.
Many of these sales run like a traditional auction would whether they are online or in-person. Vehicles are listed and then open for bidding. There is a pre-bidding window and then a live sale. When the live sale starts, vehicles are sold one-by-one until the timer expires and the highest bid wins the vehicle.
On Autura Marketplace we also run a listing sale type. This sale type operates more like eBay where the listing has an expiration time and bids are due before then. The vehicle is sold to the highest bidder at expiration.
What are the benefits of buying from an impound auction
There are many benefits to buying from an impound auction. When you understand how the auction works and are willing to do a bit of your own research, you can come away with an amazing deal
- Unbeatable prices: While cars at an impound auction typically require more work than a car you’d buy from a dealer, the savings can be substantial. Many cars sold at auction go for well below the book value of the car. Even if the car goes for book value, you will often save money and time that would otherwise be spent on fees and add-ons elsewhere.
- Skip the dealer: We love dealers and think many of them provide a great experience. With that being said, we know there is value in getting a car without having to spend hours at a dealership. With Autura Marketplace and other auctions, you can skip the negotiation and get a good vehicle at a fair market price.
- Unique inventory: You won’t find the cars you see at auction anywhere else. The vehicles listed on Autura Marketplace are listed exclusively on Autura Marketplace.
If you are looking for a project car, impound and salvage auctions are a great place to start. If you are looking for a classic car, impound auctions are a great place to start. Even if you are just looking for your next daily driver or a starter car, impound auctions are a great place to start.
Things to look out for when buying impounded vehicles
While the benefits are great, there are also a few things you need to look out for when buying at an auction.
Vehicle condition is not guaranteed when you buy from an auction. Many of these sales are final and “as-is.” That means you have no guarantee on the car’s condition or recourse if the condition was not what you expected. That is why it is important to pick a trusted auction provider and do your own research.
While Autura Marketplace is an as-is marketplace, we provide in-depth vehicle imaging and detail so you can buy confidently. We also offer enhanced vehicle details like VIN and documentation so you are empowered to do your own research before buying.
Depending on the state you plan to register the car in, you also need to consider state and local regulations. Every state is different when it comes to titles and registration. For example, most states require a vehicle with a salvage title to pass an inspection before being able to register the car.
Some cars may also have a lien still applicable to them. In this case you will need to work with the lien holder and the state to ensure you are able to obtain a title for that vehicle. If you don’t have the proper licensing (recycler, scrap, dealer, etc.), we recommend visiting your local DMV website before purchasing a car without the designation of “clean title” in the documentation.
Should you buy from an impound auction?
Tow and impound auctions can be a great way for parts resellers, scrap yards, wholesalers, and even dealers to find an additional source of inventory. So if you fall into one of those categories, yes, you should absolutely be looking for vehicles at tow and impound auctions.
If you are simply looking for your next car, or are looking to fix and flip vehicles as a side hustle, Autura Marketplace and auctions like it can be a great place to find a deal. If you follow the manual we laid out above, you can be just as confident buying from an impound auction as you would be at a dealership.