Cutting through the misconception that “Auction Cars” are Bad.
Are Auction Cars Bad?
A long time ago, when a used car “went to auction” after being traded in, meant that it was beaten up, past its usefulness, and undesirable. Anymore, the “bad auction car” theory is actually a misconception since really, most used cars on the market go through an auction anyway.
Think of it this way, a customer may trade in a Ford Explorer at a Honda dealership, for say, a CRV, because they want to downsize. This Ford Explorer may only be 1 or 2 years old, with low mileage, and otherwise in excellent condition. That used Ford may not be desirable inventory for this Honda dealer. So what to do? Send it to a reputable wholesale auction, like Manheim. There, dealers bid on this and millions of other vehicles that ARE a good fit for their lot.
It can be okay to buy a used car from an auction, but it is important to do your research and be cautious before making a purchase. Some auctions may offer cars that are in good condition and can be a good value, but others may have cars that are in poor condition or have hidden problems. It is a good idea to inspect the car thoroughly before buying it. It is also a good idea to check the car’s history (via the free CARFAX report) to make sure it has not been in any major accidents or had other major problems. Overall, buying a used car from an auction can be a good option if you are careful and do your due diligence.