Auto auctions are becoming increasing popular as the best place to find cars at bargain prices but understanding auto auction prices and how to go about bidding is something that leaves a lot of people feeling very confused. When buying a car from a dealer, there is always a sticker price which you can use as a starting point while you do your negotiations to bring the price done. In the case of an auto auction, there is no sticker price or any other point of reference: the price car is sold will depend on the interest it evokes among the bidders. Probably the only fixed point on auto auction prices is the price at which the auction opens and even this may be lowered if there are no takers for the opening price.
Learning how auto auction prices work is important if you want to be successful in your bidding and the best way to learn is to spend time at auctions watching how the bidding is done. Look out for how the bidding progresses for different categories of cars, which makes get the highest prices and the impact a car´s age has on its selling price. Doing this will give you an idea of how the bidding progresses and what kinds of cars command what kinds of prices at the auctions. While visiting the auctions as a student, pay special attention to how the bidding progresses for the cars you would like to buy.
Auto auction websites and magazines are another good source of information on auto auction prices. Now that you know the kind of prices the types of cars you would like to bid for are commanding, you need to set yourself a budget. Keep in mind that there are no certainties in any auction and if you get caught amongst bidders who are determined to have the car you are also bidding for, the price can sky rocket. Keep your bidding limit flexible as possible so that you have some maneuvering room during the bidding process, but never let yourself exceed the budget: it may seem like a small additional amount to risk, but once you start exceeding you financial limits, it can be difficult to know where to stop.
If, in the course of the bidding, you find there are some people who seem to be extremely interested in the same car that you are, step back from the bidding and let these people fight it out: if the fight ends before the auto auction price ceiling you have set for yourself, you can re-enter the bidding.