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Can I Sell My Used Junk Car at Auction?

4 Steps for How to Sell a junk Car at Auction

Step 1: Find Out What Your Car Is Worth

Use the Internet to arrive at a value for your vehicle. Many places offer this information. But the best places to look are junk car auction sites, classifieds, used vehicle sites, and other online marketplaces. If you’re short on time, you can also explore selling your junk car to a company like Pull-A-Part (where you can receive $250-$500 for your junk car – on the spot). Keep this price range in mind as you complete the next steps.

Step 2: Select an Auction House & Research Their Rules

The first question you’ll want to ask before going to an auction house is whether the auctioneer requires a dealer’s license. It’ll take some effort to find an auction company that doesn’t require a dealer permit but don’t let that deter you – keep looking. In case you’re wondering – dealer fees don’t come cheap. While each state is different, you can expect to pay a publication fee, business license fee and an annual bonding fee - which can easily top $1000.

What to Expect from Auction Houses

Another point to keep in mind is each auction house sets its own rules and fees; you must do your homework to determine the best choice for you.

You may also be required to do the following when selling your car at an auction.

  • Hold the Title. Bring the vehicle title to the auction.
  • Pay Fees. Pay an entry fee whether your vehicle sells or not.
  • Towing Fees. Arrange towing to and from the auction (if your junk car doesn’t sell).
  • Physically Present. Be present on-site or accessible during the auction time frame.

Some auction houses assess additional fees based on 1) how many times you put your vehicle up for auction and 2) the minimum price floor you ask bidders to meet. And remember the auctioneer may also charge a commission fee – on top of the entry fee.

Step 3: Determine your Plan for a No-Sell

Don’t forget, with auctions nothing is guaranteed. You may sell your car for less than planned or you may not sell it at all. If your vehicle does not sell, you may not have much time to act. So, consider drawing up a contingency plan that includes selling your car to an auto salvage yard or towing it back home.

Step 4: Weigh Your Options and Assess Your Risk

One more consideration – most people buying and selling at auctions work for auto dealerships or wholesalers. They are earning money (from their employer) for their time spent during and after the auction, which means it’s their employer’s financial risk, not their own. Private sellers – on the other hand – bear all the risk. However, if you’ve got the time and resources and feel the rewards might outweigh the risks, an auction might make sense.

Now that you’re aware of the possible outcomes (and have an idea of the time commitment), it’s time to decide the best course of action – just be sure to weigh all factors before making your decision. If you decide to sell your junk car fast cash click here for a free quote.


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