Online Car Auctions: Who Can Buy? (2024)

Summary

Many states have different rules and regulations that must be followed for licensed and unlicensed buyers to purchase vehicles during online auctions. It is critical to understand which documentation you’ll need to provide before registering to purchase auction vehicles, or if you’re required to have a third-party broker facilitate your purchases during and after the auction process.

Any number of reasons could send someone searching for a reliable and easy-to-use online vehicle auction.  Maybe you’re a rebuilder with a licensed business, or perhaps your hobby is taking beat-up buckets and turning them into dream rides. Whatever your reasons, there are a variety of ways for anyone looking to buy aftermarket vehicles to begin bidding and buying online. 

While there are various rules and regulations for online vehicle auctions – many differing state by state – almost anyone can set themselves up to procure light-damage, used, salvage, clear-title, and other aftermarket vehicles through a digital marketplace. 

Gaining bidding and buying privileges will require registering for a buyer account specific to your goals. The online registration process will guide you through each step to maximize your abilities to purchase vehicles you want, from the locations you want, while providing the correct documentation. If you have already registered with one online platform and provided required documentation, there may be options for you to link that account when registering with another marketplace. 

Registering for a Licensed Buyer account allows you to bid at any location where you meet licensing requirements with access to a full inventory of cars, trucks, SUVs, motorcycles, powersport vehicles, etc. Licensed Buyers can also add additional bidders to their account so others within your business have bidding and buying privileges. As with anything pertaining to your business, you’ll always want to ensure you review every requirement and regulation so the process runs smoothly from beginning to end. 

Unlicensed buyers – or public buyers – face more restrictions, and every state has a different set of rules for who can bid on and buy auction vehicles. Some states allow only those with a licensed business to participate in auctions. Some allow the purchasing of salvage titles and not clear titles, or vice versa. It is critical for unlicensed buyers to review each state’s regulations and determine where you can purchase the vehicles you want as you’re considering registration. Creating a Public Buyer account gives you access only to inventory available to the public. Remember that even if a facility is open to the public, it does not mean all inventory is available for the public. While a buyer may be able to bid in Arkansas, one in California may need to use a broker. 

Understanding the specific differences between Licensed and Public buyer accounts can save you a lot of time and frustration when you’re ready to register. And there’s always the chance that neither option suits you, meaning a licensed broker or proxy bidder would be a better fit for buying at auction. 

State requirements are also worth exploring carefully so you never hit a roadblock on your way to a purchase. We’d hate for a new Public Buyer in Illinois to only learn after completing registration that they will need to use a broker to place bids, even on a salvage vehicle. “Know before you buy” is a phrase we all know well, and we’d like to add “Know before you register” to our list. 

Buying vehicles online provides so much more than the obvious benefit of placing bids anywhere at any time. Buyers can take full advantage of a customizable digital experience that puts them in the driver’s seat, saving time and removing the hassles of buying at in-person auctions. 

Start browsing inventory right away. 

FAQs

What are the best car auction sites? ›

The following five websites are the best of the best car auction sites in the world right now.

COPART.
Classic Cars Auctions USA: RM Sotheby's.
Classic Cars Auctions USA: Worldwide Auctioneers.
Classic Cars Auctions USA: Bonhams.
Biggest Car Auctions in USA: Gooding & Company.
Biggest Car Auctions in the USA: Barrett-Jackson.

Get More Info ›

How to win online car auctions? ›

Top 5 Tips on How to Score a Gem at an Online Car Auction

Do your homework. Since an online car auction showcases a ton of different makes and models, it's important to do research regarding the vehicles you're interested in ahead of time. ...
Set a max bid. ...
Never overlook the mileage. ...
Remember that age matters. ...
Bid wisely.

Jan 30, 2018

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Are online car auctions legit? ›

It's important to be aware of the potential for scams when buying a car through an online auction. Scammers may post fake listings or misrepresent the condition of the vehicle in order to trick you into making a bid.

Who is the biggest car auction company? ›

Over the past 40 years, RM Sotheby's has continued to lead the global collector car auction industry with unparalleled capabilities, expertise, and resources. This has made us the preeminent market maker of high-quality collector cars and collections, regardless of size or complexity.