My Tips on How to Buy a Car at an Auto Auction in Illinois
Finding a good used car at a decent price? Yeah, that can be tough. Sure, you’ve got dealerships and websites, but honestly, they just don’t compare to the deals you can find at a car auction.
Car auctions can be found all over the United States. They usually operate an extensive selection of used auction cars (click the link to learn about auction inventories), often in good condition. In Illinois, there are auto auctions located all over the state, including several auctions in the Chicago area.
Wholesale car auctions in Illinois are a great way to snag a deal on a used car, if you know what you’re doing. There is a reason people avoid them because they can feel quite overwhelming if you haven’t done your research and understand the process.
My name is Greg Smokes and I have spent decades as a used car dealer around the United States and have bought and sold thousands of used cars at auctions, including Illinois.
Types of Car Auctions
There are two main types of car auctions in the United States: dealer car auctions and public car auctions. Dealer auctions are only open to licensed dealers, while public auctions are open to anyone.
Public auctions are usually divided into government, police car auctions, and wholesale car auctions. You will find city and county police cars, bikes, buses, and utility vehicles at the police car auctions whereas a wholesale auction will have used cars from dealer trade-ins, bank repo cars, for sale by owner cars, and various other sources.
Dealer auctions require a license because of the vehicles being sold at wholesale prices with exclusive access to dealers. However, there are occasions where online platforms allow public access to these exclusive auctions. It is also possible for public buyers to buy an auction car online at a free public car auction.
Illinois Public Auto Auction Fees Calculator
How a Car Auction in Illinois Works
Auctions often enable you to attend in person or online and each vehicle is typically assigned a number and displayed in a catalog, giving a brief description. Cars for sale at Illinois auctions come from local car dealerships, banks, private owners, wrecked cars, donation vehicles, police auctions, and more.
Online auctions can make it easier to find what you’re looking for, as you can select your search parameters. You will also be able to set a maximum budget to bid so the bidding can go on without you automatically.
If attending in person, you’ll want to find the list of vehicles that will be auctioned off and note the corresponding numbers. You’ll also want to inspect each car before bidding on it. The cars are usually lined up in the order they will be sold in, so you can take your time walking around and inspecting them.
When the auction begins, the first car will be driven onto the auction area and its number will be called out. The auctioneer will then start the bidding at a predetermined price. People will then be able to bid on the car and if they are the highest bidder, the car is theirs to take away once payment is taken and documentation exchanged.
What I Suggest You Do Before You Attend a Car Auction
Alright, so you’re thinking about hitting up a public car auction in Illinois? Smart move. But before you jump in, let me give you a few tips from a guy who’s been there and done that.
First things first, get the schedule down cold. Know when and where to show up, how to grab your bidder card, and what extra fees they tack on if you win. Trust me, showing up clueless is a recipe for stress and missed opportunities. You might even miss the whole thing!
Check out the auction listings beforehand and see what catches your eye. Jot down the good ones so you don’t forget when you’re there. Even better, head over to the preview day if they have one.
You can kick the tires and get a real feel for the cars before the bidding starts. Also, don’t forget to run a background check on any car you’re serious about. They might try to pretty them up, but a little history check can save you a lot of headache.
Now, auctions can get your blood pumping, but don’t get carried away. Set a budget before you walk in, and stick to it. Remember, those auction fees can add up, so factor them in when you’re figuring out your max bid.
Fees at public car auctions are reasonable, but they are almost always higher than the ones at dealer auto auctions.
One time, I saw this guy at an auction, totally green. He got caught up in the excitement and ended up bidding way over his budget on a truck.
Turns out, the thing had a few leaks and a bunch of hidden problems. He learned his lesson the hard way, but you don’t have to.
How to Bid in a Public Car Auction in Illinois
Plan on arriving early. You’ll need to register for a bidder’s card and put down a deposit, which is typically $100 or $500. When you win the bid on a car, your deposit will go toward the car’s purchase price; if you don’t win the bid, you’ll get your deposit back when you return your bidder’s card.
Once you have done the admin, you will most likely want to inspect the auctions cars you are interested in before you decide to bid on it. The auctioneer will usually allow time for this before the bidding starts. Once the bidding starts, it’s important to pay attention to the other bidders and try to gauge how much they’re willing to pay.
The auctioneer will announce each car as it comes up for sale, and will usually give some information about the car, such as its make, model, and year. To start bidding, raise your bidder’s card high in the air when the auctioneer points to you and states the opening bid price.
If no one responds to the opening bid, he’ll keep lowering the price until someone does respond by raising their card again or giving him a nod of approval. If someone else outbids you and you want to keep going, simply raise your card again or nod your head once more.
Remember that all bids are binding; if you’re the highest bidder when the auction ends, you’ve just purchased a car.
You will then need to pay and fill out the required paperwork. You will also need to arrange to get the vehicle home or arrange insurance to be able to drive the vehicle home yourself.
Below are the most commonly asked questions I get from people that are new to public auto auctions. First of all – do not worry about the bidding process because each location’s staff will happily help you and answer any additional questions you may have.
Public auctions are designed to cater to inexperienced bidders – so do not be intimidated by the process. It is very easy and also a lot of fun to watch.
FAQ: Buying a Used Car at a Wholesale Auto Auction
What do I need to bring with me to buy a car at auction?
All you need to bring is a current driver’s license so that the auction can process the title of the car into your name. You are responsible for obtaining insurance on the vehicle before taking it from the auction.
What forms of payment are accepted at the car auctions?
This varies by location but most will accept cash or major credit cards. Checks are typically not accepted, and it they are, you may be required to leave the car at the auction until your check has cleared the bank.
Where do the auction cars come from? Are they salvage or have flood damage?
Public auctions in Chicago and around Illinois do not sell flood damaged or salvage vehicles. You can always use your smartphone to run an online check of the VIN (Vehicle Identification Number) of the car you are interested in. These reports will tell you the history of the car.
A large portion of vehicles are either bank repos or trade-ins from local used car dealers around Illinois.
Is bidding during the auction the only way to buy a car?
Some locations will allow you to make an offer and buy a car from the lot without having to bid in the auction. If this interests you, be sure to contact the auction first to verify their policies on this.
View List of Auction Locations in Illinois
VIDEO: Get a Great Deal on a Used Car at a Repo Auction
I made this video here to just give you a quick rundown on the top 5 mistakes that I often see public bidders make at car auctions.
Find a great deal on the cheapest used cars in Illinois at a wholesale used car auction. Auto auctions feature bargains on bank repos, tow impounds, dealer trades, and much more.
I also offer my own insider tips and advice from my decades of experience bidding in car auctions in Illinois and the rest of the United States.
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