Learn how to convert your car into hard cash with our guide.
Whether you wish to sell a hatchback, saloon, SUV, or classic vehicle, car auctions are an effective way to turn your wheels into hard cash.
No longer the preserve of second-hand car businesses, car auctions (online and physical) are now often used by general members of the public - so you should have a large pool of potential buyers.
Here we explore how to sell a car at auction.
There are two main types of car auction:
- Physical live auction - where people gather to bid on cars at an auction house and where online bids are accepted during the bidding process.
- Online auction - this involves cars being auctioned off online only - there is no actual gathering of people.
Physical car auction
The first step in selling your car at a physical live auction is to find a reputable auction house and then send them images of your vehicle.
Tell them the car's make, model, year of production, condition and any other key information.
Auction price for cars: How much will I get?
The auction house will tell you roughly how much you can expect to get for it. You can also research how much cars like yours are going for online - either for a fixed asking price, or a ‘Completed Listing’ on eBay (more on this in the online car auctions section below).
Car auction reserve price
You will be able to set a reserve price. If the bids don’t reach or surpass this figure, the car won’t be sold. However, the auction house may help the two parties come to an agreement on the price later.
However, if there are no bidders at all, the car won’t be sold.
You might consider re-listing the car for auction at a later date or selling it privately.
Do I have to pay car auction fees if my car doesn’t sell?
Yes, you'll need to pay an upfront fee to list the car and this won’t be refunded if your vehicle doesn’t sell.
Delivering your car to auction
You can then take your car to the auction house. Alternatively, the auction house will arrange transport for a fee.
Prepare your vehicle for sale
Ensure your car is clean inside and out. Consider getting it valeted. The auction house will provide this service if required (for a fee).
If you can, replace things like old carpets, since this can improve the look of your vehicle.
Ensure you have to hand:
- MOT (if it’s about to expire, consider getting a new one early)
- Service record
- Up-to-date V5C logbook
Note that you are legally permitted to sell a car at auction (or privately) without a V5C, but it is well worth the cost of getting a replacement (since it may help increase trust and boost the price).
Some auction houses arrange for an independent service to check the car over.
Car categorisations
Your car will be categorised as follows:
- ‘No major mechanical faults’ - Engine, suspension, drivetrain and gearbox should all be working sufficiently.
- ‘Specified faults’ - Some things are wrong with the car and these will be published and mentioned during bidding.
- ‘Sold as seen’ - Your car will be sold with any faults it may have and the buyer has little recourse if they later discover issues with the vehicle they find unacceptable.
- ‘Sold with a warranted mileage’ - The mileage has been verified by an independent organisation and will be sold on that basis.
These terms will be stated verbally just before bidding opens. Bidding will normally take place in increments of 100 or 200 GBP.
Images published ahead of the auction
The auction house will publish images of your car online in a catalogue some days in advance of the bidding. People will be able to look at the car in person for a period before the auction takes place - usually from the day before or on the day of the auction itself.
Some auction houses also film a video of the car to help would-be buyers understand what's on offer. This may include starting up the engine.
Ensure the images you provide are accurate and include snaps of any damaged areas. This will preclude any complaints from buyers later, which could cause a lot of stress.
The day of the auction
This is the tense and exciting bit. Your car is driven into the auction area, and bidding commences - both in person and online. The person or entity offering the highest bid 'wins' the vehicle.
How can I sell my car at auction online?
As the name suggests, online auctions take place online. This means the bidding process is done electronically, with people bidding over the Internet.
Unlike with physical car auctions, there may be no frantic final few moments when the price rises quickly.
Be accurate
As with physical car auctions, it pays to have lots of high-quality photos, including ones of any damage or areas that are in a poor state of repair. This will save hassle later.
Online auction price for cars: How much will I get?
Take some time to research cars like the one you are selling. With eBay Motors, for example, you can use the 'Completed Listing' function to see how much similar cars sold for.
Can a car be viewed in person before bidding?
Yes, it's nearly always possible for potential buyers to look at a car before bidding. This includes online auction specialists and portals like eBay Motors.
If you’re selling through eBay Motors or a similar service, provide contact details so that a viewing can be arranged.
Aim to be flexible so you get as many viewings as possible.
A key advantage of selling online rather than through an auction house is that buyers can test drive the vehicle, which could help make the sale or raise the final price.
Credit: gmstockstudio - stock.adobe.com
Pick a sensible end time for your car action
You'll probably get a higher price if your listing ends at a time when people are online. For example, Sunday evening is a good choice - although many other car auctions will end during this period. Weekday lunchtime also sees more potential buyers online.
Don’t list your vehicle at 3 am, since it will end at the same time a week later.
You'll probably get a number of low bids early on. Hopefully, the price will rise dramatically in the final hours and minutes of the listing.
How do I receive payment?
This will depend on the service being used. Fees due may be deducted from the sum you receive, or invoiced later if you receive payment directly from the buyer.
If your car doesn't sell, you'll probably be liable for some minimal listing fees.
How does the buyer receive the car?
In most cases, the buyer will come and collect the vehicle or arrange transport for it.
Interested in buying a car at auction? Read our guide to buying a car at auction.
