Whether for the emotion of the dispute, for the opportunity or the need to buy a cheaper car, many Brazilians are starting to look fondly at vehicle auctions.

Public bodies, banks and insurance companies are among the main suppliers of vehicles for auctions, and the rules and prices can vary greatly from auction to auction.

However, as in any type of business, knowledge and patience are needed so that a good opportunity does not end up becoming a headache later on.

Many people have bought auction cars without paying attention to details that they should have, and with that ended up getting a bad deal.

That's why it's important to understand what an auction is and how it works.

The auction is not a new practice, but rather an old one.

It is a modality of buying and selling objects that has been gaining more and more followers, due to the advantages it has, when compared to other modality of buying and selling.

First, we need to understand that the auction is a public sale, open to anyone interested in participating in the negotiation.

Among the products that can be bought or sold at an auction, there are very expensive goods such as mansions or rare works of art, as well as cheaper goods such as furniture, appliances and electronics.

Typically, the process is handled by a professional auctioneer, someone who receives the goods from the seller to conduct the process properly.

Auctions can sell goods individually, such as a car, or lots of different items, such as a set of cell phones, for example.

In short, the auction is a way of carrying out a public sale that allows the participation of a large number of interested parties in the business.

The foundation of an auction is the definition of a minimum value for the good or set of goods that is being submitted to that auction process.

The buyer who makes the highest bid above the initially defined value wins the auction.

The auction can happen in two ways:

The face-to-face auction works with a place, date and time where those interested in buying the items must attend in order to place their bids.

In the online auction, the dynamics are much simpler. The auction site or system will show the lots being auctioned along with bids from other bidders.

The system shows the current bids and usually has a countdown mechanism in order to speed up the process.

In the case of internet auctions, it is necessary to register on the auctioneer's or company's website. This registration must be done prior to the day of bidding.

Summarizing the process of an auction happens as follows:

If you followed all the previous tips and chose to bid for the vehicle, you need to be sure you got a good deal on that purchase.

While there's no rule of thumb for knowing if a vehicle has sold for a good value, experts say that a car sold for around 35% off is a good buy.

It should be noted that the final value of the bid will still be increased by repairs, taxes and documentation, as mentioned above.

So, gather all the information, do the calculations and hope your bid is the highest.