A subject that generates fear in some and profit for others, vehicle auctions are still very poorly seen by most Brazilians. So, is it really worth buying an auction car?

If buying a new car has been an increasingly unattainable challenge for most Brazilians, buying a car at auction has been an increasingly attractive option for some.

In addition to cars for private use, many people end up investing a lot of money in auctions, buying and reselling vehicles, thus seeking to achieve a considerable profit with these transactions.

On the other hand, public bodies and entities that auction vehicles are actually getting rid of a problem and a cost, given that these vehicles remain on their premises without being able to be used.

We need to better understand which bodies and entities carry out this type of auction.

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:

Auctions can be promoted by different types of bodies and companies, whether public or private. Are they:

Certainly the first advantage of an auction car is the PRICE. Normally, the body that is auctioning the vehicle does not expect to make a profit from it, only to recover some value on the good.

This means that the prices of vehicles from auctions can reach 50% less than the same vehicle in stores.

Another advantage of an auction vehicle can be its CONSERVATION. Many bodies and companies exchange their vehicles for new ones with 40,000 or 60,000 km run, which still keeps the cars in excellent condition.

The last advantage of buying an auction vehicle is NOT INCREASING DEBT. As most auctions require cash payment, the bidder becomes the vehicle owner without having to pay financing interest or have a long debt.

Finally, it is worth analyzing carefully on a case-by-case basis and buying if you perceive it to be a good opportunity.