Why Do Cars Go To Auction? (9 Reasons Why)

One of the main reasons people love to buy cars at auctions is because they’re a great way to find one that they can afford and has a lot of potential.

You may have thought of auctions as a way to sell your junk car, but there are many other ways to make money with the vehicle! So here’s what I’m going to say about why people are interested in car auctions!

Why Do Cars Go To Auction?

1. Passion And Collection For Cars

Car collectors love their cars but also have other life interests. When people have a lot of vehicles, it’s hard for them to decide which one to keep and which to sell.

As well as that, cars are just one part of who they are as people, and sometimes they need to make room for other things.

By doing so, to make space on their shelves, car collectors will sell their cars at auction.

That is why car auctions are so popular—they’re a way for people to sell their collection of vehicles while simultaneously making money!

2. Insurance Company Has “Totaled” A Car

When a car hits an accident, the insurance company pays for the damages and repairs.

In the event of a car accident and your vehicle is totaled (also known as a total loss), it indicates that it cannot be repaired or that the cost of repairs exceeds the value of the vehicle.

That is why the insurance company will want to sell off all or most of the parts of the vehicle so that they can pay off the claim.

Read More:  Why Is City Driving More Difficult? (9 Reasons Why)

Therefore, if you have purchased a car and an insurance company has totaled it, you may want to consider selling it at an auction instead!

3. Reselling For Profit

Selling cars for profit is not always easy, but auctions help you find buyers who will pay top dollar for your vehicle.

In most cases, when a car is bought at an auction, it has been deemed unprofitable by its owner.

Often, this decision comes from financial difficulties—the car owner may have fallen on hard times and can’t afford to keep the car anymore.

Overall, cars are brought to bidding because an excellent idea to sell them is a way for money back on your investment!

4. Have Been Impounded

When a car is impounded, it is taken off the road by the police department and stored. Thus, the owner can reclaim their vehicle by paying the impound fee.

In some cases, this can be for parking tickets or other minor violations, but frequently, it’s because of accidents or criminal acts.

As most people know, finding impounded cars at auction is one of the most acceptable ways to significantly reduce the cost of your next vehicle.

However, if these violators don’t pay their fees, they will be confiscated by law enforcement and sold at dealership auctions!

5. A Car Can’t be Saved

Cars are a significant investment, and when you’ve got one worth a lot of money, it makes sense to hold onto it until you can sell it for the highest possible price.

But sometimes, a car can’t be saved. Maybe it has too many dents or rust spots to be fixed up. Perhaps the engine is damaged beyond repair.

Read More:  Windshield Wipers Not Turning Off? (7 Reasons Why)

In addition, it can be caused by flooded incidents, and the damage is severe.

Whatever the reason, there are times when a car has to be handed over to auctions before someone else gets hurt by its owner’s negligence!

6. Great Way To Get A Good Deal

Great Way To Get A Good Deal

There are so many cars for sale at auctions that you can find the perfect vehicle for your needs and budget.

Furthermore, if you have been looking for a particular model but have not been able to find it on the market, then going to an auction could be just what you need.

The only downside? You may have to go through several dealerships before finding the right one.

Above all, cars go to auction because they are a great way to get a good deal. You can find exactly what you want and get it cheaply!

7. Cars Lose Their Value Over Time

A car is a depreciating asset, meaning it loses its value as soon as you buy it.

In other words, the older a car gets, the price of cars goes down over time.

Because of that, the longer a car has been driven before being sold, the less money you can expect to get for it at an auction.

Consequently, cars at auction are less sought-after and less desired by people, causing the vehicles at a low resale value!

8. Upgrades And Improvements

Auctions are a great place to find used cars with upgraded interiors and other upgrades that can be purchased for less.

In the past, trading cars among owners eventually became difficult as cars became more complicated and expensive.

Read More:  Why Does My Car Hesitate When I Accelerate? (9 Reasons Why)

As a result, many people began looking for upgrades and improvements for their cars that would make them worth much more money.

This is why if you’re looking to upgrade your car’s interior, it might make sense to buy it at auction instead!

9. Wants To Get Rid Of Their Car

First, they might not like the look of it anymore and want to sell it to someone else who will appreciate it more than they did.

Second, they might have an old car that is no longer worth the money it would cost to repair.

Third, they might have inherited a car and don’t want to keep paying for insurance and maintenance.

Generally, most people come across them at auctions because they want to move on with their lives and don’t have the money to keep cars anymore!

To know more, you can also read our posts on why Kia cars are so cheap, why Michigan roads are so bad, and why people lower their cars.


Oftentimes, it’s cheaper to buy used cars from auctions than from dealerships or private sellers.

As demonstrated, cars are handed over to auctions due to the need to make room for their car collection and an objective for profit resale.

Ultimately, if you’re looking for value in your next purchase, this should be one of the considerations!

Leave a Comment