If you’re new to the auto auction industry and you either want to make money or you simply want to buy a used car for a good price, you’ve come to the right place.  I’m going to show you a few ways on how you can make money at an auto auction.  I’m not saying you’re going to be a millionaire overnight but you can make enough money at it if you’re good at it.

Know what the cars are worth – When you’re at an auction, you have to know what a car is worth.  Most people that bid will use the KBB (Kelley Blue Book).  The KBB will be able to give you a fair market value based on the make, model, what condition it’s in, etc.  You’re not going to probably sell it for this price but you can get fairly close to it.

Know your market – It’s hard to tell you how to make money in one post but I highly recommend you read about the industry.  Read until you know the market on the back of your hand.  Know what sells, when it sells, who your market is, etc.  If you can do research daily, you’re only going to increase your odds of selling the cars for a great price.

Know what is selling – You have to know what is selling before you buy a car.  You won’t want to buy a car and find that you have to sit on it for 8 months before you can sell it.  Check out your local dealerships or see what is in demand simply by checking classifieds.  If there’s a high demand, there won’t be many cars listed in the paper.

Know your auctions – Depending on where you live, you’re going to find that there are many auctions in your area.  Before you go to the auction though, you’re going to have to understand who can come.  Some auctions are for “dealers only” and others may be for the public.  You won’t want to show up and find out that you can come in.

Know the viewing time – When you plan on attending an auction, make sure you show up early so that you can check out the car.  Learn everything about the cars you’re interested in.  You’ll want to get the make, model, how many miles, etc.  You’ll need this information so that you can get a fair value.   It’s always important to never overbid the KBB value because I can almost guarantee you won’t make a nice return on it.

Know how to bid – People can get competitive when it comes to bidding and don’t let the fool you.  If the car you’re bidding on is worth $10,000, let’s say you can sell it at $8,500.  You won’t want to bid more than $7,000-$7,500.  You’ll find that some people are going to go above and beyond that.  When you’re bidding, don’t let competitiveness get to you.  Instead, you’re going to want to bid what you can afford and make money on.

As long as your know your market and what you can sell a car at, you’re going to be able to make money.  Never overbid and make sure you’re not holding inventory.  An auto auction is mainly for experts.  It never hurts to walk in and watch one for fun but if you’re willing to learn, I would suggest like anything that you sit back and learn.  Over time, you’ll get a grasp on it and hopefully you can start making money to live off of.