Are Auction Cars Bad?

Posted Wednesday, Oct 25, 2023

When it comes to buying a car, many of us turn to the open market, where an array of options awaits us. However, the term "auction cars" might make some buyers apprehensive. What if we told you that auction cars aren't inherently bad? In this blog post, we'll shed light on the auction car world, dispelling myths and revealing the diverse landscape that auction cars encompass.


The World of Auction Cars:


Understanding Different Auction Types:

Auction cars can vary greatly depending on the type of auction they come from. The two primary categories are:


  1. Insurance/Salvage Auctions: These auctions feature vehicles that have been declared totaled by insurance companies due to accidents, theft, or other incidents. While these cars can be rebuilt, they might have a history of significant damage. They are often sold for parts, scrap, or to dealers that specialize in rebuilding the vehicle to make it road worthy again.
  2. Licensed Dealer Exclusive Auctions: This category includes a wide range of cars, from everyday vehicles to high-end exotic cars. These auctions serve as a marketplace for licensed dealers to acquire inventory. The cars in these auctions are often new car dealer trades or vehicles sold by wholesalers, making them a diverse and appealing option for used car dealerships.


Debunking Myths:


Myth 1: All Auction Cars Are Wrecked or Bad:

  • Reality: As mentioned, not all auction cars are salvaged. Many cars at licensed dealer exclusive auctions are well-maintained vehicles traded in by new car dealerships. These cars are typically in good condition, making them a reliable choice for buyers.


Myth 2: You Can't Trust Auction Car Histories:

  • Reality: Licensed dealer exclusive auctions maintain transparency in vehicle histories. Dealers can access valuable information about a car's past, including maintenance records and prior ownership.


Myth 3: Auction Cars Are Risky Purchases:

  • Reality: Just like any car purchase, due diligence is crucial when buying from an auction. Buyers can inspect vehicles, request detailed reports, and bid responsibly to minimize risks.


Benefits of Auction Cars:

  1. Variety: Auctions offer an extensive range of vehicles, from affordable options to luxury and exotic cars, making it easier to find a car that fits your budget and preferences.
  2. Competitive Pricing: Auctions often feature competitive pricing, potentially allowing buyers to secure a good deal.
  3. Dealer Oversight: Licensed dealers participate in these auctions, adding an extra layer of assurance regarding the quality and history of the vehicles.



Auction cars are not inherently bad; they represent a diverse world of possibilities. While insurance/salvage auctions have their place, the licensed dealer exclusive auctions offer a wide array of vehicles, from everyday cars to high-end exotics. The key to a successful purchase at an auction is research, diligence, and a clear understanding of the auction type. With these considerations in mind, auction cars can be a viable and exciting option for your next vehicle purchase.



Northeast Auto Exchange Plaistow NH

NEAX is a used car dealer in Plaistow NH, located on the border of Massachusetts and New Hampshire, serving all of New England and further. If you are in the market for a used vehicle, or need help financing a car, feel free to reach out to us for information! We are always happy to help anybody that is in the car buying journey and needs guidance or help getting in the right direction. The car buying process should be fun and we want to help you make sure that it is.