More and more people are buying used cars at auctions today. Buying a used car at auction is often seen as an attractive alternative because it offers several advantages over buying from a used-car marketplace or dealership. Auctioned cars are more affordable and varied; all are offered through an easy and fast auction process.

One of the most popular auction houses for buying used cars is IBID. At IBID, you can join an online auction simply through the website or the app.

Even though the auction process has now been more practical and modernized, some myths persist at auction houses. For example, one myth holds that used cars at auctions are problematic or involve illegal activity.

This is obviously not true. Now, let’s deep-dive into several persistent myths surrounding used-car auctions, along with the facts.

8 Myths About Used Car Auctions

1. The cars were seized by the authorities

Many people are hesitant to bid in auctions because they worry that the cars were once seized or confiscated by the authorities. It should be noted that private auction houses auctioned only cars previously owned by individuals or businesses.

Cars seized by the authority can only be auctioned by the relevant authority. Furthermore, private auction houses must verify the ownership of the cars before the auction to facilitate title transfer to the winning bidder.

2. Most cars are repossessed

A widely held myth is that auction houses only sell repossessed cars. In reality, auction houses offer a great selection of used cars previously owned by individuals and businesses, including car rental companies, insurance companies, logistics companies, and dealers.

That’s why you’ll find various types of cars, including family cars, light commercial cars, pickup trucks, and salvage cars.

3. The cars were involved in incidents

Used cars may not be free from incidents, such as road accidents or flooding, but that’s not always the case.

Still, many people associate their used state with such incidents. Furthermore, auction houses will often include a vehicle inspection report that objectively describes the car’s actual condition.

Any indications of flooding or road accidents will be included in the inspection report that all auction participants can access.

4. Auctions are not for first-time buyers

There’s a myth that used car auctions are only for those experienced in automotive matters. This is not true. Car auctions are open to the public at every level of experience.

Even if you’re still new to automotive matters, you can still participate in an auction as long as you pay a deposit. With this deposit, you officially register for the auction and can bid.

5. You cannot check the cars beforehand

While inspection reports for the auctioned cars are available, participants are still encouraged to attend the viewing events to examine the cars before bidding.

While a test drive may not be allowed, you can start the engine and look at the car’s indicators to assess its condition. So, the idea that auction participants cannot check the car is just a myth.

6. Dealers always win the auctions

You must have often heard that dealers who participate in car auctions always win. This is just a myth. After all, participants win auctions by making the highest bid, regardless of who they are. So, anyone can win.

7. You cannot insure used cars

There is a misconception that used cars purchased at auctions cannot be insured. The truth is, used cars can still be insured as long as they meet the requirements for insurability. These include the cars’ age and condition.

8. Auction deposits are non-refundable

Auction participants must pay a deposit to participate. Unfortunately, there is still a misconception that all auction deposits are non-refundable. But it all depends on whether the participants win or lose the auctions.

For losing bidders, the deposit will be refunded to the registered account with no deductions after the auction. For winning bidders, the deposit will be deducted from the total cost due.

Those are several myths about used cars that still linger at auction houses. Myths aside, you can buy a used car at a trusted auction house like IBID to ensure a secure process, vehicle documents, and payment.

IBID is a business line of PT Serasi Autoraya (SERA) and specializes in auctions for vehicles, heavy equipment, electronics, and lifestyle products. Known for its professionalism and reliability, IBID also offers a simple, hassle-free auction process.

As an auction house, IBID continues to innovate, create new opportunities, and provide the best service to consignors and bidders.

Today, IBID’s auction categories are more diverse, including property. Whether you’re a seller or buyer, you can feel more secure and confident.

Download the IBID app from the Play Store and App Store. Don’t forget to follow IBID’s official social media on Instagram @ibid_balailelangserasi for the latest auction updates and useful tips.