Auto Auctions in 2025: How Online Car Auctions Work (Dealer & Public Guide)

Introduction

In 2025, auto auctions have become one of the most efficient and cost-effective ways to buy and sell vehicles in the United States. Both licensed dealers and everyday buyers now rely on online auction platforms to access thousands of vehicles daily — often at prices far below traditional retail.

From public marketplaces like Copart and IAAI to dealer-only platforms such as Manheim and ADESA, auto auctions offer unmatched variety, transparency, and nationwide access.

In this guide, you’ll learn how auto auctions work, how to bid safely, and how to ship your auction vehicle nationwide with FastCarShip.

What Is an Auto Auction?

An auto auction is a competitive marketplace where vehicles are sold to the highest bidder. These vehicles typically come from:

• Dealership trade-ins
• Bank and lender repossessions
• Insurance companies (salvage or damaged vehicles)
• Government and fleet sales
• Private sellers

Auto auctions fall into two main categories:

• Public auctions (open to everyone)
• Dealer-only auctions (require a dealer license)

Types of Auto Auctions

1. Public Auto Auctions

Public auctions allow individuals to buy vehicles without a dealer license, making them ideal for private buyers, exporters, and first-time bidders.

Popular public platforms include:

• 🚘 Copart
• 🚗 IAAI (Insurance Auto Auctions)
• 🚙 AutoBidMaster
• 🚕 ACV Auctions (public listings)

2. Dealer-Only Auto Auctions

Dealer-only auctions are restricted to licensed auto dealers and usually feature newer vehicles, cleaner titles, and bulk inventory.

Well-known dealer auctions:

• Manheim
• ADESA
• ServNet

3. Online Auto Auctions

Online auctions have become the industry standard. Buyers can:

• Browse inventory nationwide
• Review vehicle photos and condition reports
• Bid live or set automatic bids
• Purchase vehicles remotely from anywhere in the U.S.

How Auto Auctions Work (Step-by-Step)

1. Register an Account
   Create an account on the auction platform. Some require ID verification and a refundable security deposit.
2. Search for Vehicles
   Filter by make, model, year, mileage, damage type, title status, or auction location.
3. Inspect Vehicle Information
   Carefully review photos, condition reports, VIN details, and title type (clean, salvage, rebuilt).
4. Place Your Bid
   Bid manually or set a maximum auto-bid limit.
5. Win and Pay
   If you win, payment is usually required within 1–2 business days.
6. Arrange Vehicle Transport
   After payment, schedule shipping with a trusted auto transport company like FastCarShip.

👉 Learn more about vehicle delivery options in our Car Shipping Guide.