What is a car auction?

Selling your car at auction can be a fast, effective way to turn your vehicle into cash.
Once reserved mainly for trade buyers, car auctions have evolved to welcome private sellers like you, so anyone can compete for the best price, both online and in person. However, navigating the auction process can feel overwhelming for first-timers. That’s why we’ve created this comprehensive guide, covering everything from how auctions work and what fees to expect, to maximizing your vehicle's appeal and ensuring it reaches the right audience. With options like Auto Trader’s online auction platform, selling your car has never been easier - just upload your details and photos, and dealers across the UK will bid to buy it. Read on to find out if auctioning is the right path for selling your car, and how to make the most of it.

Auctioning your car through Auto Trader’s auction platform offers a quick, convenient and no-cost way to reach a wide audience of vetted dealers and bag yourself a competitive offer.
Here’s how it works and why it may be the best choice for you: 1. You’re reaching a wide dealer network: Auto Trader’s auction service, in partnership with Dealer Auction, connects your car with over 5,000 approved dealers across the UK. These dealers are pre-screened for reliability, so you can trust the offers you receive. 2. No cost, no obligation: The auction service is completely free, and you’re not required to sell unless you’re satisfied with the final bid. 3. We’ll save you time by handling the work for you: Instead of managing adverts, inquiries, and viewings yourself, our team of experts will handle the entire auction process for you, from collecting bids to finalising the sale. This cuts the hassle of fielding calls and messages, and means there’s no bartering with people on your driveway 4. You’ll get paid within a day or two: Auctions are held daily, and in as little as two working days, you can see offers from multiple dealers, getting cash quickly if you accept the winning bid. 5. You won’t have to guess at the car’s worth: To help set your reserve price, we’ll give you initial guidance based on real-time market data, so you can enter the auction with a realistic understanding of your car’s value. 6. We’ll collect the car from you: If you choose to sell, we’ll arrange to collect your vehicle, so you don’t have to drop it off and arrange a lift back. It’s easy.

We’ve built a modern, streamlined online auction experience, where you don’t have to visit an auction house. Here’s how it works with us:
1. Start with a free valuation: Using your car’s registration and mileage, Auto Trader provides a valuation based on market data. This eliminates the need to bring your car in for inspection. 2. Create a car profile: Answer some simple questions about the car to give auction buyers the info they need to move fast. We’ll guide you through it, from taking your photos to finishing your profile ready for auction. 3. Let the bidding begin: Auto Trader’s dealer network, made up of over 5,000 verified dealers, receives notifications about new listings. Dealers compete against each other by placing bids, and you won’t need to handle negotiations directly. 4. There’s no obligation to sell at the end: After the auction, we’ll tell you about your highest bid and you can decide whether you want to accept or not. It’s your car, so we’re not locking you into a sale. 5. Arrange your free collection and payment: Once a sale is confirmed, the winning dealer will collect the car directly from you at no extra cost. The dealer will inspect the car and pay you via secure bank transfer, and that’s that! You’re free to buy your next car with the cash.

Car auctions have been around for a while. Some take place solely online, while others are conducted in person at auction houses. Online auctions have grown in popularity, since they can reach a broader audience with remote participation.
In traditional car auctions, each vehicle has a starting price or a reserve price, which is the minimum amount you would be willing to accept as a seller. Bidders, either in-person or online, compete by placing increasingly higher bids on the vehicles they are interested in. The car is sold to the highest bidder if the final bid meets or exceeds the reserve price. If a vehicle is unsold, sellers may have the option to negotiate further. Once a car is won, the buyer arranges payment and organises pickup or delivery of the vehicle.

If you fancy selling your car at a traditional auction, here’s what to expect:
1. Contact the auction house: They’ll check your car meets their requirements, then ask you to bring it in for a valuation. In that valuation, they’ll inspect and photograph it. If the auction house declines to sell your car, you may need to take it back, which can be time-consuming and costly. 2. Enter your car into the auction: On auction day, buyers place bids by raising their hands in response to the prices being called out. The bids are legally binding, so buyers must follow through if they make the highest offer. But you have the option to refuse those offers if the bids don’t reach your reserve price. Some sellers may end up negotiating to find a compromise, as auction houses typically prefer not to store unsold cars. 3. Wait for payment: Once your car is sold, the auction house manages the paperwork, including transfer documents like the V5C (vehicle registration document) and any service history records. Since the auction house serves as a middleman, payment can sometimes take longer than anticipated.

Selling a car at a traditional auction often involves fees. Sellers usually pay an administration fee to list their car, which can start from £15 to more significant amounts, depending on the auction house.
Some auction houses also charge a commission on the sale price, plus storage fees if the car remains on-site, or re-listing fees if the car doesn’t sell on the first try. Make sure you ask about the total potential costs and read the terms and conditions before you commit. And remember, it’s free to auction your car on Auto Trader.

If you’re considering buying a car at auction, here’s how the process works:
• Register and prepare: Register as a bidder with your chosen auction house, whether that’s online or in person, and review their catalogue of cars in advance. Research models you’re interested in and set a budget to help guide your bidding. • Inspect the vehicle: If it’s a physical auction, arrive early to inspect the cars on-site, as most are sold “as-is” without guarantees. For online auctions, carefully review photos and descriptions provided by the seller. If you have any doubts, walk away. • Place your bid: On auction day, place bids by raising your hand (in person) or clicking to bid (online). Bids are legally binding, so bid only if you’re confident about your offer. If yours is the highest bid, you win the car. • Arrange payment and paperwork: The auction house will get in touch to arrange payment for your vehicle. You’ll also have to sort the paperwork, including tax and insurance, and delivery or collection of your vehicle.

1. You could find a real bargain: Auctions often offer vehicles at lower prices than traditional retail, as cars are sold “as-is” and without dealership markup.
2. There can be a great range of choice: All sorts can appear on auction, from affordable used cars to rare and collectible models. 3. Quick transactions are common: An auction is often efficient for both buyers and sellers, with same-day or next-day sales. 4. Access to unique vehicles: For enthusiasts, auctions can be a treasure trove of unique or vintage cars not readily available through traditional dealerships.

1. There are risks to buying “as-is”: Cars can be sold at auction without warranties, meaning buyers take on the risk of any necessary repairs or unforeseen issues.
2. You’ll only get limited inspection time: Auctions often allow only brief inspections, so you may not have enough time to fully assess a car’s condition. 3. There’s often high competition for desirable models: Rare or in-demand cars may attract many bidders, which can drive up prices significantly. 4. You might have to pay additional fees: Auction houses generally charge fees for both buyers and sellers, increasing the total cost. Make sure you check, and can afford it all, before you start.

Have a go at auctioning your car to dealerships. We’ll give you an estimate of how much your car could be worth to a buyer, then we’ll hand you over to our online partner Dealer Auction to let the bidding begin!
It’s completely free to auction your car, and if you don’t get an offer you’re happy with, you’re free to walk away. Auction your car to dealerships.