The best protection a customer has in this day and age is the culture of customer service that has developed over the last several decades. But leave all these concepts at the door of the auction house – these are rough and tumble affairs, some literally. Even a top end, air conditioned auction house has a sense of Darwinian determination. It’s every man for himself, and only the strong – or the crafty – will do well. Mere mortals are going to be left behind, so if that’s not the environment for you, don’t go.
Most auction houses work behind the shield of “As Is,” – it’s a ploy that they’ve used for years, and used successfully. There are some auctions that offer some guarantee on the engine and frame and the like, but even if you can find a seller who offers a guarantee or warranty, you’ll still have to pay a fee. Winning bids are final and, barring fraud with the title, final bids are binding. A seller can make any verbal promise they want, and it’s completely unenforceable. It’s your word against theirs, and they will win, so you’ll need to use your instincts. If you have a bad feeling, be ready to walk away.
The first thing you need to know is how the auction house deals with a title. It’s your responsibility to see that there’s a clean title on the car you’re bidding on. Many auction houses do only a basic title check; while some do no title check at all. Therefore, the best bet is to run your own. There are several online companies who will do the title check for you for a small fee. Remember that even the most reputable auction in the world still has a vested interest in selling the car – regardless of what title issues may exist. 
You can avoid some title issues by choosing a municipal auction – one where government owned and operated cars are sold. Your choices will be more limited, and the cars will be very utilitarian. But if you need basic transportation, and don’t want to deal with title hassles, a county or state auction can be a good choice.
Whatever type of auction you plan to attend, ask about all of the details in advance. There’s a thing called the buyer’s premium, which is the added fee the house takes on the sale. Sometimes it’s very reasonable – only a few hundred dollars – and sometimes it’s five or ten percent of the car’s selling price. Know the auction house’s policy before the opening bid, or a bidding war may push the cost of that car over the fair market value. Also, you need to know what kind of fees will be added to your bid so that you don’t overbid the amount of money you have set aside for your purchase.
There are some other peculiarities associated with auto auctions. For example, you may have to take ownership of the car immediately, as in “get this off the lot now, or you no longer own the car.” This could be a problem if you bought a fixer-upper and didn’t come to the auction with a flat bed tow truck to haul the car away.
So given this long list of problems, why do people still buy cars at auctions? In a word, savings. You can get a used car in great condition, well under list price, if you’re ready to play by these rules.
