What is online auction?

Sniping – the act of placing a bid just before the end of a timed auction, thus giving other bidders no time to enter new bids.

Specialist - on-staff trained professionals who put together the auction[65]

The "three Ds" death, divorce, or debt - sometimes a reason for an item to be sold at an auction[65]

Vendor bid - a bid by the person selling the item. The bid is sometimes a dummy bid (see definition) but not always.

White Glove Sale - an auction in which every single lot is sold[65]

Parking lot at HAA Kobe
Auto auctions are the most popular method to sell used vehicles in Japan. Most customers are Japanese seeking a cheap

vehicle to start with or replace their older vehicle. There are many also trying to sell their vehicles. Individuals though cannot

directly use auto auctions, but must go through those holding auction membership. In Japanese law, only dealerships ma

become members to auto auctions. The way the system is set up allows people to have access to information, but keep the

auctions orderly with only professionals actually able to bid.

A small percentage of the dealers that are members of Japanese auto auctions are also used vehicle exporters that most ofte

use the auto auctions as their primary source of used vehicles. Other than these exporters, most members are used vehicle

dealership that sell in Japan and are used by Japanese people to find a car they want.

In Japan there are over 30 well known auto auction groups and over 200 auto auction locations throughout Japan.[1]

Additionally, there are more smaller auctions held for specialized items. Furthermore, large numbers of cars in Japan are auctioned online, using various types of

auction software. Auction inspection sheets allow buyers and inspectors to evaluate the worth of a car over such systems.[2]

In the United States, auto auctions play a major role as a wholesale market for second-hand vehicles. Most states only allow closed auctions, meaning only dealers can

use them.[3] There are also auctions that are open to the public in a few states like New Hampshire. These auctions are a primary outlet for financial services firms to

dispose of their large volume of off-lease returns, for rental and other companies to sell off their aging fleets and for car dealerships to dump trade-ins or other

unwanted inventory. Some auctions in the United States are used by banks, the IRS, and other government agencies to sell vehicles that were repossessed for failure

to make monthly payments or pay taxes, or were seized by the FBI, DEA, or the police. Also, there are some that sell US Government vehicles. Finally, there are those

catering to the salvage market where insurance companies sell totaled vehicles.

Online auto auctions are also growing in popularity. One of the most popular online auctions to buy cars from is eBay.com. On eBay Motors, any user can create an

account and put their vehicle(s) up for auction even if they are from a state that only allows closed auctions. There is usually a fee associated with selling a vehicle on

eBay.[4] Many buyers prefer to look for local car sellers on eBay, within a certain radius so that they can go and do a manual inspection of the vehicle.[5]