Car Auction Terms
From A to L

Auto Auction Terms -- Part 1 of 2 -- From A to L

Car Auction Terms Absolute Auction (Absolute Sale): An auction where every vehicle is sold to the highest bidder.

Absolute Low: The lowest price a seller is willing to sell their vehicle for at a wholesale auto auction.

Accident Data: As accidents happen, they are reported by police and other state agencies.

Arbitration: This is a service offered by the auto auctions to insure the interests of buyers and sellers are being represented.

Arena (Ring): The area where the auctioneer works and the vehicles are being sold.

As Is (Red Light): Each car auction will have different "As Is" requirements, but they will usually include vehicles at least 6 years old with over 100,000 miles or where the mileage on the odometer is suspect.

Assembled: A vehicle that was built from a kit and not assembled by a manufacturer.

Assignment: To transfer property or interest in property from one entity to another.

At-Risk Vehicles (Nonprogram Vehicles): Vehicles owned by a rental company that they sell at the end of their service. The term "At Risk" means that the rental company will bear the risk of what the vehicle will ultimately sell for.

Auction: A process where a vehicle is sold to the highest bidder at a car auction.

Auction Access (Dealer Registration): Some car auctions allow car dealers to pre-register.

Auction Agreement: A contract that spells out the terms of the sale between the car auction and the buyers and sellers.

Auction Announced as Broken Odometer: The car auction does this when the odometer of a vehicle is not working properly.

Auction Announced as Exceeds Mechanical Limits: When a vehicle has exceeded the limits (99,999) of what the odometer shows on a five digit odometer.

Auction Announced as Exempt: When the car auction announces that the vehicle is exempt from mandatory odometer laws.

Auction Announced as Fleet/Lease: When the car auction reports the vehicle as being a former Fleet or Leased vehicle.

Auction Announced as Flood Damage: The car auction has reported the vehicle to have been involved in some type of water damage.

Auction Announced as Frame Damage: The car auction has reported the vehicle as having frame damage.

Auction Announced as Grey Market: The car auction has reported the vehicle as being built in another country which means that it may or may not meet U.S. environmental and/or safety standards.

Auction Announced as Major Damage: The car auction has reported the vehicle as having major damage.

Auction Announced as Manufacturer Buyback/Lemon: The car auction has reported that the manufacturer of the vehicle has repurchased the vehicle because it may have mechanical problems.

Auction Announced as Municipal Use: The car auction has reported that the vehicle was used by a government agency.

Auction Announced as Not Actual Miles: The car auction has reported that the vehicle odometer reading is different than the actual miles.

Auction Announced as Odometer Rollback: The car auction has reported that the vehicles odometer has been adjusted or tampered with.

Auction Announced as Odometer Rollover: The car auction has reported that the vehicles odometer has exceeded the limits of a five digit odometer (99,999).

Auction Announced as Repaired/Replaced Odometer: The car auction has reported that the vehicles odometer has been repaired or replaced.

Auction Announced as Repossessed: The car auction has reported that the vehicle was repossessed by the lien holder.

Auction Announced as True Mileage Unknown: The car auction has reported that the vehicles actual mileage is unknown.

Auctioneer (Bid Caller): The person that manages the car auction at the time of sale.

Auction Guarantee: A guarantee that usually covers the engine, transmission and rear end.

Auction with Reserve (Reserve, Floor Price): The seller sets a minimum price on the vehicle and if the bidding does not meet or exceed that minimum then the vehicle will not be sold.

Bid: The amount that a potential buyer offers for the vehicle during the auction process.

Bidder Badge: This indicates that the buyers bidder number is registered for a specific auction.

Bidder Number: A number issued by the auto auction to qualified buyers for a specific auction.

Bill of Sale: A Bill Of Sale is provided by the seller and shows the selling price of the vehicle, the buyer and sellers names and the license and VIN numbers and the date of the sale.

Bond Released: When a bond required by a government agency has been returned.

Bonded: Vehicle required a bond to title or register it.

Black Book: A wholesale price guide.

Block: The area where the auto auction takes place for each lane.

Block Clerk: The human that records all the auction transactions for a given Block at an auto auction.

Block Ticket (Invoice): A paper document that shows the entire process a vehicle has gone through as it made its way through an auto auction.

Branded (Brands): The term a vehicle gets from the DMV that signifies the vehicles condition. Brands include: abandoned or stolen vehicles, fire, hail or flood damaged vehicles, totaled vehicles, vehicles with tampered odometers or the mileage has exceeded the limits of the odometer (99,999 miles), rebuilt vehicles, salvaged vehicles, lemon vehicles, junked vehicles.

Broken Odometer: The odometer does not work anymore (Duh!).

Buyers Fee: The fee paid to the auto auction house by the highest bidder for handling the sale of the vehicle.

Canadian Renewal: The Canadian DMV reports that the vehicle was registered.

Closed Auction (Closed Sale, Factory Sale): An auto auction limited to a select group of car dealers.

Commercial: A vehicle that was used in a business like a taxi, car rental or delivery vehicle.

Consignment: Vehicles that are handed over to a auto auction for sale.

Consignor: Anyone that brings a vehicle to a wholesale used automobile auction to sell it.

Corrected Title: The DMV has issued a corrected title.

Cross-Line Buying: Any car dealer that buys a different car than what they normally sell. For example a Porsche dealer buying a Honda for example.

DMV: Department Of Motor Vehicles. The state agency that handles vehicle registrations, titles and drivers licenses. Many states will use a different name.

Damaged: A vehicle with significant mechanical or body damage.

Damage Disclosure: A "Brand" issued by the DMV indicating that the seller disclosed that the vehicle was damaged.

Dealer (Car Dealer, Auto Dealer): An individual licensed by the state to buy and sell new or used vehicles.

Dealer Plates: License plates that are registered to a car dealer.

Dealer Registration: This is where licensed car dealers are registered for a used car auction.

Dealer Sale Representative: A person acting on the behalf of a dealer at a used automobile auction.

Depreciation: The value a vehicle drops as it ages.

Disabled Sale: An automobile auction that is selling vehicles that don't operate due to excessive wear and tear.

Dispose (Resale, Remarket): A titled vehicle that is offered for sale at a wholesale automobile auction.

Draft: A collection item drawn from one bank to another. The draft is signed by the buyer at an auction and then deposited into the auto auctions bank account. When the buyers bank has released the funds for the buyer then the auctions bank will give the title to the buyer.

Driver Education: A vehicle that was used to train humans how to drive.

Duplicate Title: The DMV issued a duplicate of the title because the original was lost.

Emission/Safety Inspection: The vehicle has been inspected by a state approved emission testing center.

Exceeds Mechanical Limits: The vehicles miles are higher than the odometer can record. Typical for any odometer that only goes to 99,999 miles or kilometers and then starts over.

Excluded (Exempt): A vehicle that is exempt from state odometer laws.

Factory Sale (Closed Sale, Closed Auction): A used automobile auction where the buyers are limited to a specific brand.

Failed Emission Inspection: Vehicle did not pass state smog/emission inspection.

Failed Safety Inspection: Vehicle did not pass state safety inspection.

Fair Market Value: What a vehicle should sell for based on the condition of the interior and exterior, mileage and mechanical condition.

Federal Government: A vehicle that was formally used by the United States federal government.

Fire Damage: A vehicle damaged from fire.

Fire Damage Incident: A fire damage incident was reported for this vehicle.

Fleet: Vehicle was operated as a fleet vehicle such as a police car, taxi, rental etc.

Floorplanning: A line of credit a car dealer uses for their inventory.

Floor Price: The price a seller asks for a vehicle.

Frame Damage: Any damage to the frame.

Frontline Ready: Vehicles sold at a car auction that are ready to retail and put in the front of a car lot for maximum exposure.

Government Use: A vehicle used by a government agency.

Green Light: A vehicle that is sold at a car auction with some buyer protection.

Grey Market: An imported vehicle that may not meet the safety and/or environmental standards of the United States.

Gross Weight Exemption: Vehicle has been exempted from odometer laws because it exceeds a specified gross weight.

Hail Damage: A vehicle reported to have been damaged from a hail storm.

Hammer Falls: The moment a vehicle is sold to a buyer at a used car auction by the auctioneer.

Hammer Price: The final price offered by the bidder and accepted by the auctioneer when he bangs the hammer.

Heavy Truck: Sometimes called Gross Vehicle Weight. These are sometimes Class 7 trucks with a gross vehicle weight that are 26,000 to 33,000 pounds and are definitely Class 8 trucks with a gross vehicle weight over 33,000 pounds.

High-speed Crash Test Vehicle: A vehicle damaged due to a high speed crash test.

IF: A deal facilitated by the car auction where the seller agrees to accept the price offered by the buyer IF the seller accepts it within a specific period of time.

Independent Inspection: Vehicle was inspected by an independent non-government agency prior to the car auction.

Independent Inspection/Theft Deterrent Equipped: A vehicle inspected by an independent agency equipped with anti-theft devices.

Insurance Loss: A vehicle that has suffered an insurance loss from an accident or theft.

Junk: Vehicle has been declared a total loss and should not be titled for road use. Only the parts can be salvaged.

Kelley Blue Book: An online or book guide used to find prices of used vehicles.

Lane: The area in front of the auctioneer at the car auction where the vehicle being auctioned travels to the block where it will be auctioned. It is usually referred to as Lane A, B, C, etc., or Lane 1, 2, 3, etc.

Lease: A vehicle that was registered as a previously leased vehicle.

Lien: Liens are placed on property and held by lien holders to be used as security or collateral for a debt. Lenders place liens on vehicles until the loan is paid off.

Lights: See the specific colors in these Car Auction Terms for the meanings. Each Light shown during the actual car auction tells specific information about the condition of the vehicle and is on during the auction.

Light Truck: Class 1 to 3 trucks with a Gross Vehicle Weight under 16,000 pounds.

Livery Use: A vehicle that was rented or hired to transport humans.

Local Government: A vehicle formally used by a local government agency.

Click here to see Wholesale Used Car Auction Terms from M to Z

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