Car Auction Terms
From M to Z

Auto Auction Terms -- From M to Z

These are Used Car Auction Terms with Definitions that you are likely to find at a wholesale used car auction.

Major Damage Incident: A vehicle with a major damage incident reported.

Manufacturer Buyback: The car manufacturer has bought the vehicle back.

Mileage Discrepancy: An error in odometer reading.

Motor Change: Vehicles original engine was replaced before the auto auction.

Municipal Use: A vehicle previously owned or at least used by a government agency.

National Automobile Dealers Association (NADA): An organization that represents almost 20,000 franchised car dealers.

National Association of Fleet Administrators (NAFA): An organization established for car fleet managers.

National lndependent Automobile Dealers Association (NIADA): An organization that represents independent car dealers.

NHTSA Crash Test Vehicle: A vehicle used for crash testing to measure the safety of a vehicle.

Non Compliance: A vehicle that does not meet government environmental or safety standards.

Non Profit: A vehicle that was registered with a non profit organization.

No Sale Fee: A fee charged to the seller by the car auction for a vehicle that goes through the process but is not sold.

Not Actual Miles: The actual mileage on the vehicle is different than the odometer reading.

Odometer Problem: A vehicle with odometer problems such as the fact that it might be broken, odometer exceeds limits, suspect miles and or Not Actual Miles.

Odometer Reading From Independent Source: Odometer mileage reading was provided by an independent source.

Odometer Rollback Evidence: The vehicles mileage is less than was reported to the DMV at an earlier date. This is an obvious indication that the odometer has been tampered with.

Online Auction: A vehicle car auction that is held on the internet.

Open Auction: A wholesale car auction that is open to both franchised and independent licensed car dealers.

Passed Emission Inspection: A vehicle that has passed a state required smog check for exhaust emissions.

Passed Safety Inspection: A vehicle that has passed a state required safety inspection.

Police Use: A vehicle that was used previously by the police.

Post-Sale Inspection: A service that inspects a vehicle after it was purchased from an auction to make sure it meets the condition as announced before the auction. This includes an inspection of the mechanical condition and frame and also includes a test drive.

Previous Damage: A vehicle that was reported as damaged.

Private Transaction: A vehicle sold from one private party to another private party.

Rebuilt (Rebuildable): A vehicle that was rebuilt as a former salvage vehicle. These vehicles must pass a state safety inspection before being allowed on the road and an affidavit from the mechanic stating parts replaced and repairs made.

Reconditioned: A vehicle where the repairs made has restored the vehicle.

Reconditioning (Recon): A process where a vehicles cosmetic and mechanical defects are corrected to prepare it re resale.

Reconstructed: A vehicle that was reconstructed from numerous other vehicles and no longer carries the original VIN, year or
make.

Recycled: A vehicle that was reported as having components removed by recyclers or was scrapped.

Red Light: In a car auction the Red Light which is on during the auction shows that the vehicle is being sold "As Is".

Registration Renewal: A vehicle with a registration renewal being reported by the DMV.

Remarketing: A car term which encompasses all services done by the auction from the sale of the vehicle to the transfer to the
buyer.

Rental: A vehicle that was operated as a rental vehicle.

Reported At Auto Auction: The odometer mileage has been reported from the auction.

Repossessed: A vehicle legally seized by the lender because the loan or lease is in default.

Resale (Remarket, Dispose): A term that describes selling a titled vehicle at an auction.

Reserve Price (Reserve): The minimum price the seller is willing to accept. If the bidding does not go higher than the Reserve Price then the vehicle will not be sold at the car auction.

Residual (Value): The projected price a vehicle is expected to be worth at the end of the lease.

Retail Car Dealer: Any person licensed by the state to buy and sell cars at wholesale car auctions and other car dealers and they can also sell retail to the general public.

Retail Car Dealer License: The license issued by the state to engage in the business of being a retail car dealer. See above definition.

Retail Transaction: When a private party buys a car from a licensed car dealer.

Ring (Arena): The place where the vehicles are offered for sale at the car auction and where auctioneer works.

Risk (At-Risk Vehicles): Vehicles owned by a daily rental company that are sold at the end of their service. The term Risk is used because the rental company takes the risk for selling these vehicles and incurring any possible losses. Whereas Program Cars are sold to the rental company with an end of service price guaranteed by the vehicle manufacturer.

Run List: A list of the vehicles for sale at a specific car auction.

Run Numbers: This is the position in the car auction lane during the auction designated by numbers that are assigned to a vehicle or consignors group of vehicles when lane reservations are made.

Safety Inspection: A vehicle that has passed a state safety check.

Salvage: A vehicle that has been considered "totaled" by an insurance company due to major damage and the expense to repair it would exceed what the vehicle is worth. Insurance companies apply for a salvage certificate from the DMV.

Salvage Auction: The car auction has reported the vehicle as a salvage vehicle.

Salvage Correction from DMV: The state DMV has corrected a title that was previously designated as a salvage vehicle.

Scrapped (Destroyed): A vehicle used only for its metal content.

Sellers Fee (Sale Fee): A fee paid by the seller to the car auction after the vehicle is sold.

Sellers Market: A market where the demand of certain vehicles is greater than the supply thus resulting in higher selling prices.

Service Contract Issued: A service contract or extended warranty has been issued on a vehicle by an independent company.

Special Constructed: A vehicle that has been modified from the original design.

Simulcast Auction: An live online auction that allows bids from car dealers that are not physically present at the car auction.

State Government: A vehicle previously used by a state government agency.

Storm Area Registration Title: A vehicle that was reported to be registered in an FEMA storm damaged area. This does not necessarily mean that the vehicle incurred damage because it may have been moved from the area before the storm took place.

Suspect Miles: The vehicles odometer has been reported as being tampered with.

Taxi Use: A vehicle that was used as a taxi cab.

Theft: A vehicle reported to have been stolen.

Theft Insurance Claim: An insurance claim filed for a vehicle that was stolen.

Theft Recovered: A vehicle that was stolen and then recovered.

Title: A state issued legal document showing the vehicle owners name, make, model, year, license number and VIN. It is sometimes referred to as the Certificate Of Ownership, Pink Slip or just Pink.

Title Absent Transactions (Title Attached Transactions): A vehicle sold at an auction without a title. The seller must produce the title to the seller within a specified period of time.

Unit: A single vehicle or a volume of vehicles being sold from a fleet like a rental company, etc.

Unknown Odometer Reading: The odometer reading is unknown.

Unrebuildable: A vehicle that is not repairable.

Used Car Guidebooks: These show current retail and wholesale values. Online versions are also available through kbb.com, nada.com and edmunds.com. These are good to use as a guide in determining what to sell a car for along with comparing prices found in local classified ads.

Vehicle Imported From Canada to US: Self explanatory. A vehicle imported from Canada to the U.S.

Vehicle Identification Number (VIN): A combination of numbers used to identify a vehicle comprised of 17 digits of both letters and numbers. It is found on the drivers side dashboard.

Vehicle in Dealer Inventory: A vehicle that is or has been in a car dealers inventory.

Vehicle Service Performed: A vehicle that has been reported to have had some type of service or repair.

Water Damage: A title issued by the DMV to a car insurance company for a vehicle that has sustained serious water damage. If vehicle is sold to a rebuilder then a Salvage Title will be issued.

Wholesale Auto Auction (Wholesale Car Auction): An auction that sells cars to licensed car dealers. Vehicles are supplied to the car auctions as trade-ins from car dealerships and also wholesale car dealers.

Wholesale Car Dealer (Wholesaler): Any individual licensed by the state that is allowed to buy or sell cars at a wholesale used car auction. They are also allowed to sell cars to other car dealers and car dealerships.

Wholesale Car Dealer License: The license issued by the state to engage in the business of being a wholesale car dealer. See above definition.

Wholesale Price: The price paid for a vehicle by a car dealer at a car auction with the intentions of reselling it later.

Yellow Light: A light that may be on during the bidding at a wholesale car auction specifying certain conditions that can not be taken to arbitration after the sale of the vehicle.

Go To Car Auction Terms -- A to L

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