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How Do Car Auctions Work? Car auctions involve the sale of vehicles to the highest bidder. These auctions can be live or online, and vehicles are often sold "as-is." Participants include dealers, wholesalers, and private buyers. Before the auction, cars are inspected, and bidders register to participate. Bidding starts at a predetermined price and increases with each bid until no higher bids are made, and the highest bid wins the vehicle.