Vehicle auctions in New York City present a unique opportunity to purchase cars, trucks, and other vehicles, often at prices below market value. These auctions primarily feature vehicles that have been seized or abandoned by the city. For those looking for affordable transportation or perhaps a fixer-upper project, understanding how Auction Cars work in NYC is key.
The City of New York regularly auctions off these vehicles to the public. Before a vehicle goes to auction, the original owner has a chance to reclaim it. To do so, they must settle all outstanding judgment tickets, including penalties and interest, within 10 business days of the vehicle being towed. If the vehicle isn’t redeemed within this period, it’s sold at auction.
It’s important to note that all vehicles are sold “as is.” This means the city provides no guarantees or warranties about the vehicle’s condition. Potential buyers need to be prepared to assess the vehicles themselves and understand they are purchasing them in their current state. Also, the responsibility for picking up the vehicle from its current location falls entirely on the buyer. Proceeds from the auction, after covering expenses, are directed towards settling the original judgment debt associated with the vehicle.
How to Bid on Auction Cars
Participating in a vehicle auction in NYC is straightforward, but requires attention to detail. Here’s a step-by-step guide to bidding:
- Identify the Lot Number: Before you attend an auction, make sure you know the lot number of the specific vehicle you are interested in bidding on. This number is crucial for identifying the car during the auction process.
- Highest Bid Wins: Vehicle auctions are competitive. The car is sold to the bidder who makes the highest offer. Be prepared to bid competitively if you are serious about acquiring a particular vehicle.
- Bidding Disputes: In the event of a dispute regarding the highest bid between multiple bidders, the auction process for that specific vehicle will be restarted. This ensures fairness and clarity in determining the winning bidder.
- Sheriff’s Discretion: The Sheriff’s Office overseeing the auction holds the authority to refuse any bid and even cancel the sale at any point. This is a standard clause in auction rules to maintain order and integrity.
What Happens After You Win an Auction for a Car?
Winning the bid is just the first step. Here’s what you need to do after you’ve successfully purchased a vehicle at auction:
- Immediate Cash Payment: Payment is due immediately upon the sale being finalized. Cash is the only accepted form of payment. If you have a resale certificate, you can present it to have the sales tax waived.
- Towing May Be Necessary: In many instances, the vehicles purchased at auction will need to be towed from the yard. It’s important to be aware that vehicle keys are not provided. Plan accordingly for towing arrangements.
- Removal Deadline and Storage Fees: You must remove the vehicle from the tow yard by 5:00 p.m. on the day of the auction. Failure to do so will result in a storage fee of $20 per day. If the vehicle remains uncollected for 96 hours after 5:00 p.m. on the auction date, it will be considered abandoned again and will be removed, likely at your further expense.
- Street Parking and Driving Regulations: Once you remove the vehicle, you cannot legally park it on the street or drive it unless you have obtained proper registration and license plates. Ensure you understand the legal requirements before operating the vehicle on public roads.
- Certificate of Sale and DMV Title: To legally own and operate your auction car, you must take the Certificate of Sale, which you receive at the auction, to the Department of Motor Vehicles (DMV). The DMV will then issue a title in your name. It’s critical to safeguard this Certificate of Sale as only one original is issued, and duplicates are not available under any circumstances.
- Salvage Vehicle Considerations: The DMV may classify vehicles purchased at auction as salvage. This classification might require the vehicle to undergo a thorough examination before a new title or registration can be issued. Be prepared for this possibility and factor in potential inspection costs and processes.
- Tow Yard Fees: Be aware that the tow yard might impose a separate tow fee for releasing the purchased vehicle. Clarify any potential fees with the tow yard in advance.
Property Auctions: An Overview
Besides vehicles, the Sheriff’s Office also conducts auctions for real and personal property to satisfy unpaid judgments. These are known as “private asset auctions.” These auctions are advertised in New York City newspapers and are also publicly posted in each county’s Sheriff’s and county clerk offices. The proceeds from these property auctions are used to pay the creditor who is owed the judgment.
Sale of Real Property:
- Successful bidders for real property must make a down payment of at least 10 percent of the bid price, with a minimum of $2,000, immediately at the auction. Accepted payment methods for the down payment are cash, money orders, and certified checks. A Memorandum of Sale is issued immediately after this initial payment.
- The remaining balance of the bid price must be paid within three business days following the auction.
- Failure to pay the balance within this timeframe will void the sale, and the property will be re-auctioned.
- A bidder who defaults on the terms of the sale may be held liable for damages to the judgment creditor.
- The buyer is responsible for paying any applicable taxes and transfer or delivery fees associated with the property.
- The Sheriff retains the right to either approve or reject any and all bids made on real property.
Sale of Personal Property:
- Payments for personal property must be made exclusively in cash.
- The Sheriff’s Office sells only the right, title, and interest in the personal property being auctioned.
- Similar to real property auctions, the Sheriff reserves the right to approve or reject any bids on personal property.
Frequently Asked Questions About Vehicle Auctions
To help you navigate vehicle auctions more effectively, here are answers to some frequently asked questions:
Can I buy back my own vehicle at auction?
No, individuals are not permitted to buy back their vehicles at these auctions. The purpose is to liquidate seized or abandoned assets, not to facilitate repurchase by the original owner at auction prices.
How old do I need to be to participate in an auction?
You must be at least 18 years old to bid and purchase vehicles at these auctions.
Can I use a credit card or make a partial payment?
No, credit cards are not accepted, and partial payments are not allowed. Full payment in cash is required immediately upon winning a bid. If you are not prepared to pay in cash right away, you should not bid.
Are there any warranties on the vehicles?
No, neither the Department of Finance nor the Sheriff’s Office provides any warranties, either expressed or implied, regarding the year, quality, or condition of any vehicle sold at auction. All vehicles are sold “as is.”
What about safety recalls on auctioned vehicles?
The Sheriff’s Office does not provide any information or guarantees about the functionality, safety, or recall status of the vehicles being auctioned. It is strongly recommended that potential buyers conduct their own research, such as a VIN search (https://vinrcl.safercar.gov/vin), on any vehicle they are considering bidding on to check for recalls and safety information.
If I find problems with the car after purchase, will the City compensate me?
No, purchasers have no legal recourse against the City, including the Department of Finance, the Sheriff’s Office, and the auctioneer, for any issues that may arise with the vehicle after purchase.
If the vehicle turns out to be a “lemon,” can I renegotiate the price?
No, the sale price of a vehicle is final once the auction is complete. The price will not be adjusted or renegotiated based on the vehicle’s condition after the sale.
Are any vehicles sold with existing liens?
Yes, in some instances, vehicles with liens may be sold at auction. When you purchase a vehicle, you are buying the right, title, and interest to it, which is subject to any existing recorded liens. Liens remain with the vehicle even after it is sold at auction, and the lien holder may repossess the vehicle to satisfy the debt. The Sheriff’s Office is not responsible for informing bidders about any liens on vehicles. It is the buyer’s responsibility to conduct due diligence.
Am I responsible for parking tickets from the previous owner?
No, you are not responsible for any outstanding parking tickets that were issued to the vehicle’s previous registered owner. Your responsibility for parking tickets begins from the time you legally own the vehicle.
Need Assistance?
For any further questions or assistance, you can contact the Department of Finance.
- Online: Send an email through their contact form.
- In Person: Schedule an appointment for an in-person visit.
By understanding these guidelines and frequently asked questions, you can confidently navigate vehicle auctions in NYC and potentially find a great deal on your next car. Remember to do your research, inspect vehicles carefully, and be prepared to act quickly and pay in cash if you are the winning bidder.
